Will Commercial Zoning Increase Your Property Value?

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If you have the correct combination of items and you have a large enough pocketbook, this may be your ticket to retirement. But sometimes, it’s your ticket to the poor house.

I looked at a home that is zoned mixed use. In this area, this means that you can either use the residence as a home or use the residence as a commercial site. These types of sites are usually limited to low impact items such as office buildings, apartments, etc.

What’s the catch? Well, you’ll have to own a large enough parcel of land to make a commercial deal work. This is why you see five homes along a busy street all for sale at once and the zoning is commercial. This is because in order to be approved for commercial development, there must be a large enough parcel to make the commercial development work.

Usually, for mixed residential zoning, these areas are close to town or close to other apartments or business in the area. I’ve appraised several of these types of property. Many times, advertising the zoning as mixed use is enough to sell the home for more just because it may appeal to that specific buyer that wants to live in the same home and run a business out of the home. One home that I appraised offered a living area on the main level and a daylight basement offered office buildings that were rented out.

My understanding is that some banks that specialize in residential zoning will not loan money on mixed use properties. This, of course, is a downfall, if you’re trying to get a residential loan. Some buyers will not want to use their residential home for office use. This will limit the number of buyers that may want to buy your home.

So, will commercial zoning increase your property value? If your home is a residential home with the best use as a residential use, commercial zoning may decrease your home value and make it difficult to get a loan and make it difficult to sell, because you’ll be located on a busy street. If your home is residential use and the highest and best use is to build a commercial structure, most often, your land used as commercial use will be more valuable than your home used as residential use.

So, the moral of the story is to keep an open mind on these types of properties. I looked at some homes the other day where the home is an older residential home with a larger lot. The zoning can be switched from residential to commercial for $1500. Residential homes with larger lots with similar zoning were selling for $350,000 to $400,000. Residential homes that have been switched to commercial zoning were selling for $500,000 to $700,000. So for $1500 and some time, this would be a good investment for your money.

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Source by Tim D Page

Real Estate Deposit vs Down Payment

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When you’re selling your home, you have to be familiar with related real-estate lingo. You have to know the difference between a canopy and an awning; a mortgage and a loan; and most importantly, the difference between a deposit and a down payment.

Believe it or not, there are a lot of home sellers who think that deposits and down payments are one and the same, when in reality they are not.

A deposit is the money given or handed over to the owner when a buyer indicates a sincere desire to purchase the property being sold. It is a token amount that could be as small as a few hundred dollars, or as big as 5% of the total purchase price. The deposit can be returned when the transaction does not fall through for reasons beyond the control of the buyer, and can also be forfeited in favour of the seller. When the purchase pushes through, the deposit is credited to the buyer and forms part of his down payment.

A down payment or equity, on the other hand, can be considered as an initial payment on the property itself. It is given when the buyer has decided to actually purchase the house (unlike in deposit, where it is given when the buyer indicates a desire to buy the unit). The down payment is the total amount of money a buyer can give as a partial payment and is generally of a bigger value (10% of the total property cost, or more) than regular deposits.

It’s fairly easy to differentiate. Just remember that a deposit is smaller and, once the transaction pushes through, becomes part of the down payment. The total of these two, plus any outstanding balance, should be the agreed upon purchase price of the property.

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Is the Relationship of Dishonesty and Appropriation in the Offence of Theft Free From Uncertainty?

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Theft is defined in section 1 of the Theft Act 1968. Dishonesty is under section 2 of that act and it forms part of the mens REA for theft and Appropriation is under section 3 of the act and it forms part of the actus reus for theft. The problem is that there are many decisions made within these two areas on the law of theft which leads to a few uncertainties which I will be discussing in further detail in this essay.

Section 3 (1) states that appropriation is: "any assumption by person of the rights of an owner amounts to an appropriation, and this includes, where he has come by the property (innocently or not) without stealing it, any later assumption of a right to it by keeping or dealing with it as owner. " The rights of an owner also include the right to sell property. An appropriation by assuming the right to sell is demonstrated by the case of Pitham and Hehl (1977). In this case the defendant sold his furniture belonging to another person and was held to be appropriation. The offer to sell was an assumption of the right of an owner and the appropriation took place at this point. It did not matter whether the furniture was removed from the house or not. Even if the owner was not deprived of the property the defendant had still appropriated it by assuming the rights of the owner to offer the furniture for sale. The right to destroy property is also an owner's right.

