College campuses are attractive places for people considering investing in real estate. Since there are new students who need housing each year, investing in property near campuses tends to be less volatile than investing in other areas. However, there are also possible downsides to investing in off-campus housing, so it’s a good idea to explore the pros and cons before making a decision.
The Pros of Investing in Off-Campus Housing
Because many students, staff and faculty need housing near their college campus, investing in these areas can offer stable opportunities for some extra profit. Most colleges cannot provide on-campus housing to all of their students, so there is usually demand for off-campus housing. As long as the college itself continually draws students in, each year will bring a ready pool of tenants. Because of this, real estate near campuses tends to be less risky than properties elsewhere.
Students also like to have nearby places to eat, shop and spend their free time. The good thing is, young people are a popular target demographic for businesses, attracting all sorts of amenities that may raise the property value of nearby real estate. This means rent prices tend to appreciate after a few years as the local economy expands with the rapid population influx.
Sounds like a win-win situation for everyone, right? Even so, there are a few points of caution you should consider before making any decisions.
What to Watch Out For
It’s important to consider the nature of the college’s schedule when looking at off-campus housing. For instance, even though the flow of prospective tenants will usually be steady, the unavoidable downside is the high turnover rate as older students graduate. Summer and winter breaks will see some turnover too, as many students like to go back and live with their parents or families when school is not in session.
Don’t forget that most of your potential tenants – being students – will be renting for the first time. Students are young and full of energy, and infamous for partying. This is great for stimulating the economy, but keep in mind that this demographic has a higher chance of causing property damage. The toll can always be mitigated by planning for a security deposit.
As with any real estate investment, there will always be a few negatives that go along with the positives. Even so, property near college campuses can offer great opportunities for those looking to make some profit. They can be an especially great idea if you have a child who you might like one day to send to college – these investments can offer the profit that can eventually pay his or her tuition.
Indianapolis investment properties come in all shapes and sizes. Whether you are a seasoned professional or just starting your career in commercial real estate, lucrative opportunities abound. The trick is being able to identify Indianapolis investment properties that fit your budget, and yield revenue that goes beyond simply breaking even.
Indianapolis Investment Properties For Beginners
For those new to the commercial real estate arena, finding an investment property in Indianapolis may seem overwhelming. There are so many to choose from, but finding the right Indianapolis investment properties is simply a matter of lining up specific criteria. First, you need a budget. Figure out how much you are willing to spend to purchase a property, and how much you are willing to put in for renovations. When choosing Indianapolis investment properties, do not forget to check out other comps in the area. This will give you an idea of how much you can sell or rent out a property for while still being competitive. All of these variables intersect at a point where your finances and return on investment should be in order to make a successful property investment in the Indianapolis area.
For Seasoned Professionals
Established professionals in the commercial real estate market have a wider range of properties to choose from in Indianapolis. Fix and flip projects and multifamily rentals will always bring in a reliable source of income. However, there are some local property investors who are aiming just a bit higher. Office buildings, retail space, shopping centers, hotels, and motels are the next step up, and bring in much more revenue than residential investment properties. Whether purchasing already existing Indianapolis investment properties, or building a development from the ground up, it is important to scope out the area to see if the potential clientele exists. It is also important to see what financing options are available, since traditional lenders still view commercial real estate markets as “too risky” for loans.
Financing Investment Properties
There are many financing options available for Indianapolis investment properties. For beginners, a combination of conventional loans, SBA loans, or bridge loans can cover expenses efficiently and affordably. For larger transactions, mezzanine financing, equity loans, blanket loans, and even construction financing may be in order. At Liberty Commercial Capital, we offer a wide range of financing tailored to property markets in Indianapolis, IN. Contact our offices today to get started.
10 Apr / 2018
If you’re in between tenants at your rental, think about what work could be done there to maximize its income. Choosing which upgrades to make to your rental property can mean the difference between your property being rented or your property sitting empty. Choosing the right projects may attract tenants and keep future maintenance costs down.
