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Commercial Real Estate Investments: How To Get Started

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Investing in commercial real estate can be a great way to build wealth and stability for your future. If done correctly, it can provide you with a steady income stream and long-term appreciation. However, getting started in commercial real estate can seem complicated and intimidating for beginners. This article will provide you with everything you need to know to get started in this exciting investment arena. We’ll also give you some tips on how to find the best deals and make money in this market. So, if you’re ready to get started in commercial real estate, keep reading!

What Is Commercial Real Estate

Commercial real estate refers to properties that are used for business purposes, including office buildings, retail spaces, industrial facilities, and other mixed-use development properties. These properties are usually larger and more expensive than residential properties, and they often come with special zoning requirements.

How Does It Differ From Residential Real Estate

While both commercial and residential real estate investments offer the potential for profitable returns, there are some key differences that investors should be aware of. 

  • Commercial real estate investments are typically much larger in scale than residential ones. This means that commercial investors generally need to have more capital available, as well as access to more robust financing options.
  • Commercial real estate investments tend to be more complex and require a greater level of understanding of the legal and financial aspects involved. 
  • Commercial properties usually generate income through leasing, rather than through direct sales to individual buyers. 
  • Commercial real estate investments are generally more complex than residential investing, so it’s important to have a team of experienced professionals to help you navigate the market.

Read Also: Jackie Appiah is into real estate, owns about 7 apartments in Cantonments- Fred Nuamah reveals

The Different Types of Properties You Can Invest In

Commercial real estate properties come in all shapes and sizes, from office buildings and retail storefronts to industrial warehouses and multifamily apartment complexes. And within each of these categories, there are further subcategories to consider. Understanding the types of commercial real estate can help you make informed investment decisions. Here’s a brief overview of the most common types of commercial real estate properties:

  1. Office Buildings: Office buildings are one of the most popular types of commercial real estate, and they can come in a wide range of sizes and styles. From small, single-story structures to towering skyscrapers, office buildings house businesses of all types. Office buildings are typically used for businesses such as doctors’ offices, lawyers’ offices, and other professional services. When choosing an office building to invest in, it’s important to consider the location, amenities, and tenant mix.Picture 1
  2. Retail Properties: Retail properties include any type of property that is used for retail purposes, such as shopping malls, strip malls, stand-alone stores, and more. When choosing a retail property to invest in, it’s important to consider the location.
  3. Industrial facilities are used for manufacturing, storage, and other industrial uses. Industrial properties can also be quite lucrative, as they are often used for manufacturing or assembly. For example, warehouse space is often in high demand, as businesses require storage for inventory, equipment, and other materials. 
  4. Multifamily. Residential properties such as apartment units or high-rise condominium units with more than four units can be considered multifamily properties which can be qualified as commercial real estate.
  5. Special Purpose. Some examples of properties that are designed for specific commercial use are schools, car washes, self-storage facilities, and leisure and entertainment such as hotels, airports and sports stadiums, and amusement parks.
  6. Mixed-use development properties. Some examples are mixed-used buildings are commercial properties that are comprised of shopping and other commercial services on the ground floor with residential apartments on the upper levels. 

The Benefits of Commercial Real Estate Investing

Commercial real estate investing can be an attractive option for those looking to diversify their investment portfolio. Here are some of its unique advantages. 

  1. Commercial properties are typically larger and more expensive than residential properties, which can make them more profitable. 
  2. Commercial real estate is often less affected by market fluctuations than other types of real estate. As a result, investors in commercial real estate can often enjoy steadier returns than those who invest in other types of property. 
  3. Commercial real estate can offer several tax benefits. In many cases, the interest on a loan used to purchase a commercial property is tax-deductible, and the depreciation of the property can be used to offset income from the property. 
  4. Commercial properties tend to appreciate at a higher rate than residential properties, meaning that investors may see significant value growth over time.Picture 1 1

