Tips To to Assess Any Real Estate With the Approaches to Value

The valuation steps applied to create a supported conclusion of a defined value based on an analysis of applicable general and specific data. Assessment in creating an opinion of real estate value follows specific sets of processes that reflect 3 different methods. These include:

– Cost Method
– Direct Comparison Method
– Income Approach Method

One or more of these methods can be used in the assessment of real estate valuation. The methods to be used will rely almost entirely on the type of property being assessed or appraised; however may also factor in the use of the appraisal, the scope of work involved, and the data availability for the analysis.

Cost Method

The cost approach to assessment and appraisal is established by understanding the construction methodologies and property attributes related to cost. The cost approach is estimated by adding the cost of land to the current cost of construction related to all improvement on land, and subtracting depreciation in all improvements on the land. The construction costs of buildings would include a reproduction cost or a replacement cost of the same or similar like materials or systems. This approach works best when it used for the assessment of new or newer properties that are not frequently exchanged in the market. The actual costs are usually derived from cost estimator software, cost manuals, builders, and contractors. Note: The land would remain a separate value when using the cost approach.

Direct Comparison Approach

The direct comparison method to assessment of real estate is most useful when there is a large number of similar like properties that have recently transacted on the market or are currently listed on the market. Using this method, the assessment would come from identifying the subject with similar properties, called comparables (or comps). The sale prices that most identify with the subject would have a heavier weight on the value, oppose to one that is further from the subject characteristics. Most of the time the comparables would create a range of value, upon which; opinion must be used to find an exact value. Several elements or factors are used to qualify the degree of similarity between comparables and the subject. This would include: real property rights, financial terms, property conditions of the sale, post sale expenditures, location, market factors, physical characteristics, economic characteristics, use/zoning, non-real estate components of sale (chattels, fixtures). After the best comparables are set, a dollar figure or percentage is applied to the sale price of each property to estimate the hypothetical value of the subject. For instance comparable A has 1 more bathroom than the subject; therefore subtract $9000 from the comparable to hypothetically get the sale to reflect the same characteristic as the subject.

Income Approach

The income method to the assessment of real estate would be from an analysis of present value of the future benefits of property ownership. A property’s income and resale worth upon return may be capitalized into a current, lump-sum amount. There are two methods of the income approach; one is direct capitalization and the other yield capitalization. Direct capitalization is the relation between one year’s income and worth indicated by either a capitalization rate or an income multiplier. Yield capitalization is the relationship between several years of stabilized income and worth at the end of a specified period reflected in a yield rate. The most commonly used yield capitalization method would be the discounted cash flow analysis.

 

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Common Valuation Mistakes On Realtor

OK OK… I don’t really mean to not trust your Realtor or other advisors, unless they give you really bad advice, like the three mistakes outlined in this article. Many Realtors understand how to value real estate and can be a great asset (especially the ones that focus on real estate investors), but the unfortunate truth is that many investors and agents make these common mistakes:

· Add value to a property for a bedroom

· Incorrectly adjusting for square footage

· Compare non similar style homes with no adjustment

Add value to a property for a bedroom

This is by far the most common error that I see. In some cases a bedroom will add value but normally you cannot count on it. If a house has more bedrooms it is likely bigger and the large home is more valuable, but the bedroom itself is not adding the value, the square footage is. If two houses are the same size and one has an additional bedroom it is lacking something else OR has much smaller rooms, which will deter some buyers. It is basically a wash for valuation purposes. The one exception to this is if the house does not conform to the neighborhood. For example, if the entire neighborhood is two or three bedrooms and you have a one bedroom, it actually should add value to add a bedroom, even if you are keeping the house the same size. I would be very careful in these rare cases because it is hard to know how much value a bedroom will actually add. So when you are looking at your comps, look at the size and not the number of bedrooms.

This does not hold true for bathrooms. Bathrooms will almost always add value.

Incorrectly adjust for square footage

A less common, but more devastating error that I see is to use a price per square foot model to value a home. Many agents make this mistake. The error is to use an average price per square foot and multiply that number by the size of the house you are trying to value. It is not wise to use this method, especially if your house is on the small or large size for an area. Think about it. Is a 2,000 square foot house really worth twice as much as a 1,000 square foot house that might be next door? The area brings a certain range of values that all houses fall in and the lot values should be close to identical no matter what size house is on it. Using a price per sq foot model does not account for the lot.