The wording in section 3 (1) is "any assumption by a person of the rights of an owner". One problem that the courts have had to deal with is whether the assumption has to be all of the rights or whether it can just be any of the rights. This problem was considered in Morris (1983), whereby the defendant has switched the price labels of two items on the supermarket shelf. He had then put the item with the lower price tag in his basket and taken the item to checkout when he was arrested. His conviction for theft was upheld. Lord Roskill said that "it is enough … if the prosecution have proved … the assumption of any of the rights of the owner of the goods in question." This case made it clear that there does not have to be an assumption of all the rights and therefore got rid of the uncertainty of whether the assumption had to be only one of the rights of the owner or all of the rights of an owner.

Consent to appropriation has been an area of ​​law with has caused major problems. Most problems have surrounded the question of whether an item can be appropriated if the owner has given it to the person. The Theft Act 1968 does not state that the appropriation has to be without the consent of the owner. This point was considered in Lawrence (1971) in which an Italian student showed an address to the taxi driver and the journey should have cost him 50 pence but the taxi driver told him it was expensive so the student got out £ 1 and still he said It was enough and so the taxi driver helped himself to another £ 6. Both the Court of Appeal and the House of Lords held that there was appropriation in this situation.

The same point was again raised in Gomez (1993) and the effect of the decision in Gomez was that any removal of goods from a shelf in a shop is an appropriation. However, the complete offence of theft will only be committed if the person appropriating the goods has the required mens rea for theft. In this case the defendant, an assistant at an electrical shop was asked by the manager to supply goods (£ 16,000) in exchange for two building society checks that defendant knew were stolen. Defendant obtained authority from the manager to supply the goods. Defendant did not tell the manager the checks were stolen and he had not checked with the bank as he was instructed to do.

It was Held that there was an appropriation even though he acted with the authority of the shop manager. Lawrence was the appropriate authority on the issue of appropriation. The consent of the owner was irrelevant in deciding whether an appropriation had taken place. The defendant was found guilty.

There was a problem with the decision in Gomez and it was that did the decision made in Gomez extend to situations where a person has given property to another without any deception being made and it was raised in the case of Hinks (2000). In this case the defendant a carer of a 53-year-old man of low intelligence persuaded him to make gifts to her totalling £ 60,000 which was almost all his savings. Lord Steyn said that "It was held in R v Lawrence (1972) and DPP v Gomez (1993) that it was immaterial whether the act of appropriation was done with or without the owner's consent or authority."

"Appropriation" is a neutral word comprehending "any assumption by a person of the rights of an owner."

And so a person could appropriate property belonging to another where the other person made him an indefeasible gift of property, retaining no proprietary interest or any right to resume or recover any proprietary interest in the property. The defendant was found guilty.

Another effect of the decision in Gomez is that the appropriation is viewed as occurring at one point in time. This was shown in the case of Atakpu and Abrahams (1994). In this case the defendants hired three expensive cars abroad to sell in England. They argued that no appropriation had taken place in England and therefore the case was not triable in England.

It was held that goods once stolen could not be stolen again by the same thief, whether the theft took place in England or abroad. Therefore, the cars were stolen abroad where the appropriation took place.

In other words where a thief came by property by stealing it his later dealings with the property could not be an assumption of rights of an owner.

The first point that needs to be proved for the mens rea of ​​theft is that when the defendant appropriated the property he did it dishonestly. There is no definition of what is meant by this in the Act but in section 1 (2) it states that "… it is immaterial whether the appropriation is made with a view to gain, or is made for the thief's own benefit. "

The Theft Act 1968 does not define dishonesty though it does give three situations in which the defendant's behavior is not considered dishonest. They are; if he has in law the right to deprive the other of it, on behalf of himself or of another party under section 2 (1) (a), he would have the others consent if the other knew of the appropriation and the circumstances of it under section 2 (1) (a) and if the person to whom the property belongs cannot be discovered by taking reasonable steps under section 2 (1) (a).

It has been held in two cases Small (1988) and Holden (1991), that the fact that the belief was an unreasonable one does not prevent the defendant from relying on these sections. If the jury believe that the defendant had a genuine belief that he was under one of the three situations even if it were unreasonable then he would be found not guilty. In some situations the defendant may say that he is willing to pay for the property or may on taking the property leave money to pay for it. This does not prevent the defendants conduct from being dishonest as section 2 (2) states that 'a person's appropriation of property belonging to another may be dishonest notwithstanding that he is willing to pay for the property'.

The case of Ghosh (1982) is the leading case on what is meant by dishonesty. In this case the Court of Appeal set out the tests to be used. They said that dishonesty has both an objective and subjective element to it which are that was what the person did dishonest according to the ordinary standards of reasonable and honest people? and Did the defendant realise that what he was doing was dishonest by those standards?

