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10 Ways To Save On Homeonwers Insurance
1. Raise Your Deductible - Save Up To 25%
Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money...
Checklist: Do I Need to Replace My Chimney Cap?
As you are cleaning leaves out of your home’s gutters, dealing with Christmas lights, or adjusting a satellite dish, don’t forget to evaluate your chimney caps while you’re on the roof. Chimney caps are those mesh-sided enclosures (usually made of...
Deck Railing Designs And Ideas
There are several deck railing design ideas for creating your perfect home deck. Decks are an oasis for a homeowner. They provide the perfect outdoor space for an individual getaway or an evening party with friends. Deciding on the...
Securing UPVC Door Locks with Multipoint Door Lock Cylinders
The sight of a uPVC door on your home immediately acts as a
potent visual deterrent. Burglars know that not only are these
doors more secure than their wooden counterparts, they are also
fitted with multipoint locks: a locking mechanism that...
Why Double Glazing
Why replace your single-glazed windows with double glazing ? For most, the precipitating factor for looking into double glazing is a need for new construction (or renovation) to conform to modern energy standards. Others decide to replace their...
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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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