It is true that you need to adjust for size, because larger homes carry more value, but it is easy to mess the adjustment up. The best way to do this is to dig into your comps and get an idea for the required adjustment. This can be very tricky because the value per square foot decreases as the homes get larger. It is a safe bet to never buy the largest or smallest house in an area, but if you do, use a very conservative adjustment for size. One rule of thumb that I like to use is 1/3rd of the average price per square foot as the size adjustment. This is pretty close to average, so it is nice; but again is a rule of thumb and is not science.

Keep in mind that the adjustments that I mentioned are above the ground adjustments. Basements do NOT carry the same value. In fact, it is normally worth less than half of the above ground square footage. For example, in a nice area an above ground adjustment might be $90.00 above ground but basements in that area might only be worth an adjustment of $30.00 per finished sq foot. I never have understood this because if finished it is usable/livable space and people love basements. I gave up trying to understand why the basement has little value and have just accepted it. You don’t need to understand why it is true as long as you know it is true and use that to help come up with an accurate value.

Compare non similar style homes with no adjustment

This one makes me laugh when I hear it. The biggie that I see here is comparing the ranch or rambler style home to a home with stairs, like a bi-level or 2-story. The house with no stairs is always more valuable. You need to think of yourself as the buyer and what a buyer would want. Another common example of this mistake is comparing older homes to newer homes. In fact, we just took a call today from a client that was comparing her home to a never been lived in house one neighborhood over. They were almost identical in size and were within a quarter of a mile to each other, but one is about 30 years old and one was just built. Do you really think that someone would buy a used home for the same price they can get a new home for? The newer home is worth more, so it is best to not even use that comp; but if you need to use it, be sure to adjust for the age.

My hope is that by understanding these common mistakes you will be able to come up with more accurate after repaired values, and be a better investor for it.

 

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Between Buy and Build Property

When families, or individuals, first begin to think about purchasing a home, the question often arises as to whether they should buy a previously owned house, and then add a few personal touches, or whether they should hire a custom home building company to help them design their own. There are benefits and downfalls to both, making it a tough choice.

Buying

Buying a new home has certain conveniences that many people appreciate, like the fact that everything is already done. For example, the washer hook up is already in place, the walls are already insulated and the bathroom is all ready to be used. This saves the hassle, and possible conflict of making major decisions, which can be a huge relief for individuals that are a bit indecisive. Buying a home means that buyers can move in sooner, and they may save money in the long run, depending on the house.

The same things that are positives have the potential to turn into negatives. It may be nice that the washer hook up is already in its designated spot, but what if it is in the kitchen and buyers would prefer it in the bathroom. This is a small adjustment, but when a buyer is not satisfied with the minor things, it can all build up over time. Also, the bathroom may already be ready to be used, but how old are the pipes?

The pipes, furnace, central air system and the very foundation of all previously owned homes have been in use for several years when the building is purchased, and they may need replaced sooner than buyers are prepared for. A used furnace is more likely to need repaired than a brand new one, and the same rule applies to everything in the house.

Building

Working with a professional home builder can be fun and exciting. Every room will be the exact size that the buyer wants or needs, buyers will be able to have an energy-efficient home, and the ability to personalize every space guarantees that custom homes will have more personality. Even the floors will be perfect, whether they are hardwood, tile or carpet.

Vital components of new homes, such as the furnace, will have less wear and tear, costing first time buyers less money in the long run, and less hassle. Last, a professional home builder will make sure that everything is exactly how the buyer wants it, eliminating the need for renovations, and the stress that can come with each new project.

Building a house can be stressful for buyers that are unsure of what they want. Are open spaces better or closed off rooms? Where should the washer hook up go? Qualified home builders with enough experience can help make some of these decisions a little bit easier.

The only other downside to custom-built homes is that it may be more expensive when looking at the short-term cost. Brand new furnaces are not cheap. On the other hand, most buyers will wind up with a brand new furnace if they purchase an older (cheaper) house in the long run anyway.

All in all, it boils down to whether buyers would like to spend a little bit more money when first buying a home for a brand new home that has been designed to meet their needs, or whether home owners would like to spend more money in the long run as renovations take place and things, like the furnace, need replaced. Taking the time and money to hire an experienced home builder can save families years’ worth of stress and hassle.