In conclusion I think that there are many areas of the law which have indeed been freed from uncertainty; However I also think that there are still some areas of the law which need to be further developed so that true certainty and understanding of case based law can be understood of the relationship between dishonesty and appropriation

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How Not To Get RIPPED OFF Selling Your Gold Jewelry

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Read this before you sell your gold!

In this difficult economy, more and more people are selling their gold jewelry for cash. Have you seen the people standing out on street corners, spinning their "WE BUY YOUR GOLD" signs, beckoning you to their stores or booths?

There are a few things you need to know BEFORE you sell your broken and unwanted gold chains, earrings, bracelets, watches and rings. Below is the chart which shows how gold prices have skyrocketed in just one year:

What is your gold worth today?

So how do you calculate the price per gram weight on gold? It's a little complicated. When your gold is purchased, it is then sent to a refiner. The refiner has a lot of overhead expenses, such as pricey equipment for environmental restrictions (alloys can contain very harmful agents), acids, labor, etc. plus there are impurities also. Your 14K gold may not be exactly 14K gold. Unless it states "14K P" on the hallmark of your jewelry, it probably is a tad less than 14K. The "P" means Plumb, or exactly 14K. The refinery will typically charge a 12 to 15% fee for refining down your gold or silver.

Here are equations that we use and will typically work as the NET per gram price, after refining fees: 10K gold: spot price X.0119 = price per gram 14K gold: spot price X.0168 = price per gram 18K gold: spot price X.0220 = price per gram 22K gold: spot price X.02745 = price per gram

You can easily find the current price of gold (spot price) on the Internet. Today gold is about $ 1500 per ounce. That means 14K will be worth: 1500 X.0168 = $ 25.20 per gram to the person that buys your gold. A good price for you to get today for 14K gold would be $ 17.00 per gram.

What you need to know:

1. If your jewelry has a gemstone (s) in it, chances are you will be giving it to the gold buyer. Almost all of these buyers are interested in ONE THING – the metal. Some of them don't have a clue about colored gemstones. They usually know about diamonds, but very few know anything about colored gemstones. Some of these buyers will pay you their gold per gram rate for the gemstone, especially if it's small to medium size. It's easier for them just to weigh the entire piece of jewelry and pay you – besides, they're usually making a lot of money on the transaction, and can afford to do it this way. It may not be a good deal for you however. For example … let's say you have a 14K gold ring with a small blue gemstone in it. The gold buyer will weigh the ring and give you the price based upon the total gram weight of the ring, including the gemstone. That might great for you if that blue stone is quartz or topaz (less expensive colored gemstones), but what if it's Apatite, Zircon, Aquamarine, Spinel, Blue Diamond, Sapphire, Paraiba or Indicolite Tourmaline, … etc.? Any of these gemstones are very valuable, and it probably would be a good idea to remove the gemstone and either reset it in a setting that you will wear or sell it. When you are talking about gemstones, the weight is measured in Carats. The conversion from Carats to Grams (what your gold is measured in) is: 5 Carats = 1 Gram. So, let's say you have a 5 carat Paraiba Tourmaline and you choose to leave it in the setting. You will get a price of $ 15. per gram, so this Paraiba is worth $ 15. (1 gram). A little checking on the Internet will tell you that Paraiba can be worth upwards of $ 5,000 per Carat, or $ 25,000. (This is an extreme example, as Paraiba Tourmaline is copper-bearing and VERY rare, but it illustrates the point).

2. Let's say you want to have a gold buying party. All of your friends come to the party with their gold jewelry that they don't wear anymore and want that extra cash that their jewelry might bring. Did you do any price comparisons? There are a lot of people that put on these parties and make a fortune – on your jewelry. Do your homework! ASK THE IMPORTANT QUESTION – HOW MUCH WILL THEY PAY PER GRAM FOR Silver, 10K, 14K, 18K, 22K and PLATINUM jewelry. It's much better to use an established, local resource for this party. Ask about security. How many people will be there from the buyer's business?

3. As of this week, gold is at an all-time high, with the price for 14K to be at about $ 25. per gram. That means an HONEST Gold Buyer will purchase your 14K gold jewelry for about $ 15. per gram. That's a good price. Some of the people that are putting on gold buying parties in your home, or in their stores are paying $ 9. or $ 10. per gram – that's a ripoff! Just ask them how much they pay per gram, and comparison shop. This could save you hundreds of dollars!

4. What about Gold Filled, Gold Plated and Silver Jewelry? That is valuable too … same applies – ask the gold buyer what they will pay per gram, and price shop – it's worth your time.

