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Flowers Online - Be Safe With Payments
The Internet has made the world into a global community. No
longer is there a need to expend even the price of a phone call
to send flowers across town, across the country or to the other
side of the world. All you need is an Internet connection...
Giving a Store and Maintain your Business Tools and Equipment with Self Storage
For the small business owner, particularly for businesses which require access to tools and heavy equipment, self storage can be a real boon.
If you're a landscaper, carpenter, plumber, or electrician, you need easy access to the tools of your...
Home Security Locks and Hinges
Having dealt with the doors on your home in article 3, next I
would like to take a look at locks and hinges.
Many homes use the lock-in-knob, this offers you convenience but
it does not offer security from break ins. The fact is that...
Property Investment – Finding The Right Property Manager
Many property investors will choose to manage their own properties, especially if they live within a short distance. However, for many investors it just may not be feasible to take on the management of their properties if they are spread out between...
Security gives you that peace of mind
Seeking the latest opinion relating to security.
When you are on the lookout for better information about security, it will be intricate separating value packed information from unprofessional security submissions and support so it is important...
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Industrial Income Property Financing: Part 3 Of 3
Welcome to the third and final segment of a three-part series about income property. In this segment we will be discussing financing options for industrial income properties as well as the upside (and downside) of owning this type of property.
Financial Concerns
Of the three types of income property, industrial property requires the greatest degree of technical expertise and experience. Likewise, financing the acquisition of an industrial income property can be, at best, very risky without adequate planning and know-how.
The first thing to consider is what kind of industrial application the building will be used for. Not all lenders will fund the purchase of all types of industrial income property types. For example, funding the purchase of industrial real estate to be used for petroleum refining is a risky investment for many lenders. Make sure your lender is able to support your income property goals.
LTV rates for most industrial income property loans run at a maximum of 75%, so plan on having a nice pile of investment capital on hand. Industrial loan interest rates can also be a little higher than for other income property types-usually between 5.6% and 7.5%. The 20-year term that comes with most industrial income property loans is fairly typical.
Managerial Concerns
Because of the nature of manufacturing facilities, liability becomes much more important than in residential or commercial income properties. Securing the proper type and amount of insurance can help
mitigate much of the risk you will take on after you lease your industrial facility.
While industrial income property comes with certain risks and challenges, it lacks to a large extent, the oft-times inconvenient nature of residential income property management. Don’t expect any late night calls concerning overflowing toilets or broken stoves. Much of the time, the company leasing your property is obligated under contract to handle typical repairs and maintenance to the facility or equipment.
Unlike commercial and (especially) residential tenants, industrial tenants usually intend to lease your facility indefinitely, or until they either liquidate or their operations outgrow your building. This is good news because you are virtually guaranteed cash inflow for the duration of your income property investment.
Conclusion
In the final analysis, investing in industrial income property requires a lot more time, money, and prior experience than it’s commercial or residential counterparts. For investors with the right skills and financial backing, however, the payout can be much more rewarding than any other income property investment.
About the Author: Cameron Brown is an internet marketer specializing in investment property. For more information about residential income property, please visit Security National Capital.
Source: www.isnare.com
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