 

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Common Mistakes To Avoid When Investing In An Apartment Building

An apartment building can still be a good investment today. Why? For starters, there are still a lot of people who are still looking for homes to rent. In addition, the units of an apartment building do not just have to be spaces for residence or homes for families and individuals. By getting the right permits, units in an apartment building can be rented out as commercial spaces.

First-time buyers of apartment buildings will certainly have high expectations regarding this particular investment. This is mainly because they will invest a significant amount of money for this venture. As such, if you want to make sure you will own the right apartment building that can help you find success in the field of property rentals, make sure you avoid these common (and costly) rookie mistakes:

Not looking into the history and reputation of the apartment building’s builder or developer.

As a first-time owner of an apartment building, the last thing you want to happen is to stumble upon some structural problems or system failures. As such, it is important to check the background, capability, and reputation of the company that constructed the whole property. Going online and asking companies or individuals that have worked with the property developer is a good way to get some ideas about their competency. If the property developer has a good reputation and has stellar reviews about the properties they built, chances are, it is quite safe to buy a building that they constructed.

Buying a property that is located in an unpopular area.

When purchasing an apartment building, keep in mind that aside from your budget, an important factor you have to consider is its location. Real estate experts say that it is a good idea to buy a property in an area that is improving since buying in a declining location will simply result in high vacancies and rent drops.

Not having sufficient cash flow and reserves.

As a newbie investor, if you are not confident with your reserved funds, you have to get into deals that will create a quick cash flow only. Avoid going into deals that won’t provide a cash flow from day one even if that transaction promises a huge potential profit since you may be put at risk of being unable to pay the bills.

In addition, make sure you have enough cash reserves. Failure to do so can get you involved in different complicated situations. As a property owner, keep in mind that a lot of unexpected issues can happen. As such, you need to have a reserve fund that is adequate to pay for these emergencies.

 

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Tips To Value a Freehold Property

There are no yardsticks to measure the value of a freehold property. This is because evaluating a freehold is not an accurate science. However, you can follow certain guidelines on what you need to take into consideration when valuing a freehold, which is produced by the advisory services that give free advice to leaseholders. You must also take these three factors into consideration:

1. The current value of the property

2. The annual ground rent

3. The number of years currently left on the lease

Also, evaluate the expected percentage increase in property value that results from extending the leases of different lengths, along with forecasted long term interest rates and inflation rates.

Take help from an expert valuer rather than trying to work out a figure all by yourself, to present before the freeholder. An expert valuer will be able to give you the best advice, which will enable you to make a practical offer.

You will find expert valuers online. They will help you with the entire process of negotiation and buying the freehold.

For the benefit of the freehold, most surveyors add a little extra to a property’s value. This is done after comparing it with similar property with the same number of years on the lease but no freehold.

First, approach your freeholder informally, before you serve him with a first notice. This document should include your preliminary offer for the freehold, which starts off the legal process of buying it.

A word of caution. Never produce an initial notice without obtaining an expert valuation. If you make the wrong evaluation in the initial notice you won’t be able to take back the offer. After the initial notice, wait for the freeholder to reply to it with a counter notice by a date that you have given. The freeholder must be sanctioned at least two months from the date the initial notice is served.

If the freeholder is not sending his counter notice within this period, the leaseholders can take matters into their hands. They can apply for a vesting order at a court. It is now up to the court to move the freehold to the leaseholders. So freeholder’s should respond on time to the initial notice for their own benefit.

Buying a share of freehold will make little profit if you already have had a decent length lease. You would still have to give the same authorized costs as someone with a short hire, but would lead to a drop in the value of the property.

 

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How To Make The Seller Sign Your Agreement

We have been talking a lot recently about how to locate great deals. When dealing with individual sellers I recommend following these steps:

· Make contact (advertising)

· Speak on the phone and set an appointment

· Negotiate the deal

· Due diligence

· Closing

In the above list, closing refers to actually buying the house. There is no turning back after you close the deal. In the negotiation process there is also a close. What I mean by this is getting the seller to agree to the deal and sign the contract. I want to talk today about how to actually close the negotiations and get the seller to agree to your offer. This will only come AFTER you have verbally agreed to the offer.

For some reason people get scared of this. I have actually been in the house with other investors when they had a deal but did not get the seller to sign (they objected to their own offer), that is crazy. There are many rules, especially dealing with pre-foreclosures that give the seller time to back out after they sign. The right thing to do is to give them this time but your chances are much higher if they sign a contract on the spot. Always, always get a written commitment when you can.