5. Do not ever – I repeat – ever mail in your gold jewelry to anyone for conversion to cash. They can rip you off any number of ways, ie, underestimate the gram weight in their favor, etc. Once they have your jewelry, it's out of your control.

6. Be VERY wary of the new gold buying shops that are popping up everywhere. You will fare much better at an established store that has been there for many years. Whether it's a pawn shop or a jewelry store, I would give them your business. If their per gram price is less than their competition, I would give them the opportunity to match the price. These gold buying shops that pop up are typically a satellite store of a large business far away, are there for a short time and will severely hurt your long-time trusted local businesses.

7. Recently, there was a gold buying set up at a local Holiday Inn. They did a LOT of advertising, and there were a lot of people who brought their unwanted gold and silver to sell. I was SHOCKED at how people did not realize that they were getting ripped off, and did not ask what they would be paid per gram. It turned out to be $ 5.00 / gram. One woman had 63 grams of 14K gold (most people had more gold for sale). Because she did not realize she was being ripped off, she was thrilled with $ 315.00 she was paid. She did not realize that a fair price for her broken and unwanted jewelry should have been $ 1,008.00.

8. The current trend right now is Antique Jewelry. If you have really nice piece of Antique Jewelry, and you can't keep it, get it appraised by a reputable Jeweler – but don't tell them that you want to sell it (they may quote you a very low appraisal and try to buy it themselves). You might want to try eBay. You will only get wholesale pricing on the jewelry, but it will be better than the scrap prices offered.

9. Remember – the buying and selling of jewelry can be a lot like the car business. They talk "deals", and some of them employ the same selling tactics. If you are looking to purchase some new jewelry, treat your unwanted jewelry like a used car trade-in. Get the appraisal on the jewelry first, including the gram weight, then negotiate on the new purchase.

In summary:

• always ask what the buyer is willing to pay per gram, 10K, 14K, 18K, 22K, Silver and Platinum

• shop and compare prices

• never mail your gold for cash

• try to do business with a local merchant (Pawn Broker or Jewelry Store). If they offer less per gram, give them the opportunity to match the price from the pop-up gold buyer

• only use a reputable LOCAL source if you are planning to have a gold buying party; be security conscious and shop for the best price per gram

• determine what the gemstones are in the unwanted jewelry before selling it … if they are worth anything, remove them

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Source by Mariel Baker

Sell Flower Photos – This is How to Make Money Selling Flower Photos

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I sell flower photos on a constant basis through my home, photo selling business. It’s really fun, not to have to leave home to make money from photography.

Photography has always been a hobby for mine. I have always had a special preference for taking pictures of flowers. I easily get them sold as soon as I send them to my hungry photo buyers. It all started with me taking photos of the sunflower I had in my garden.

I remember how much I loved the way the sun flower glowed under the rays of the afternoon sun. I brought out my cell phone, which had a really simple camera inbuilt, and started taking pictures of the sun flower from different angles. I ended up with some really good shots.

One of the shots I took featured an insect landing on the flower. I especially love that particular photograph because it was really unexpected. That’s one of the things I love about taking photographs out in nature. You never know what to expect. Any thing could happen and these are the things which make every photograph unique.

You too can sell flower photos to buyers of nature images. Many of the buyers I sell to, need pictures of flowers on a daily basis. It basically depends on how much time you are ready to put into this. Those images of my sun flower earned me quite a handsome amount of money.

Photographing flowers has now become something I do every week. I can even sell photos of the same flower taken hours later. This is because nature is constantly changing, and the flower you photograph today looks different the next time you visit it.

Begin your quest to sell flower photos by learning how to sell such photos to well paying buyers. Try and capture different aspects of the growing process of a flower.

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Source by Johnny Page

Property Development – What’s an Entitlement and Why Do I Need it to Build?

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What is An Entitlement?

The definition of entitlement with regard to land development is the legal method of obtaining approvals for the right to develop property for a particular use. The entitlement process is complicated, time consuming and can be costly, but know what you can and can’t do with a piece of property is vital to determining the real estate feasibility of your project. Some examples of entitlements are as follows:

Entitlement Examples:

1. Zoning and zoning variances for building heights, number of parking spaces, setbacks. Your land use attorneys and zoning experts come into play here. My advice is to heavily rely on their expertise and follow their directions to avoid unnecessary delays in your approval process.

2. Rezoning. Depending on the current use allowed for the property, you might need to have the site rezoned which is a complicated process and sometimes cannot be done.

