garkomatic.info

A sarcastic funny and slightly spastic who likes to write about random stuff.
  • scissors
    October 15th, 2008adminReal Estate

    It had never been a wise move purchasing a property in a place you don’t have any idea about. It’s like going on a vacation abroad and not checking what the weather is when you get there so it turns out you brought the wrong set of wardrobe! France is one of the best places on the planet to live in but would you like such thing to happen when you buy a property in France? Having a property in a place close to paradise is exciting but be reminded not to rush. Make some research and make sure you know where’s a good place to settle.

    Aside from finding the right place, know some backgrounds of the place where you are planning to purchase the property that soon would be your haven and tips on how to enjoy life in a place far away from home. If you think you still have a lot of things you need to learn before finally settling in, MyFrenchRealEstate.com is the place where you can get everything you wanted.

  • scissors
    July 14th, 2008adminReal Estate

    Back then it was just a dream of owning lands in the beautiful country of Mexico, but now with the legalized law to it, you sure could have that dream land you were looking to own right today, now you can invest on a Mexican real estate of your choice, from the great sceneries that it promises and of course the best locations that would put your place to be near hospitals, schools and everything else that you need.

    These Puerto Vallarta properties just come and go so asking some information regarding them is something that you should prioritize highly today, not only do they come in cheap but think about how your house would stand on the exotic places where it would be located, towering high against hills and surrounding of plush features of Mother Nature.

    Why wait when you can have Puerto Vallarta real estate of your own immediately, visit them today at www.selectmexicoproperties.com.

  • scissors
    May 9th, 2008adminReal Estate

    In residential real estate, the listing price is determined by the seller. Comparables "comps" are analyzed for a myriad of variables including price per square foot, bedroom count, bathroom count, number of garages features (pool, central vacuum, etc), location (cul-de-sac, corner, busy street), views & more.

    Adjustments are then made to the subject property to render it equal with those comps. For instance if the subject property has one fewer bedrooms and 500 fewer square feet of living space, it’s price will be reduced by the value of the extra bedroom and the reduced square footage.

    In commercial real estate, pricing is determined by the income the property produces. Although physical features (pool, laundry facility, etc) and location (busy street, etc) are factors, they are considered only to the extent that they enable the property to command higher rent or decrease its operating expenses in order to increase the property’s cash flows or Net Operating Income (NOI). Secondarily location is considered to the extent of the potential appreciation of the land. In commercial real estate, it is these cash flows and the amount an investor is willing to pay for these cash flows that will determine the price of the property.

    Put simply, if the annual cash flows from a particular property are $100,000 and an investor is willing to pay $2,000,000 for those cash flows, then the property is worth $2,000,000 to that investor. If another investor is only willing to pay $1,000,000 for those cash flows, then the property is worth $1,000,000 to that investor.

    Investors will consider numerous properties in a given area to determine the standard of how much is typically paid for particular cash flows in that area. The "going rate" in area can be considered its cap rate. An exact definition and explanation of cap rate will be detailed in a subsequent article. This article will address the concept of cap rate.

    In this example, the first investor only required a 5% return on investment or yield and therefore could pay as much as $2,000,000 for $100,000 in annual cash flows to obtain his/her 5% desired return. The second investor required a 10% yield and was therefore only willing to pay $1,000,000 for the same $100,000 of cash flows. Different investors require different yields which affect the price ultimately paid for the property.

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  • scissors
    May 5th, 2008adminReal Estate

    Regardless of how the economy is and how expensive the price of gas is, there are always plenty of gas stations for sale and there are always plenty of buyers. Unless the site is a bad site, there are always a LOT more buyers than there are gas stations for sale.

    So how do you decide what type of gas station to buy? If you were to categorize, you could break them down into gas station/service stations (ones with traditional service bays and minimal space to sell convenience store items), pumpers (high fuel volume stations in kiosks or smaller buildings where none to minimal amount of convenience store items are sold) and traditional convenience stores with fuel.

    First, let’s make it clear that you can make a LOT in any of these situations with the right location, right employees and right timing. Gas stations and convenience stores are diminishing in numbers yearly though due to the emergence of high volume, larger convenience stores and traditional gas stations being torn down or razed and other types of properties being rebuilt.

    If you are a mechanic and you are looking to buy a station, a logical choice would be the service station. This is becoming a dying breed though because many mechanics are going to work in franchise repair facilities (Meineke, Goodyear, Monro, AAMCO, etc) or purchasing these franchises, especially due to the volatility of fuel prices. Unless you are a mechanic and can run these type businesses you should probably pass on this. Many individuals are purchasing service stations and building out the service bays to full sized convenience stores. Another thing to remember about service stations; because these type properties tend to be older, you typically will have deferred maintenance on such a facility much quicker. Also, the underground storage tanks tend to be older steel tanks and will most likely need replacing sooner than later.

    Pumpers, depending on your source, are high volume fuel stations (more thought of at least 150,000 gallons per month) are also becoming less popular as fuel gallonage is decreasing across the country and inside sales remain stable or increasing in some areas. Competition from hypermarts (Sams, Costco, Albertsons, etc) have also impacted profit margins. Regardless of the price of gas, people will still purchase their cigarettes and packaged beverages. If you are purchasing a pumper and are depending on high volume and a certain margin, you probably will feel this more than others. Not only is fuel gallonage decreasing nationwide, fuel profit margins are also decreasing nationwide. From a lending point of view, these properties are less attractive to lenders because there is little on the site other than land, a canopy, dispensers and a small kiosk building. Unless you have the space to put up some sort of modular convenience store, you might want to pass on this option.

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