I never bring anything in the house with me so once we are at the kitchen table and ready for the paperwork I go over all the terms we talked about again and ask them if I should go get the agreements. It goes like this:

Investor – “I think we can agree to those terms. So you want to sell us your house for $90,000 cash and you want all your money within the next two weeks. Did I get that right?”

Seller – “Yes that is what we agreed to”

Investor – “I am sure that will not be a problem, does it make sense for us to go ahead and write this up on an agreement?”

Seller – “yes, do you have one?”

Investor – “I normally carry a few in the car. Do you mind if I go check?

Seller – “no”

Investor – “I will be right back. When I come back should I just come right back here or would you like me to knock again?”

Seller – “No don’t knock, just come back here.”

At this point you will go get your contract and come back in. Sit down and pull the agreement out. NEVER call it a contract because that word scares people. Go through the agreement and complete the blanks BUT ask the seller for input on every line you can. For example you would say “How is your name spelled? And is that how it is listed on title? What is today’s date? What is the address here?”

Even if you know the answers, ask as many questions as you can so they feel as if they participated in putting the agreement together. Once the agreement is done say out loud “it looks like I put my name here” and sign it. Pass the agreement and say “it looks like you put your name here”, at this point hand them the pen.

They may or may not read it. If they start to read it and it takes a while you need to become very reluctant. You will want to start asking questions like these:

“How is the school system?”

“When was the last time the roof was inspected?”

“How about the furnace?”

“I noticed a problem with ___________, how long has it been like that?”

As you ask questions, especially ones about the house, they will want to sign it quicker. They don’t want to lose you as a buyer. I am OK putting pressure on them like this because they have time after I leave to review everything. You might even tell them to call you the next day if they have any questions about the agreement.

Be upfront with them as you go through the agreement and explain things that they should know, like the inspection period, what they can expect in closing costs, etc.

After you leave get your financing lined up and do your inspection and due diligence. If anything comes up that will cause a delay or a reason for you not to buy the property, call the seller right away. It is also a good idea to call every week or so leading up to the closing letting them know you are excited to work with them. Give them updates on the progress with closing.

 

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How To Find Homes For Sale In The Right Track

Buying a house is a major financial decision that will not only give you a peace of mind, but also a wonderful place to live, and of course, the perfect location to start a family for those who are planning to settle down. Sooner or later, you will have to decide to settle down on your own home that will be considered as the best location to start a family.

That being said, it is important to greatly consider the factors that will affect your everyday living experience. The following tips will help to get your search of to the right start. While it is important to note the number of rooms, the size of the yard and the layout of the kitchen, there are several important things you need to consider before making an offer.

Avoid trying to time the market

– Trying to time the market when you are planning to purchase is impossible. Considering whether the market drops low or gets too high will only prolong and possibly make you lose your chance of owning your perfect house of choice. The best time is when you find the best one that you can afford. The real estate market is cyclical, and waiting for the perfect time will only make you miss out on an opportunity.

Location

– Proximity to essential establishments and the surrounding people can give great impact in your living environment. You can overlook a couple of imperfections in a home if you love the neighborhood and neighbors. As most would say, three of the most important factors in buying a home is location, location, location. When choosing, you need to consider its proximity to your work and other essential establishments, environment or the neighborhood, and public transportation.

Inspection

– Of course, you will need to check everything out inside the house. When you have finally narrowed down your list of choices, it’s time to hire a home inspector. It may cost a little but in the long run, it will end up saving you thousands. This will help you gain the best information regarding the new home so that you can make the best decision as to whether or not take it.

Situation factors

– One important thing to note: when buying a home, you can easily replace furniture, and other things inside however, you can never change the location. This is why it is important to also check the situational factors. Is the location suitable for kids, pets and gardening? Do the neighbor’s window look directly to your home? Has the driveway elevation properly installed for safe access to the property?

 

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Tips To Buy Rentals With No Down Payment

This tends to be a pretty controversial subject, and for good reason. When I was getting started in the business, I was young and broke and had no credit to speak of. I was not qualified to borrow money, yet I figured out how to buy properties, and I bought a lot of them. It was not long before I became a full time real estate investor, and on paper, I was a millionaire long before my 30th birthday. I accomplished this with a lot of hard work, education and tolerance to take the risk.