Nothing will make a room seem clean and fresh like a new coat of paint. Paint is usually inexpensive and easy to get, and painting can be done in a day or a few days. Choose light colors to make rooms seem bigger and brighter. If you can’t paint all the rooms in the rental, consider painting rooms that prospective renters will see first: the entranceway, living room, kitchen, etc. Don’t forget to paint the trim and clean up any paint spills. Renters will generally be drawn to work that looks professional.
New carpets can also give a sense of newness and good value. Bedrooms should be the first place to think about for new carpeting. Tenants will usually appreciate clean, fresh new carpet in a place where they spend so much of their time. Choose a neutral color that won’t show wear and take advantage of stain-proofing options carpet suppliers offer. This can help keep down your costs later when cleaning the carpets.
New homeowners love a new kitchen, and so do renters. However, you don’t need to fully renovate the kitchen of your rental property to give prospective tenants what they want. Simply replacing old appliances with stainless steel ones can give a high-end feeling to the kitchen. Many home repair or appliance stores offer great deals on stainless steel models. Fresh paint and new laminate flooring can also perk up the kitchen, all without changing the floor plan.
Add Storage to Add Value
Renters come with stuff, and they need a place to store it. If you can carve out a storage room or add some shelving to a closet, you increase the amenities of your rental. Securing outside storage with locks and security gates often further enhances the value and provides a strong sense of security to tenants.
Little Things Add Up to Big Value
Don’t think you have to only concentrate on larger projects. Details matter too. Makes sure windows, toilets and other fixtures are in proper working order and look good. Change the locks and outdoor lighting.
Projects both big and small can improve the appeal of a place. Good maintenance practices can help your rental property show as well cared for and secure, something every renter wants.
11 Mar / 2018
For many budding entrepreneurs, the costs associated with getting a business off of the ground may be mind-boggling. There can be a dizzying array of expenses that can be completely foreign to a new business owner – novices and veterans alike. While most business owners have ideally allocated sufficient funds to get their businesses going, they can be quickly hit with the reality of just how liquid of an asset cash is. This causes many business owners to seek out credit for additional capital. That said, critical financing mistakes may potentially exacerbate an already trying situation. Preparation can help to circumvent such missteps.
Seeing the Whole Picture
One of the first errors that many novice business owners make is that they fail to go through and determine their monthly expenses. Employee salaries, expenses associated with a brick-and-mortar establishment, vendor invoices, and other associated costs can quickly decimate the business owner’s startup capital. Simultaneously, new businesspersons may miss the boat when determining how long their business can survive on their initial startup assets while building up a revenue stream. Without knowing these two critical pieces of information, the inevitable reactive financing to cover an unexpected emergency may come as too little, too late.
These financing mistakes can collectively be sidestepped by remembering that knowledge is power. Business owners need to know what they have going out on a monthly basis, as well as how long they can survive on the current assets absent incoming revenue. They also should attempt to line up some sort of financing in advance of the unexpected calamity to potentially avoid premature closure.
All streams of finance are not created equally. Some loan types can carry lofty interest rates, while others may be more difficult to obtain than others. Some loans may be processed and disseminated quickly, whereas other loan types and/or loan servicers may have a lengthy, dilatory process to navigate before funds are dispersed.
Failing to do the homework on the financing options may lead to making greater financing mistakes. After all, that funding may not come through until the storm was (hopefully) weathered. Also, if entrepreneurs are careless with the terms of the loan, the crippling financing costs could add insult to injury. While credit cards may assist in a pinch, businesspersons should try to avoid the habit of swiping to solvency, as that can exacerbate hardships.
Business owners, from first-time startups to veteran entrepreneurs, should understand their numbers and do their homework. These two acts of preparation may help entrepreneurs dodge common financing mistakes borne of acts of desperation.
Indianapolis Business Loans: Thinking Outside Of The Bank
Small businesses have been on the rise throughout Indianapolis, IN. From home office operations to franchises, manufacturers, and everything in between, entrepreneurs are carving out a strong foothold in the local economy. However, finding the right financing to launch and grow operations can be challenging, especially in situations where taking on more debt is not the preferred route. By thinking outside of the bank, some savvy entrepreneurs are finding Indianapolis business loans that don’t place any debt on the books.