3 Use Permits. You may need to obtain conditional use permits and this goes hand in hand with zoning and zoning variances.

4. Road approvals. Do you need to put in existing roads? Who maintains the roads? Are there shared roads via easements? These are all questions that you need to have the answers to and be prepared to comply with in the regulatory process.

5 Utility approvals. Are utilities available to the site? Do you need to donate land to the city in exchange for utility entitlements? Again, you will need to comply with the municipality regulations and standards.

6. Landscaping approvals. The city planning and development agencies must also approve your design and landscaping. Your architect and engineers will be most helpful in this area.

Hire an Experienced Development Team:

The best advise is to hire an experienced development team of architects, developers, lawyers, project consultants, civil, soil, landscape and structural engineers and consultants at the onset to help you analyze, review, interpret and advise you regarding design studies, applicable zoning and code requirements, and maximum development potential of the property. Without an experienced team, it is extremely difficult and a lot of time will be wasted in trying to complete the regulatory process because the very nature of the regulatory process is so complicated.

Here is how the process works. First, remember to keep in mind that the process is very slow and frustrating and can take approximately 3 to 12 months or sometimes years depending on how complicated the project is. Part of the reason is that each city planner has different interpretations of their local rules. Today, approvals involve jurisdictions overlapping such as city, county and state and these jurisdictions do not communicate with each other. It is extremely crucial that you establish good working relationships with these planners to obtain your approvals. Again, this is why you need to work with a development team that has already built these relationships with local staff of the local jurisdiction where your property will be developed. These relationships will streamline and help to expedite your approval process. Your experienced team of experts will be able to negotiate issues for you and eliminate additional requests by the local jurisdiction to avoid further delays in obtaining your approvals.

Regulatory Process:

Majority of development projects must go through certain aspects of the entitlement process and some projects will be required to go through several public hearing processes for approval depending on each jurisdiction’s rules. To begin, commercial development of land requires a review and approval from the local Development Review Board or Planning Department Review Division. Each municipality has a different name but the functions are similar.

  1. The process starts with obtaining site approval from the local Planning and Development Department. By contacting the local Planning and Development Department Review Division, your expert team will then put together a land use pre-application which complies with the codes of that particular jurisdiction. By complying with the codes, this will eliminate additional requests by the jurisdiction, further review and extension and unnecessary delays of the approval process.
  2. Next a meeting date will be set. You and/or your representatives will meet with the Planning Department to discuss the proposed project and review process. The process includes approval of your site plan, elevations, colors, landscaping, vicinity map, etc. Environmental information will need to be submitted also. There is usually a fee that accompanies the application. The fees vary from jurisdiction to jurisdiction.
  3. If for some reason your site plan is denied, you can appeal to the City Council. The appeal process varies from each jurisdiction.
  4. Once you obtain site approval, then you will need design approval, master use permits. The design approval process is where your architect will design the building shell, core layout, exterior appearance, building height, site layout, landscaping concepts, traffic impact, site access and utility layouts and submit them for approval.
  5. Neighborhood hearings are generally required for all general plan conditional use permits. You may be required to send out written notice or post information on the site. Normally the City will send notices to the neighbors also. Signs should be placed on the property, and an open house meeting is generally held. Your development team will be instrumental in advising and assisting you so that you have a higher probability of achieving success in obtaining neighborhood approval. Be prepared, even if you comply with the regulatory process codes and regulations, there is always the possibility that the neighborhood may have their own agenda and that the hearings and decisions may not be favorable to your project going forward. This is where your attorneys and the rest of your development team’s expertise and participation are crucial.

If wetlands are located on the property you will need special documentation that states whether the Wetlands Act applies or not. If it does, either it will result in significant or insignificant impact as granted by evidence of a permit. Sometimes it is best to set aside or donate the wetlands portion of the property and avoid development issues. Your development team will be able to advise you on the best course of action once they have assessed all the information and reviewed the reports.

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Source by Bart S Pair

The Purpose of an RSS Feed – In Simple Terms

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An RSS Feed is a web format used, to publish current information in real time to other websites. You are able to set up an RSS feed on your site which will include automatic feeds from other websites or any specific page, topic that interest you.

Visitors to your website can see updates from other websites in real time from the RSS feed. It is also useful to provide notification of anything which is happening. A RSS feed can be pretty handy for those who want up-to-date information from their favorite site or to be able to combine all their favorite sites so they can see them all in one feed.

RSS feed is actually great tool for business owners. A business owner could use feeds to keep his visitors updated on current, updated information of any industry. Visitors would be able to see it on the feed and do not need to leave the website to read it.

