Simply Junior

Last week I was at a presentation by Bank of Hawaii, and they got me thinking. The military and federal government combined in our state is holding up the entire economy on the Island of Oahu. Military construction has not receded, it continues. They are in the process of building housing on Oahu, 10,000 homes by Actus and an additional 4,500 homes over the next few years as replacements for military personnel. There are 102,000 people with the military, mostly based on the Island of Oahu. The military has 18,000 direct jobs that we know of and spending approximately $1 billion/year.

In addition to this, the Department of Defense spends $6.1 billion per year. There is quite a bit of high-tech investment and spending at the Barking Sands project. The Pearl Harbor Naval Shipyards account for a massive amount of spending on Oahu. The Navy has increased the number of jets that it houses and continues to upgrade its fleet here in Hawaii.

Today I noticed eight additional submarines are being repositioned to bases here in Hawaii over the current 24-month period. Military spending is 23% of our overall economy, while tourism, which we all think of as the leader, is just a little bit higher at 30%.

In addition to military spending, Hawaii has one of the highest spending per capita ratios of any state. This is courtesy of our senior senators, the committees, and the chair in congress. In 2007, the federal government spent a total of $14 billion in Hawaii. The State of Hawaii is getting the equivalent of $235 per person in federal earmarks as a result of Congress’ recent special hearings.These projects benefit primarily large government spending projects on Oahu. They include transportation, the University of Hawaii, and the telescopes atop Mauna Kea.

All of this spending is adding up and is the reason Oahu is weathering this economic storm better than most. This is why spending and economic activity on Oahu has stayed relatively similar to that of the previous years, while spending in the visitor economy overall is down in the range of 15%-20%.

Full Article Resource: markbratton.com/blog/

Investors who want to examine the real estate in Pakistan should first learn something about the nature of development in Pakistan. At the present time, Pakistan has experienced growth in what is called “urban sprawl.” Pakistan could benefit from the creation of urban centers, but those who hope to build such centers face roadblocks, roadblocks in the form of government regulations.

Keeping those possible roadblocks in mind, investors who still plan to put money into real estate in Pakistan must gain a familiarity with the categorization of that real estate.
Some of the real estate in Pakistan falls in the category called “commercial.” The purchase of an office building represents an investment in commercial real estate. The purchase of a shop in Pakistan is also an investment in commercial real estate.

Of course not all of the real estate in Pakistan is commercial real estate. One can, for example, find plots of open land for sale within Pakistan. Some of those plots are meant to hold residential buildings. Some of those plots are expected to hold commercial buildings. A third group of the open plots have been set aside for industrial use.

Some open plots are on land that shows no signs of planned development. Other plots might well be on land that already contains one or more roads. Obviously, a plot of land located on a corner would be an excellent investment. The person who chose to purchase such a plot would need to consider how to make the most money from that plot
Before buying such a plot, an investor might want to consider the traffic patterns in the area. The investor might want to speak with local authorities about possible changes in the existing traffic patterns. Sometimes such changes are needed, if an investor hopes to lure shoppers into a planned commercial building, such a large shopping center.

The owner of a plot can not always put a commercial or industrial building on that plot. The owner of a plot might want to build a town house on that plot. The owner of a corner plot might decide to build an apartment on that plot. Either type of residence could provide the plot owner with a dependable income.

If one decides to buy land in Pakistan, and if that plot of land is not in a big urban center, then the land owner might want to offer accommodations to travelers. A plot of land on an island would be a good place to build a vacation bungalow. A plot of land near a scenic spot would seem like the ideal spot for a hotel.

A hotel has the ability to bring conventions and added money to any region that has agreed to the building of that hotel. An investor who intends to put up a hotel should make an effort to emphasize the degree to which a hotel can benefit a local economy. An improved economy in Pakistan would no doubt arise from the building of more hotels in that country.

The real estate business is classified into two distinct categories, namely, residential and commercial real estate. Certain residential properties may not be the primary living quarters of owners and can be used to generate a source of regular income through rentals. Such property is referred to as investment property, but is primarily a residential complex. Houston commercial real estate revolves around the sale, purchase, lease, and rentals of property used for trade and business. This includes a wide range of business properties, such as shopping centers, gas stations, hotels, and office buildings.