With all this said, just because you don’t need money to buy houses, does not mean you should have no money. I am a big, big believer in this. You see, although I was a millionaire at a young age, I basically lost it all when the market shifted. I was too aggressive with my growth, and did not establish an appropriate amount of reserves. After starting over, I structured things differently and am in a good position to not only survive a down turn, but to thrive in it. In this article, I will briefly walk through 4 ways to buy rentals with nothing out of pocket, but want you to understand that this does not mean you should own rentals with no reserves.

Owner Finance: This could mean many things, but for the purposes of this article I am going to assume that the seller of the home is extremely motivated and is willing to basically sell the house just to get away from the mortgage payments. This is commonly referred to as a subject-to transaction because you, as the buyer, will take title subject-to any other liens that are in place. What this means is you get ownership of the house, but the seller is still on the hook for the loan. You as the buyer will agree to either pay off the loan or make payments on the loan on their behalf. If you don’t, the lender can foreclose and wipe you off of title.

The seller is taking a tremendous amount of risk with this type of transaction, so it is difficult to negotiate and they need to be extremely motivated. It works well for you because you don’t need down payments or to qualify for a loan. It works for them because they have someone else making the payments on their loan, which relieves them of the payment pressure, and potentially can improve their credit. As you become more experienced, this is a strategy you will want to look into. This allows you to purchase an unlimited number of cash flowing properties without ever needing to qualify or sign for a loan.

Lease Options: This is the strategy that really worked for me when I was just getting started. I like it a lot because it is easy to explain to the seller and it is not difficult to get them comfortable with it. They still need to be motivated to want to do this, but nothing like the subject-to transactions.

The way this works is you negotiate with a seller of a home to lease the property for a set period of time. I would typically negotiate 10 years on these, but it can be anything you are comfortable with. The rent amount will be set. From there you agree on a price to buy the property for sometime during the lease term. The price is typically locked in close to today’s value. You then sublease the property, hopefully for more than your rent payment, and wait for the value to increase. If the value does not increase, which has happened to me, you can either re-negotiate the deal or let the property go. You have no obligation to buy, so you are not taking the risk of market fluctuation. If and when the value does increase you have several options: You can sell your option, exercise your option and resell the house for your profit, or just exercise the option and keep the property in your portfolio.

Bridge Loans: The idea here is to find a property that needs a lot of work that will make a good rental. You need to negotiate a price were you can buy it, fix it, and roll in all closing costs, and still be at or below 70% of the after repaired value (ARV). This does not work well unless the property needs to be repaired. This is very different than the first two strategies discussed, and is commonly used with bank owned foreclosures. Although, anytime you can negotiate a great deal will work.

After you purchase the home, you want to get it repaired and get a tenant in place as quickly as possible. You then refinance the loan into your permanent rental property loan. There are some additional details for this to work that are beyond the scope of this article.

Partners: At the time the market was collapsing around me, there were tremendous buying opportunities everywhere. Using the Bridge loan strategy, I was able to pick up a handful of deals that I still have today. I did not qualify for loans, so I brought in a partner to sign on the debt for me, and I shared the deal with him 50/50. Neither one of us put money down, and the properties all cash flow, net of vacancies and maintenance, a minimum of $300 a month. There has also been a tremendous amount of appreciation over the years. The houses have more than doubled in value!

No matter what your strategy in real estate, partners can help you reach your potential. They can provide anything that you are lacking to get deals closed. I have a great deal of respect for partnerships because I think they are necessary, but I also think they can be the worst decision ever made.

 

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All About Homeowners Association

The phrase “Homeowners Association” may sound innocuous enough to some but it sends shivers down the spines of many. In books and movies this group of home-owners is typically portrayed as power-hungry, meddling and suspicious. Think Big Brother meets Mussolini and you’ll have an idea of this group’s image.

Is this reputation deserved? It’s hard not to believe the rumors while being bombarded with news stories about Homeowners Associations (H.O.A.’s) that force residents to take down American flags, or those that take homes when residents are late paying their dues.

H.O.A.’s are like “little governments,” according to Jackie Faye of NBC News. Like all governments, they exercise the power granted to them in one of two ways: with benevolence or authority. Perhaps Abraham Lincoln foresaw the rise of the H.O.A. when he claimed that “… if you want to test a man’s character, give him power.”

So, who are these people?

A H.O.A. is actually a legal entity whose purpose is to manage a group of housing units, or a common interest development, as they are known in some regions of the country. These developments may be single-family dwellings or condominiums. The decision-making body of this entity is typically known as “the Board,” and there may be committees as well. The association board is composed of homeowners who act as volunteers, and are generally chosen in annual elections open to all homeowners within the community.