News websites make good use of RSS feeds to draw in customers. Many people out there subscribe to a news site to keep themselves updated on current events and to have news within easy reach. It is a way to stay informed. You can get all the information you need on one page, without going from page to page or site to site. It is like having someone constantly feeding you the latest information on what is happening around the world.

Be rest assured as well that your readers or subscribers would not be overwhelmed with details. The feed would provide just the right amount of details. If a reader wants more details, they could simply click the item and go to the website where the information is coming from.

There are sources of information that can be accessed through RSS feeds:

* Forum feeds
* Blog feeds
* Article feeds
* News feeds

Feeds are particularly useful for broadcasting news on many subjects like houses for sale, upcoming events, auctions, legal items, job listing and entertainment. The possibilities of their usage are practically endless.

When people subscribe to your feed, they know that they can rely on you to provide them with interesting information and to keep them updated on all the information they want to know. You, on the other hand, could use RSS feeds to post items of interest (or information which adds value to others) which you want to be sure people are aware of. Of course, visitors have the option of opting out of the feeds anytime that they want.

Use RSS feeds as a strategy to market and to supply the public with value-added information.

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Source by Louis YP Ng

Understanding Commercial Real Estate Leases

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When you list a property to sell or to lease you need to understand the type of lease that you are dealing with. There are definite differences in leases at all levels and hence a lease must be read fully before proceeding.

Leases are the foundation of property performance. The best salespeople understand the leasing process and the high value that it brings to the future sale. A good lease can enhance a sale price when the time comes.

As mentioned, there are many different types of leases, but there are some rules and common basic elements which will allow you to understand the lease or the potential lease that you can apply to a property. It's all about interpretation of the lease document and that means that you must read the document.

Professional Property Services

After many years of working in the industry, I have seen the best people set the foundations of success around the leasing process. This means that they have grounded themselves with investment skills and knowledge by leasing property for a few years. So let's now look at how you can move down this path of skill development regards leasing.

The better you negotiate and the more fully that you interpret a lease, the more professional you are and you appear to the people that you work with or serve.

You can and should add strategic value in the client in every lease that you negotiate. A lease is not just a document to allow a tenant to occupy premises; It is a tactical cash flow that can attract to or detract from the property.

The way that leases work for the property investor will solidly impact on the property and its performance for the duration of the lease. As you work with tenants or buyers for the property, the type of lease that applies will also impact on the negotiations. Let's look at the main lease types and expand on some of the most relevant issues for you.

Gross Lease:

Under a gross lease the tenant pays a full rent that includes a component for outgoings and the building owner will pay all building operating costs (also known as outgoings). This means that the lease itself will have rent review provisions that escalate the gross rent only.

In a lease of this type the landlord needs to know that they can maintain the building outgoings to predictable levels over the lease term as the landlord holds all the risk of paying the outgoings. The levels of rent review escalations in the lease must be expected to cover or exceed the escalations in the level of outgoings over future years otherwise the landlord will loose money.

Gross leases are common in retail and office property. Your choice in using this rent and lease type should be balanced against the predicted levels of outgoings costs and future changes for the subject property.

Obviously an older building will have steady escalations in outgoings above that of a building that is younger. As a building ages and deteriorates, the gross lease method becomes less attractive and more risky for the landlord.

Semi Gross Lease:

In this type of lease the landlord is initially setting a gross rent which is paid by the tenant and is reviewed over the term of the lease, however the landlord also gets paid some regular money for outgoings that increase under a specific calculation. This is how it is done:

The landlord specifically recovers the escalation in outgoings above a nominated outgoings base year. This base year is selected at the start of the lease and is usually the last reconciled outgoings year prior to lease commencement, which is usually the previous financial year to the start of the lease (because it is fully reconciled and known as a set value) .

As the new semi gross lease proceeds through its term, the tenant has to pay the escalation of the outgoings above the nominated base year. For example, if in a lease the base year for outgoings purposes was set as the financial year 08/09 and the known level of outgoings for that year was $ 85m2 pa, then in the financial year 09/10 when the outgoings escalate to $ 97 m2, the tenant will have to pay outgoings of $ 12m2pa. As the lease ages and in the financial year 12/13, the outgoings could be $ 108m2, and in that case the tenant will need to pay $ 23m2.

In this type of lease the base year is set and the outgoings 'gap' will likely increase significantly as the lease gets older. This type of lease is good for the landlord with younger properties, in that it protects the landlord against the escalation of the outgoings above the base year yet still allowing the landlord to use a gross rent as the foundation for rent charge and collection.