How To Invest in Commercial Property

Commercial real estate investing generally refers to the acquisition, ownership, development, and/or improvement of commercial properties. With the potential for income generation and appreciable value growth, commercial real estate can be an attractive investment option for those looking to diversify their portfolio. Here are a few things to keep in mind when considering a commercial real estate investment:

  1. Location is key. When it comes to real estate, location is everything. Be sure to do your research and choose an area that is primed for growth.
  2. Research the market. It is important to have a good understanding of the local market before making any decisions. A real estate broker at buynnnproperties.com will help you get an idea of what type of property would be a good fit for your investment goals.
  3. Have realistic expectations. While commercial real estate can be a lucrative investment, it is important to have realistic expectations about the potential return on your investment. Speak with a financial advisor to get an idea of what you can expect to earn.
  4. Know your financing options. There are a variety of financing options available for commercial real estate investors, including bank loans, private investors, and government programs. Be sure to speak with a lender about what type of loan would be best for your needs. 
  5. Have patience. Like any investment, it takes time to see results from commercial real estate investing.
  6. Diversify your portfolio. Invest in different types of commercial real estate, such as office buildings, retail centers, and industrial warehouses. By diversifying your investments, you will minimize your risk and increase your chances of earning a healthy return on your investment.Picture 1 2

How To Finance Your Commercial Real Estate Investments

There are a few different ways to finance your commercial real estate investments, and the best option for you will depend on your individual circumstances. 

Bank or Traditional Loan. This can give you the capital you need to purchase the property, but it will also come with monthly payments and interest charges. 

Private equity funding. This type of financing typically comes from wealthy individuals or investment firms, and it can give you the flexibility to structure the deal in a way that works best for you. However, it is important to remember that private equity funding is often harder to obtain than traditional loans. 

Personal savings. This is often the riskiest option, but it can also be the most rewarding if the investment pays off. 

Real Estate Syndication. This is a process where multiple investors pool their resources together to finance a commercial real estate investment. This type of investment allows you to tap into a larger pool and spread the risk of the investment out among multiple investors, which can be helpful if one investor decides to back out or is otherwise unable to meet their financial obligations. However, real estate syndication is a complex process, and you should always consult with a qualified real estate expert before entering into this kind of agreement.

Summary

Commercial investors must be comfortable with the risks and rewards associated with this type of income stream. The market can be volatile, and tenants can default on their leases or vacate the property altogether. However, by doing your homework and carefully vetting each opportunity, you can minimize your risk and maximize your chances for success in commercial real estate investing.

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People & Lifestyle

Kenya’s Jennifer Riria to be Honoured as Model African Woman of the Year 2022 by YAWC

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The Group Chief Executive Officer of Echo Network Africa (ENA), formerly Kenya Women Holding which is a woman led, women serving development institution has been nominated to be honoured at the 6th Annual Continental Convocation of the Young African Women Congress (YAWC) which is set to take place in Accra, Ghana from 2nd to 6th October, 2022 under the theme, “Network for Empowerment: Eliminating Barriers to Women’s Development”.

She will be honoured in relation to her interventions in improving the socio-economic situation of women and girls in Kenya, having been admitted into the EY Global Hall of Fame.

A special event dubbed, “Jennifer Riria Day” will be held in her honour on Tuesday 4th October within the period of the congress.

Dr Riria is distinguished as a Microfinance Banker and Practitioner, Researcher and Gender Specialist. She has led Kenya Women Finance Trust Microfinance (KWFT) Bank for over three decades, and propelled it from an unprofitable NGO to a medium sized Bank, serving low income women and their families all over the Kenya. KWFT has served over 3 million women and disbursed over US$ 3 billion over a period of 30 years. As the CEO she spearheaded the transformation of KWFT from a microfinance institution to a regulated middle-sized bank (2004-2009).

