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6 REALLY COOL THINGS: BE the KING of your CASTLE!!!
6 REALLY COOL THINGS About Becoming the King of your Castle!
If you want to be a millionaire, if you want to be smart with your money, if you want to get ahead in life, build security, establish equity, and retire in confidence, then you...
Home Loans – Identity Theft Protection Could Hurt Home Sales
Identity theft has been a hot topic in the news during the last few years. Just a month or so ago, forty million credit card numbers were compromised due to a computer attack on a credit card processor. Consumers are rightly concerned, as it can...
Home Security Patio Sliding Glass Doors.
As promised at the end of part 4 of this series, in this section
I will deal with Patio Sliding Glass Doors. Quite often
homeowners install sturdy locks on their front doors but leave
their patio doors and sliding glass windows "wide open"...
Pump Up The Value Of Your Rehab Real Estate Investment
There are two legal ways to increase your wealth.
1. Keep more of what you have (e.g., tax strategies, rehab efficiencies, cost savings)
2. Add value to something (e.g., a real estate investment, stocks, bonds)
Let's focus on adding value to...
This Winter, Provide Water For The Birds
Even the most novice bird watcher places a bird feeder out in winter, what strikes me, is the number of experienced bird watchers who do not provide water for the birds during winter.
The energy expanded looking for a fresh water source could be...
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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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