It is common in this type of lease for the base year of outgoings to be updated at the time of any market rent review during the lease. Market reviews in this type of lease would be undertaken if the lease was lengthy (over 3 years) and so the market rent review would occur say each 3 or 4 years.

It is not necessary to do a market rent review at any particular time in a lease as the matter is negotiable at lease commencement, however be aware of the fact of re-setting the base for outgoings and the impact it will have on the landlord.

As a further interpretation of this type of lease you should look at the type of outgoings that are recovered in the calculation. It is not unusual for 'lease savvy tenants' such as the government or large corporations to nominate the type of outgoings to which the base year escalations will apply.

Naturally it is better for the landlord to recover the escalation in all outgoings in a building above the base year, however the government and corporate tenants are well known for limiting the calculation to rates and taxes escalations.

Clearly a lease is a product of a negotiation, but you need to understand what can be done and then get the best lease deal possible for your client.

Net leases:

The term net lease is firstly generic; hence you should be aware that there are 3 types of net leases within the category. So let's look at them.

Net lease: In this lease the tenant pays some or all of the rates and taxes for the property or premises.

Net-Net lease: In this lease the tenant pays the rates and taxes as nominated in the 'net lease' method but they then also pay for insurance premiums for the property and premises.

Net-Net-Net lease: In this lease the tenant will pay for the rates and taxes, the insurance of the premises, and they will then also pay for repair and maintenance costs associated with the premises.

So what lease type is the best for the landlord? In most cases the Net-Net-Net Lease is the way to go, however it is a matter of if the tenant will accept and sign that type of lease.

As a point of negotiation it would be wise in any Net Lease, or a Net-Net Lease to have a higher start rent for the landlord and better rent review provisions that offset the lesser outgoings recovery for the landlord.

Net-Net-Net leases are common on properties that are fully occupied by one tenant. This is method of lease structure is widespread in industrial property and office property.

Percentage lease:

This type of lease is more commonly seen in retail property as the calculation of rent is linked to the trading figures for the tenant. In most leases of this type the tenant firstly pays a fixed base rent that is geared to some rent review method, and then the tenant also pays additional rent that is calculated from their turnover or sales. As the tenant improves its trading, then the rent escalates.

An essential part of this lease structure is to obligate the tenant to give you accurate and regular audited turnover figures. The lease has to support and enforce the audit process for the landlord. Monthly turnover figures are the best way to go in this, with the tenant providing the audited figures to the landlord by say the 7th of the next month. The landlord then charges the turnover rent to the tenant based on the audited figures.

This type of lease is also seen in new shopping centers as new tenants stabilize levels of custom and sales, in supermarkets for the same reasons, and in hotels or motels. The basic strategy with turnover rent is to give the landlord some cash flow from the establishment of a base rent from the start of the lease, and then to collect additional rent as the property and the tenancy becomes more successful in generating sales and customers.

Spell it out

In all leases, the recovery of rent and outgoings must be clearly set out to avoid debate and disagreement with the tenant. As you can now see, the selection of the lease type that you are to use on a property will significantly impact on the future for the landlord. It will also impact on any sales situation.

It pays to know what is going on in the market regards lease and rent types so that you do lease deals that are similar to or better than the rest of the market. The right lease structure, document, and rent will help sell properties at better prices.

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Section 8 Side Payments

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Through the years we have had several Section 8 tenants attempt to make a side payment agreement with us in an effort to entice us to accept their vouchers. We declined.

What are Section 8 side payments?

Let’s assume the asking rent for a unit is $2,500. The Housing Authority has authorized a maximum amount for the unit of $2,300. The owner and the tenant make an agreement that the tenant will pay the additional $200 outside of the agreement with the Housing Authority. This is considered a Section 8 side payment. It is illegal.

By making a side agreement the tenant could jeopardize losing their voucher. However, the Housing Authority has come up with a very creative way for the tenant to report the additional payment while remaining anonymous. The result could be quite lucrative for the tenant while extremely costly for the owner who participated.

In May 2014, the Housing Authority of Santa Clara County addressed a letter to Section 8 voucher tenants entitled „Confidential Rent „Side Payment“ Survey.“ The letter encourages the tenant to take a survey provided by Project Sentinel to assure their answers are kept confidential and their housing voucher status is protected.

The letter is posted on the Project Sentinel website at http://housing.org/. Project Sentinel does not share the survey information with the Housing Authority.

The survey consists of three questions:

1. In the past 6 years, have you (or anyone in your household) paid rent that was higher than the „tenant rent“ amount listed on your most recent Housing Authority rent portion letter?