She has served in many other leadership roles both in financial, public, and health institutions for which she has been recognised locally and internationally. Dr Riria is the Patron of the Democracy Trust Fund (DTF) a semi-autonomous organization that supports and positions women to participate in democratic processes. Additionally, Dr Riria is the Chairperson of the Africa Women Leaders Network – Kenyan Chapter. Recently she re-launched the “Jennifer Riria Foundation” whose focus is to enhance young women’s leadership through innovations and connecting them with the private sector. Working with and touching people’s life is her passion. Dr. Riria served on many Boards including the Women’s World Bank Board which is an international microfinance network of microfinance institutions and banks for 21 years, which she was the Chairperson.

The “Jennifer Riria Day” will be the second in a series of events to recognise and celebrate astute women of Africa for their contributions to women empowerment for national and global impact. The first, having been conferred on the first female Chief of Staff of the Republic of Ghana, Hon. Akosua Frema Osei Opare in 2019. The day is specifically named after the woman proposed to be celebrated at the specific congress to leave an imprint on the minds of delegates on the achievements of the honouree.

The Young African Women Congress is a Pan-African event opened to young women of African descent. It is a platform which fosters knowledge-sharing and cultural exchanges among nations and generations. Major activities at the congress include Keynote Presentation, Panel Sessions, Career Workshops, Group Brainstorming Sessions as well as Project Story Presentations by delegates. There is also a full day trip to interesting sites to promote Africa’s heritage and tourism.

Its main objective is captured in its motto: Empowering Women for Continental Development and Integration for a Better World.

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Ghana’s new dancing super-talent, Endurancegrand steps into the light with her effervescence

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Dance With Purpose Academy (DWP) have established themselves as one of the best producers of dance talent on the African continent. One of their most exciting prospects emerging on the scene is Endurancegrand.

Born Endurance Dzigbordi Dedzo, the dancing queen who has been stepping gracefully to the rhythm since she was 7-years old has already performed on some of the biggest stages in the country including the VGMA, TV3, Coca Cola, Ghana Football Awards, Ghana’s Most Beautiful and most recently, The Global Citizen Festival: Accra as part of the DWP Academy collective during Usher’s show-stopping performance. To top that impressive feat, she has also worked with brands like AirtelTigo and Dark & Lovely.

Endurancegrand’s interest in dance was piqued by her brother-in-law, Joshua Rana, back when she was just a kid who loved playing football, video games and singing; and she has never looked back since. For her, dancing has never been just a job or a simple means to an end, dancing has always been the “end” itself, her north star. “I faced neglect, doubt and lost some people very close to me because I chose dance as a career but that did not stop me because I always knew what I wanted. To me, dancing is just as important as the air I breathe or the water I drink. Dancing is my life! When I step on the stage, nothing else makes sense. Only my body and the rhythms and energy it releases”, Endurance describing what dancing means to her.

The Capricorn dancer’s biggest dream is to be able to touch lives globally, travel around the world to share her knowledge to the young and old and show women around the world that they can be whatever they choose to be.

Dance with Endurancegrand on her socials and keep up with what will be a very majestic career. Instagram: endurancegrand | TikTok: endurancegrand | Twitter: EnduranceGrand

Instagram: endurancegrand
Twitter: @EnduranceGrand
TikTok: endurancegrand 
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Understanding probable cause

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Probable cause refers to a legal basis that gives the police officer a chance to arrest a person, seize property, or conduct a search. This originates from the United States constitution Fourth Amendment. So what is probable cause? (more…)

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Global publisher to release first graphic novels from South Africa’s award-winning Triggerfish Animation Studios

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North American independent book publisher Catalyst Press will publish two graphic novels from Cape Town’s world-renowned animation studio next year, its first venture into the literary sphere. (more…)

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Global ed-tech leader releases Moodle Workplace 4.0 and a new user experience in its enterprise LMS

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Today, Moodle announced the release of Moodle Workplace 4.0 and an improved user experience in its customisable enterprise learning management platform.