Indianapolis Business Loans For Working Capital
There are a number of alternatives to traditional Indianapolis business loans, which provide working capital without debt. Invoice factoring offers a fast turnaround on receivables so small businesses can get access to revenue without having to wait on staggered payment schedules. Merchant cash advances provide working capital without debt while giving Indianapolis entrepreneurs the flexibility they demand from repayment terms. There are even unsecured lines of credit designed specifically for new and small businesses in the Indianapolis area without requiring collateral. All of the aforementioned options are debt-free, and offer a reliable source of working capital without involving the red tape of traditional lending institutions.
Indianapolis Business Loans For Growth
Looking beyond the bank, Indianapolis business owners are taking advantage of the benefits offered through purchase order financing. Purchase order financing is a debt free source of growth capital that can be arranged quickly for time-sensitive opportunities. When businesses want to take on a large client or complete an unexpected order, purchase order financing is the ideal solution. The advance in capital is used to cover the cost of production. When the order is completed, the financing is rolled into the invoice. The customer pays the balance owed and the business takes the remainder as revenue. Larger orders yield more revenue, thereby allowing Indianapolis businesses to grow rapidly without taking on debt. Local entrepreneurs can take on big clients without having to scramble for capital to cover their increased overhead costs, or losing orders to larger competitors.
Learn More About Alternatives To Traditional Loans
Liberty Commercial Capital is dedicated to providing solutions to business owners in the Indianapolis area. If you are a local entrepreneur and you need capital to sustain or grow operations, contact the experts at Liberty Commercial Capital. Our team specializes in thinking outside of the bank to provide fast and affordable financing tailored to the needs of our clients and partners. Contact us today to learn more.
Loans & Financing for Rental Properties in Indianapolis
For investors who are new to the real estate markets in Indianapolis, rental properties are probably the most accessible method for generating revenue. Indianapolis rental properties offer a number of advantages to commercial real estate investors which are often overlooked.
Indianapolis Rental Properties Provide Steady Revenue
Fix and Flip Loans & Financing
Selling properties through fix and flip projects can yield a very high amounts of revenue. However, houses do not always sell on a weekly, bi-weekly, or even monthly basis. Buying and selling is not something you can set your watch to. Indianapolis rental properties, on the other hand, generate revenue on a monthly basis. Investors even have the option to sell rental properties at a later date as a means of “cashing out” of the landlord business.
Indiana Rental Properties Pay For Themselves
The point of owning rental properties is to generate a passive income with little oversight. Currently, single family rentals are not getting much traction in the Indiana property market. The more units a property has available, the more revenue it can generate. Most investors tend to take a very pragmatic approach to handling revenue. Typically, rent from one unit will go to cover mortgage payments, while the rest goes into the bank account. In a short period of time, the property will pay for itself, and then everything from that point on is pure profit.
Rental properties offer a number of tax advantages to investors as well. Improvements and repairs can be claimed as tax deductions. Owner occupied rental properties offer Indianapolis real estate investors additional benefits as well. Indiana may also have tax incentives for real estate investors, because rental properties bring in people who will be spending money locally, thus increasing revenue for the state.
Financing For Indianapolis Rental Properties
There are a number of financing and loan options for Indianapolis rental properties. A combination of conventional loans and bridge financing can help investors purchase, renovate, and reconfigure homes into multifamily rentals. SBA loans can be used for owner occupied rental properties. Blanket loans are very useful when making improvements to multiple rental properties all at once. Larger financing, such as HUD and FHA loans, are ideal for specially-designated multifamily properties.
Liberty Commercial Capital provides financing solutions for Indianapolis rental properties of all sizes. Whether you are purchasing your first investment property, or are handling multiple rentals at once, we will work with you to create a financing strategy tailored to your needs. Contact us today by email or by calling (317) 569-1110.
