Steven Taylor’s Guide to Investing in Multi-Unit Real Estate in Los Angeles

 

Steven Taylor LA

Multi-unit properties have always been popular areas of investment in the burgeoning real estate market that is Los Angeles. In this field, representative native investors include Steven Taylor. In this article, seasoned investor Steven Taylor explains the ins and outs of investing in multi-unit real estate in Los Angeles.

1. Knowing Your Way Around the Los Angeles Real Estate Market

Los Angeles, famous for its lively land market, has special properties and players in the game. Its disparate population and constant growth, then, means that the city is a rich field in which to invest. Multi-unit properties such as apartment blocks are particularly attractive propositions for investors. Being familiar with market trends, socio-demographic shifts and economic factors is another key role of an investor.

2. The Appeal of Multi-Unit Properties

There are quite a few advantages to investing in multi-unit properties in Los Angeles. These properties, which include duplexes, triplexes and bigger apartment complexes offer an opportunity to earn more rent and are scalable. They also serve as a shield against market variations, because the risk becomes spread across several units. In addition, owning a multi-unit property can bring considerable tax advantages and room for increased value.

3. Location, Location, Location

It's location, location in real estate. Steven Taylor stresses that one must select the right neighborhood to invest in multi-unit properties. Proximity to amenities, public transportation and employment centers are factors of great importance for attracting tenants. Los Angeles neighborhoods like downtown, Santa Monica and West Hollywood--all examples of strong rental markets--are popular with investors.

4. Financial Considerations and Funding

Finance management is an important part of real estate investing. Knowing prices-not only the purchase price but also renovation expenses, property taxes and maintenance costs is important. According to Steven Taylor, people who want to invest should have a financing plan in place. They could consider mortgages or real estate investment trusts (REITs), for example, alternatively they may choose some form of joint venture with others. Moreover, monitoring interest rates in this way and taking advantage of the power of compounding can greatly enhance an investment's returns.

5. The Importance of Due Diligence

Before buying a multi-unit property, due diligence is very important. It involves appraisal of the property's condition, researching zoning regulations and calculating possible rental revenue. In order to avoid being saddled with costly repairs and legal problems in the future, Steven Taylor emphasizes that a thorough property inspection is imperative.

6. Property Management Strategies

Property management is the most important factor in a multi-unit real estate investment. This means screening tenants, routine maintenance and timely response to tenant complaints. Hiring a professional property management company can be a wise decision for many investors, and in particular when they own more than one or are not local.

7. Navigating Challenges and Risks

But purchasing multi-unit real estate in Los Angeles like any investment is not without its challenges and risks. Some of the hurdles include market volatility, tenant problems and changes in regulation. investor Steven Taylor urges investors to keep their eyes open and be flexible, with contingency plans in case things don't turn out as hoped.

8. The Long-Term Perspective

Multi-unit real estate is by its nature a long investment. With a long history of steady growth, the Los Angeles real estate market has excellent potential for long-term yields. According to Steven Taylor, investors should not just be thinking in terms of making profits now; instead, they need to pave the way for a long-term profitable investment portfolio.

9. Giving Back to the Community

Steven Taylor says that investing in real estate is not only about the money, but also giving back to society. Investors having a positive impact If investors provide quality housing, engage in sustainable practices and support local businesses then the neighborhoods they invest in will be both improved.

It takes a combination of market savvy, financial abilities and bold planning to invest in Los Angeles' multi-unit properties. Learning from the steps and tricks of successful investors like Steven Taylor, those willing to take a risk can grasp the nuances; they may even become investor kings themselves. If investors focus on three main points--location, financial planning and effective property management--their own real estate businesses in Los Angeles can be made into worthwhile ventures.

Originally published at https://www.reddit.com/user/StevenTaylorLA on December 21, 2023.

Steven Taylor – Los Angeles Commercial Real Estate Investing

 

Steven Taylor LA

The world of commercial real estate offers a unique avenue for investors seeking steady growth. Unlike more volatile investment options, real estate can provide consistent returns, given the right strategies and market understanding. Here's why real estate investing is a robust financial vehicle and how to protect your investments from market fluctuations.

1. The Power of Tangible Assets

Real estate is a tangible asset, meaning it has intrinsic value. Unlike stocks or bonds, the physical nature of property can offer a hedge against inflation and economic downturns. Properties typically appreciate over time, providing a stable growth trajectory for investors.

2. Diverse Revenue Streams

Commercial properties can generate multiple streams of income. From office buildings to retail spaces, the diversity in commercial real estate allows investors to spread risk across different sectors and geographical areas. This diversification is key in mitigating the impact of market volatility.

3. Leveraging Long-Term Leases

Commercial leases are often longer than residential leases, providing a more stable and predictable income stream. This long-term occupancy can lead to sustained cash flow, essential for maintaining and growing your investment portfolio.

4. Value-Add Opportunities

Real estate offers unique opportunities to add value through renovations, rebranding, or changing the property’s use. These value-add strategies can significantly increase a property's worth and rental income, boosting overall returns.