Emilio Lozano, Head of Workplace Solutions said, “Moodle Workplace is built on top of Moodle LMS, giving Moodle Workplace unique advantages as a platform to develop, upskill and reskill employees.  In this release, we have benefited from the discovery and consultation process with the Moodle community that informed the improvements in Moodle LMS 4.0.  As well as providing a better user experience, we have used the enhancements to further evolve our workplace learning tools, including rigorous testing with our end-users.  In an increasingly competitive environment where learning and development is a key driver of performance and talent retention, I’m very excited about the benefits this release will provide to the L&D sector.”

The new Moodle Workplace 4.0 interface is fresh and intuitive with tabbed navigation.

Learning is prioritised through a personalised Dashboard

 

The Dashboard in Moodle Workplace 4.0 is simplified to display learners’ current enrolments plus a section for new available courses.  Learners can see completion status at a glance, and when a learner completes a course, further courses unlocked as part of a learning path or program will appear in the “New available courses” section.

Easily navigate learning content with My Courses

There’s a new addition to the menu called “My Courses”. My Courses is a stand-alone dedicated page that summarises all the learning assigned to an employee in a learning hub, including enrolled, available or past courses.

Managers can create learning journeys for their staff by combining different courses into learning programs and learning paths. All programs, courses and course subsets are linked so that managers and employees can easily navigate within and between learning programs and courses.

Manage team performance and development

 

In Moodle Workplace 4.0, a new page called “My Teams” provides managers or department leads visibility into team members, including tracking employee roles, learning path progress, course completion status and certifications. Managers can generate individual or team reports obtaining insight into individual or team performance and learning program effectiveness.

Automate onboarding and streamline compliance training

 

The user experience improvements in Moodle Workplace 4.0 make it easier for managers to create tailored training pathways and onboard employees by automatically assigning learning and granting competencies to individuals or teams based on tailored or dynamic rules.

 

With automation, managers can turn learning programs into certifications to streamline compliance training or meet legislation requirements.  Managers can also schedule a ‘recertification’ which can be the same Program or a different one.

 

Improve program efficiency by centrally managing multiple learning platforms within a single LMS site

Through multi-tenancy, Moodle Workplace 4.0 makes it straightforward for administrators and managers to support different learning audiences by creating an ecosystem of individual learning environments in a single LMS site. Each tenant can have its own look and feel, user membership, administrators, and content, and Moodle Workplace also supports content sharing across tenants.

Evaluate the impact of learning and make informed decisions

In Moodle Workplace 4.0, report builder now allows managers to build custom reports for audiences in a drag-and-drop interface with instant preview. Data insights help managers adapt and improve learning programs to drive better employee performance.

Build a seamless learning ecosystem with single sign-on and integrations

Moodle Workplace 4.0 integrates seamlessly with a wide variety of software, including HR systems and content repositories, so that L&D departments can build an ecosystem that supports their organisation.

The streamlined sign-in accommodates Single Sign-On with support a wide range of standard single sign-on providers (Google, Microsoft, Facebook) and also custom authentication plugins.

Boost employee engagement with rich and engaging learning experiences

Moodle Workplace 4.0 goes beyond the basic content features of most enterprise learning management systems. Courses are rich with activities requiring learners to actively engage with the learning content and each other in various modalities. New enhancements include BigBlueButton, the web conferencing and virtual classroom, and Appointment Booking, which allows managers to schedule group sessions or 1:1 meetings.

Contribution to open source Moodle LMS

 

The enhanced tools and features created for workplace learning in Moodle Workplace directly benefit the Moodle community and Moodle LMS as open source code and features.  This relationship contributes to Moodle’s sustainability and allows us to continue on our journey to enable quality education in all corners of the globe, and our mission to empower educators to improve our world.

Find out more about Moodle Workplace 4.0 or please contact us.

Watch the Moodle Workplace 4.0 video.

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Bush & Co Lauded the Best Expert Witness and Case Management in the Uk

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Facing a terminal injury, either from personal injury or clinical negligence, can be overwhelming for a family and casualty. When it arises from clinical negligence, it creates even more bitterness realizing that the casualty is in pain from someone’s incompetence. (more…)

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