The Houston commercial real estate market is enormous and enlists a wide range of feasible properties. Commercial properties acquire their title when they are used for business purposes. They include land as well as anything that is permanently built or fixed within the property, including cottages, buildings, and fences. Pipes, plumbing, heating devices and light fixtures, which are inbuilt or fixed on the exterior of buildings are taken into consideration during Houston commercial real estate appraisals. Houston commercial real estate dealings prove to be profitable for brokers and companies. This is because agents earn asset percentage of the deal proceedings as their service charges. Since commercial real estate provides a return on investment over a period of time and not instantaneously, clients need not rush into a deal. In order to guarantee profitability in the long run, it is advisable to find a Houston commercial real estate property that is feasible and boosts trade.

When considering Houston real estate property price points, clients are not likely to find consistent rates. This is because commercial real estate prices are dependent upon global recession, as well as on local factors and reigning price points of neighboring property. Localities that are reputed as “commercially profitable” are higher price commitments as compared to others located in developing areas.

CREDIT AND ITS IMPACT ON INVESTMENT LOANS

The status of your credit plays a major role in helping you to obtain commercial real estate financing. It helps to determine how much financing for which you will qualify and what kind of an interest rate you will get on the loan. Unfortunately, most people do not pay attention to or monitor their credit files on a regular basis. If you are going to invest in real estate, this is an absolute “must.”
What is good credit?

Good credit for a commercial real estate investor usually means about twelve to fifteen “trade lines” of seasoned credit in a credit report, with several real estate loans either showing as active or having been paid off successfully. For example, car loans, current mortgages, and charge cards which are at least two years old and show no late payments. Again, for real estate investors, successful maintenance of real estate loans is a “must.”

Now granted, not everyone is perfect (in fact, very few are!) and we all have our ups and downs, so don’t be worried if you have a few 30-day late payments or some old collection accounts on your credit report. Today, credit reporting systems use a complex method of evaluating credit patterns which is distilled into and issued as a “credit score.” The higher the number, the less risk there is that a borrower is likely to “default” on a loan.

While this process, called “credit scoring,” is in full use for residential loans, the commercial lenders are only now starting to adopt it. There is a trend to use them by certain non-bank lenders for loans less than $2,000,000 or so.

Most underwriters (the people who would approve your loan) and underwriting systems that review your track record are looking for trends. In other words, they’re looking for a history or recent pattern of good or bad credit. Isolated incidents should not affect your ability to get a loan.

How Can You Repair Your Credit?

In most cases, a simple letter or phone call to the credit card company or business that originally gave you the “credit” can put you on the right track to having that “scar” removed from your report. It may not even be necessary though, based upon your recent credit patterns!

Sometimes they’ll require you to pay-off the balance of your debt or send in a letter explaining why you were late with your payment. Don’t pay any creditor off without talking to a qualified professional financial advisor or mortgage consultant first!

However, if you have a history of recent late payments, you’re probably going to have to let time take its course (although there might be trick or two here you can use).

There are a million scenarios I could review, but I think it’s important you walk-away with two key thoughts from this: 1) Your credit can make or break your ability to acquire a loan; and 2) you must know what is on your credit report, your credit score, and begin to examine and, if necessary, repair any credit problems immediately.

What Role Does Your Investment History Play?

Your investment property loan history or “track record” will play an important role in whether or not a lender will want to finance your next property. Investment properties, and their respective loans, are often looked upon as a higher credit risk than if you were buying your own home. So, if you have a proven track record of successfully selling or managing investment properties loans, with no late payments, then you are more likely to get your loan approved.

The bottom line is that “credit” or, more accurately, “credit history” is a major determinant in your ability to finance commercial real estate. Pay close attention to this area of your finances if you intend to be an active investor and manage your credit as you would one of your properties: Actively.

The factors that affect the value of real estate are generally obvious once they are at work, causing real estate to rise or fall in value. It is important to understand exactly what those factors are and how they can cause the value to move either up or down. The key to success in commercial real estate is to use this knowledge in determining when and what to buy, and how to maximize your profit on a sale. Interestingly, the same factor can cause one property to go up in value while causing another similar property in the same town to go down in value, even if it is just across the street.

Ironically, most of the factors do not just suddenly appear. They are elements that have been in place for years, such as local zoning or building codes. Those and other factors may not be noticed or their real impact not unleashed until the owner of a property attempts to take advantage of what he previously thought was the property’s real value.

By understanding the six factors that affect the value of real estate, you will learn to recognize how to take advantage of a situation when it arises, as well as how and when to avoid potential problems that could diminish the value of a property you are about to purchase.

There are six primary factors that can cause the value of any real estate to rise or fall. They are:

1. Supply and demand

2. Local zoning

3. Changes in infrastructure

4. Economic obsolescence

5. Maintenance procedures

6. Motivation to buy or sell

For a more in depth understanding of the factors affecting commercial real estate, go to www.1northenvirginiarealestate.com.