The reasons for volunteering to sit on a homeowners association board are varied. Some homeowners want more of a say in how the money is spent, others are concerned with maintaining home values.

Duties and responsibilities

Although it seems as if their boards have unlimited power to do as the members wish, most states have laws that govern what they can and cannot do. Yes, they sometimes overstep these laws. While duties and responsibilities vary across the country, here are some that are common to most:

• Paying taxes on the common areas
• The enforcement of the association’s rules, such as the bylaws and the Covenants, Conditions and Restrictions (CC&Rs)
• Creating the association’s budget
• Creating rules for the use of the common areas
• Disciplining homeowners for violations of H.O.A. rules

Buying a home in a H.O.A.-governed community

They must supply the homeowner with certain documents when there is an offer to purchase the property. The seller then gives these documents to the buyer. There is usually a charge for the copies and the seller typically pays this fee.
The doc packages are usually quite thick and may be extremely complex and boring. It is essential, though, that you read and understand everything in them. If you need help, contact an attorney. Once you own the home, you are obliged to follow the rules.

Some items to pay close attention to in the CC&Rs include:

• Pet policies, if you have pets
• Parking rules, for yourself and guests
• The rules and restrictions for the use of on-site amenities
• Landscaping rules
• House color, exterior decorations allowed
• Restrictions on the construction of outbuildings, such as sheds and gazebos
• The rules regarding leasing your home

Look at the H.O.A.’s budget:
• Does the income cover the costs? If not, why?
• How is the money spent?
• Does the reserve account hold enough money for emergencies?

Check out the board’s meeting minutes:
• What type of issues does the board typically face?
• What type of actions have they taken against homeowners?
• Have they talked about increasing fees or any upcoming special assessments?

Read over the governing documents, or bylaws, to determine how and when elections are held, how to sit on the board and the length of board member’s terms.

One of the most important aspects of purchasing a home governed by an H.O.A. involves determining if there is pending litigation. Sometimes the association is suing the developer or a homeowner or the homeowners association is being sued. If there is litigation pending, you may not be able to get a loan, so make sure you get all the information you need about this.

Buying a home regulated by a homeowners association has advantages, such as security and the regulation of the area’s appearance and noise levels. The drawbacks, on the other hand, are numerous and include the additional monthly outlay for association fees and the sometimes-meddlesome members of the homeowners association. Do your homework when considering purchasing into a common interest development governed by a homeowners association. Investigate it thoroughly to make sure you don’t end up in a horror story on the nightly news.

 

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How To Improve Our Tenants

The best type of tenant improvements are those that not only make the place look better and the tenants happier, but those that improve your revenue thus increasing your ROI. These improvements can take on many faces and investments of time, but in the long run if things are made better, then they are truly worth your time and money.

But, are there ways to make tenant improvements fulfill both of these needs? Absolutely! In fact, here are several tips that can make the road of property improvement easier.

1. Do your own homework. Take the time to determine what changes need to be made and what the priority is for each. Talk to those who will be affected and learn when would be the best timeline.

2. Stay involved with the planning process. Be sure you understand the blueprints and design plans so that you can fully understand what changes will be made.

3. Be sure that lease agreement ensures that all the parties involved get the best deal possible. Take time to study the lease agreement to ensure that your proposed improvements are a fair deal and that it provides the rent that works for you and the tenant allowance is realistic.

4. Walk through the space with your contractor and be sure that the scope of the work and all the details are understood prior to signing anything. Anytime changes are made after the papers are signed, it will cost you time, and quite often more money!

5. Be flexible. As you do the walkthrough, be open to ideas and alternatives in materials or use of the spaces.

6. Think about the present as well as the future in regards to your lease. If you are considering a long list of tenant improvements, it may be possible to space them out over several years, thus making it possible to recoup some of your investment sooner rather than later.

7. If you are new to the tenant improvement process, be sure that you understand the zoning regulations and that the contractor you work with knows you expect them followed.

8. Be upfront about your budget. If your contractor understands that adding on a multitude of extras is not going to happen due to budgetary restraints, they will be less likely to push you towards something that is not achievable.

Tenant improvements do not have to be the things that nightmares are made of! Due diligence and patience will go a long way towards making the process simpler. Talk to your local contractors to learn more about to make this process easier and more efficient.

 

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