2. Currently, are you (or anyone in your household) paying rent that is higher than the „tenant rent“ amount listed on your most recent Housing Authority rent portion letter?

3. At any time in the past, has a landlord requested or collected rent payments that were higher than the „tenant rent“ amount listed on your most recent Housing Authority rent portion letter?

If you’re a landlord whose tenant can answer „yes“ to any of these three questions you should be concerned.

According to Project Sentinel, a tenant may be awarded a refund of the total side payments made to owner. In addition, the tenant could be awarded $1,650 to $3,300 for each month they made a side payment to the owner, regardless of the amount of side payment. Refund payments can go back as far as six years.

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Makler Heidelberg

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Source by Sandy S Adams

How to Become a Famous Real Estate Agent

Immobilie bewerten, Immobilie Wert, Immobilienrechner, Verkaufsrechner, Immobilienwertermittlung Tel: 06227-399170 Handy: 0176-2116-9990 eMail: info@heidelbergerwohnen.de Internet: www.heidelbergerwohnen.de

So, you have taken the classes and you have now become a real estate agent. Or, you already are a real estate agent. Now that you are, or already are, a real estate agent, how do you become a famous real estate agent?

Before getting into the specifics of becoming famous, you need to sit back, kick up your feet and decide on your niche. Your niche will be the springboard from which you launch your campaign to become famous. Is the luxury market your thing, or maybe being a buyer's agent is more your cup-of-tea. You need to decide where your strengths lie and then you'll be able to better focus your energy and hone your expertise.

Once you have defined your niche, you are ready to proceed with the thing that will make you famous in your niche.

It has been said of late that 80 percent of house hunting begins on the Internet. If you are to become a famous real estate agent, you must become Internet savvy. Most major brokers nowadays provide a website for their agents. It would be a good idea if you sought out training to make your website stand out from the rest.

In addition, obtain an inexpensive web domain from one of the online providers like GoDaddy. You can name it some creative name that will make people find you and help them remember it when they need to get in contact with you.

Branding is the key to standing out from the rest. You must have a brand that makes people remember you. You'll want to link your branded domain name to your website with your broker to direct people to your listings and information. Also, find ways to use your brand to make it something that sticks in people heads. Association is a common method human beings use to retain memory. Associate your expertise or name with something related to real estate that people will remember. You want your brand to stand out from the rest.

Along with providing a web address for each agent, some brokers even provide training for their agents to learn how to set up their websites to make them individual and stand out. You'll want to either attend training or hire someone to develop your website for you.

Either way, you'll want to get your website up and running with splashy graphics and links that lead people to useful information. Make sure you insert a quality picture of yourself. Sales have been lost due to an amateur picture.

YouTube is a website where you can post videos you've created of useful real estate information. Along with posting it on your blog, some information you might want to consider teaching about on video is the rebate first-time homeowners can receive due to the approval of the federal stimulus package. Information like that is considered very valuable and would be visited many times over if you provided a professional presentation of it.

You'll need a blog on your website that provides useful information for potential homeowners, along with enabling readers to comment on your website. Comments are sometimes quite useful in finding out what your audience is really interested in. Provide links to helpful and needful information and provide stellar aesthetics to create interest in your website. Along with the blog, make sure you actually create blog posts on a regular basis that are of great importance to your audience. This will create interest and keep them coming back for more. Establish a RSS feed to enable readers to subscribe easily to your blog. If you do not know what that is, the webmaster you hire can create it for you.

You'll also want to consider signing up for several social networks, like Active Rain, Twitter, Facebook, MySpace, Digg, LinkedIn and others. Make sure you include your website link on your profile of all social networking sites of which you become a member, along with your branded name.

While creating a stunning website, you'll want to discover and decide how you will distribute your listings via the web. You want your clients to be wowed at your ability to expose their listings.

The last thing you'll want to take care of is a means to determine your return on investment (ROI). You need a good method to track your marketing and advertising expenditures, so that you will know what your ROI is. Make sure you include a counter on your website that tracks unique visits to your site, along with some way to analyze the traffic your site receives in order to improve results.

Now that you've found your niche, become Internet savvy, have your website up and running and are experiencing some notoriety, make sure to keep track of how your clients found you. Ask them. Also, ask them if they have seen your website.

As you continue to promote yourself aggressively with electronic media, you will eventually become what you've always dreamed of – a famous real estate agent!

Immobilienmakler Heidelberg

Makler Heidelberg

Der Immoblienmakler für Heidelberg Mannheim und Karlsruhe
Wir verkaufen für Verkäufer zu 100% kostenfrei
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Source by Ki Gray