A brand-new business venture brings with it a variety of emotions – excitement, enthusiasm, and passion, but also uncertainty, fear, and hesitancy. After your venture has an established foundation and gains some traction and momentum, it may be time to start the process of incorporating your business.
You spend business hours (and often early mornings and late nights) creating product, establishing a supply chain, marketing, interacting with customers, and completing many other tasks, so researching the requirements for incorporation will likely be low on the priority list. Unfortunately, there are myths and misunderstandings regarding the legal implications for small businesses. This can cause a delay and perhaps even prevent business owners from pursing incorporation.
There are a few foundational principles to remember when considering the process of incorporation. First, it does not have to be complicated. There are incorporation service companies you can hire to help with proper preparation and filing of documents for incorporating your business. While some small business owners complete the incorporation process on their own, there can be a greater risk of error if you do the work yourself, because the daily responsibilities of your business will generally naturally consume most of your time and energy.
Second, it does not have to be expensive. Any funds spent to legally recognize your small business will often be well-invested monies. Incorporation can be a wise and worthwhile investment that boosts the overall stability and growth of your business. Although legal formation results in annual compliance fees, you can receive tax breaks and your risk of being audited may be much lower.
Third, it is not required. You can run a successful small business without being incorporated. That said, incorporating your business may be the smartest professional move for a growing enterprise. There are many benefits, including the fact that official legal formation increases your credibility with customers. You can separate your personal assets from your business assets and safely protect both. If you desire to establish investors, providing a formal business structure gives clarity to where, why, and how their capital investments will be used.
Finally, it does not have to be time-consuming. Your time is inevitably stretched thin as an entrepreneur working to establish and grow your small business. The process of incorporation can be daunting and seemingly not worth the time and effort that must be spent on the required research and paperwork. Find a filling service company that assists startups to help make the process easier.
If you are considering incorporating your business, look for a company that specializes in this area to help you. This will allow you to get back to the work of running your organization!
09 Jan / 2018
Indianapolis CRE markets are rife with opportunities for ambitious investors and developers. However, there are two major methods of generating revenue through Indianapolis CRE properties, and many people often get caught up on which is better.
Buying And Selling Indianapolis CRE Properties
Certainly buy and selling Indianapolis CRE properties is one of the simplest methods, and with a potentially high monetary yield. Local commercial real estate investors purchase Indianapolis CRE properties at well below market value, and then restore them to greatly boost the selling price. Additionally, some property developers will build units from the ground up on vacant land and sell them as condos, single family houses, or office space, depending on the designation.
Renting Our Indianapolis CRE Properties
For those seeking steady revenue, renting out commercial properties may be the solution. From multifamily residences to office space, motels, hotels, and more, renting out property space yields revenue on a monthly basis. While rentals properties may not yield the one time revenue that selling a property does, the revenue from rentals is steady, and ca be multiplied by the number of units available. In some cases, when sellers are waiting for local property markets to increase in value, they will rent out their properties until the right buyer comes along.
Financing Indianapolis CRE Properties
There are a number of methods available for financing commercial real estate. SBA and conventional loans are widely used for purchasing properties. Bridge loans are ideal for covering time-sensitive expenses on renovation projects while larger loans are still in the pipeline. Construction loans provide working capital to ensure there are no delays on large projects. Blanket loans provide capital to make improvements to multiple properties at once, instead of taking out a separate loan for each property. Instead of taking on debt, some Indianapolis commercial real estate investors may opt for mezzanine loans, because of the equity component. Still others use CMBS conduit loans to acquire properties and save money in the process. Of course, there are more creative methods as well, such as seller-carry financing, where the property seller finances the purchase, with an agreement so that the buyer pays directly to the seller over a certain period of time.
Liberty Commercial Capital Finances Indianapolis CRE Properties
At Liberty Commercial Capital we specialize in financing Indianapolis CRE properties. From first-time investments to large construction project, and everything in between, we provide solutions tailored to the needs of our clients to ensure success. Contact us today to learn more about how we can help you.
Is your office inundated with paper clutter? Have you wasted hours trying to find the warranty for your printer or the lease agreement for the company car? If all you’ve managed to accomplish during your frantic search is to send precarious piles of electric bills and bank statements fluttering to the floor, maybe it’s time to give all that paperwork a good spring cleaning!
Spring Cleaning Tips
Consider that you have many kinds of documents filling your file drawers and covering every flat surface in your office. You realize that some of these papers are more important than others. You need to organize them, but where do you begin? As with everything in your small business, you should start with a plan.
First, determine what you need to keep and how long you need to keep it. An internet search can help you with those decisions, but here are some general guidelines. Payoff statements, year-end statements from bank and investment accounts, valid warranties, and personal items such as passports and wills are all examples of documents to tuck away for more or less permanent safekeeping. Other paperwork fits into a hierarchy of retention. Tax records involving a deduction for a bad debt or a loss claim should be kept for at least seven years. Keep receipts for business expenses, medical bills, and tax returns for three to seven years. However, utility bills and monthly statements need only be kept for one year. The same goes for credit card bills and pay stubs.
Next, get all that paper out of sight! Once you have a good idea which documents you plan to keep, you should categorize them and file them in labeled folders – or in a locked safe, if warranted. Choose a filing system that makes sense to you. Organize your files alphabetically or functionally. Use different colored folders or tabs for ease of retrieval. Make it a habit to file daily, or at least weekly, to avoid those unsightly paperwork pileups. You may even want to try an e-filing system, which can be a particularly good solution for a small office!
Finally, properly dispose of whatever you don’t need. Invest in a large capacity cross-cut shredder, and use it every day. Not only will you be able to stem the tide of junk mail, thus freeing up some of that desktop space, but you’ll find it easy to scrap the oldest month’s phone bill as you file the current one.
Start with a plan, figure out what to keep and what to shred, and keep on top of documents as they come in. You’ll keep your file folders from bulging, and you’ll have a much faster paperwork cleanup job next spring!
15 Dec / 2017
The market for Indianapolis investment properties is expanding, and becoming more accessible to private individuals than ever before. However, for those starting out their careers as commercial real estate investors, the selecting and appropriate financing can seem overwhelming. We have put together a handy guide to help you identify which Indianapolis investment properties are right for you, and how you can finance them to start generating revenue.
Defining Indianapolis Investment Properties
Indianapolis investment properties span a wide range of building types. Retail space, motels, hotels, offices, industrial plants, houses, and apartments all qualify as investment properties. For those starting out in commercial real estate, taking on a multi-stage construction project from the ground up may not be the ideal first time venture. However, Indianapolis investment properties that offer rehab projects, fix and flip opportunities, or the ability to renovate and rent out properties are great for first time property investors. Retail space can generate a lot of revenue from store owners, as can office buildings.
To Sell Or Rent Indianapolis Investment Properties
Buying and selling investment properties is a great way to make a large chunk of revenue very quickly. The process usually involves fix and flip loans which provide the capital to purchase investment properties and meet the cost of renovation. Commercial real estate investors in Indianapolis will purchase properties below market value, make renovations, and then sell them for a much higher price. Renting may not have a higher revenue yield to start, but can be more profitable because they rent recurs monthly. Obviously, the more units you have to rent, the more you can multiply your revenue. For the most part, Indianapolis commercial real estate investors will use a combination of conventional loans and bridge financing to cover all costs. Then the property will be renovated and rented out to qualifying tenants. There are even blanket loans, which allow people to purchase or renovate multiple Indianapolis investment properties all at once, instead of taking out separate loans for each rental.
Get Started On The Right Path
If you are looking for financing for Indianapolis investment properties, or you simply need some guidance as to what type of property is right for your goals, contact the experts at Liberty Commercial Capital. Our team has the knowledge gained from years of experience in Indianapolis property markets to advise and finance commercial real estate investors, both new and seasoned. Call our offices today and put our knowledge to work for you.