5. Understanding Market Cycles

Real estate markets move in cycles. By understanding these cycles, investors can make informed decisions about when to buy, sell, or hold properties. Timing your investments with market trends can maximize returns and reduce risks.

6. Hedging Against Inflation

Real estate investments often act as a hedge against inflation. As living costs rise, so do property values and rental rates. This correlation can protect your portfolio's purchasing power over time.

7. Effective Risk Management

To protect investments, it’s crucial to perform thorough due diligence, including market analysis, property inspections, and financial assessments. Diversifying your portfolio across different types of properties and locations can also minimize risk.

8. Professional Property Management

Effective management can make a significant difference in the performance of a real estate investment. Professional property managers can help maintain high occupancy rates, ensure timely rent collection, and keep properties in good condition, contributing to steady growth.

9. Leveraging Technology and Data

Utilizing technology and data analytics can provide insights into market trends, tenant behaviors, and property performance. This information can guide strategic decisions and help anticipate market changes.

10. Building Equity and Wealth

Real estate investments can serve as a powerful tool for building equity and long-term wealth. As you pay down property mortgages, your equity grows, providing a solid foundation for your financial future.

Wrap-up

Investing in commercial real estate can offer steady, long-term growth, especially when strategies are employed to mitigate market risks. Understanding the market, diversifying your portfolio, and leveraging professional management are key to protecting and growing your real estate investments. With these approaches, commercial real estate can be a resilient and profitable financial vehicle. – Steven Taylor, Los Angeles

Things to Know Before Investing in Commercial Real Estate in Los Angeles

 

The allure of the Los Angeles commercial real estate market is as radiant as the California sun. With its robust economy, diversity of industries, and a continual demand for commercial spaces, L.A. offers lucrative opportunities for investors. However, diving headlong into any investment without due diligence can spell trouble. Before you put your money into commercial real estate in the City of Angels, there are essential factors you need to consider. This article aims to provide you with a balanced perspective, focusing on the positive aspects, while also alerting you to cautionary elements.

Strong Economic Climate

One of the most appealing factors about investing in L.A.'s commercial real estate is the city's dynamic economic landscape. Home to Hollywood, world-class universities, and a bustling tech scene, Los Angeles offers a myriad of opportunities for business growth and, consequently, high demand for commercial spaces. The continual economic evolution ensures that investing in commercial real estate here is not just a short-term opportunity but also a long-term growth prospect.

Diverse Range of Properties

From retail and office spaces to warehouses and industrial units, the range of commercial property types in L.A. is diverse. This diversity allows you to diversify your investment portfolio, thus reducing risk. You can invest in various sectors like entertainment, technology, healthcare, and logistics, which allows for a more stable income stream, even if one industry faces a downturn.

Strategic Location

L.A.'s strategic location as a major hub for international trade, tourism, and entertainment adds intrinsic value to its commercial real estate. Proximity to the Port of Los Angeles, LAX Airport, and an extensive freeway system makes the city a prime choice for businesses. These logistic advantages can translate into higher property values and rental incomes.

Regulatory Environment

While the business climate is largely positive, L.A. also has a stringent regulatory environment, particularly around zoning laws, permits, and land use restrictions. These regulations can impact both the buying process and your property's long-term value. Therefore, it's essential to consult with legal advisors who specialize in L.A.'s commercial real estate to navigate these complexities.

Due Diligence

Before making an investment, always perform a thorough due diligence process. This includes researching the property’s history, understanding its current tenancy, checking property conditions, and conducting a financial analysis. You should also assess the demand for that specific type of property and its future market prospects.

Financing Options

When it comes to financing your investment, Los Angeles offers a wide range of options. Traditional bank loans, private equity, and Real Estate Investment Trusts (REITs) are some of the available pathways. Be sure to explore all the options and choose the one that aligns with your financial goals and risk tolerance.

Expert Consultation

Engaging experts for consultation is not an option but a necessity when it comes to commercial real estate investment in L.A. Real estate brokers, legal advisors, and financial consultants can provide insights that can be invaluable to your investment journey. Their expertise can help you avoid common pitfalls and identify hidden opportunities.

Risks and Mitigations

While L.A.'s commercial real estate offers tremendous opportunities, there are also inherent risks, including market volatility, economic downturns, and changes in government policy. Diversifying your investments and regularly reviewing your portfolio can help you mitigate these risks.

Key Takeaways

Investing in commercial real estate in Los Angeles offers the promise of significant financial returns, thanks to the city's vibrant economy, diverse range of properties, and strategic location. However, success in this arena requires more than just capital; it demands a comprehensive understanding of the market, meticulous due diligence, and the guidance of experts. By considering these factors, you can make well-informed decisions that pave the way for a profitable and sustainable investment career in one of the world's most dynamic cities. Steven Taylor, Los Angeles

Real Estate Investing: Saving Distressed Properties and Building for the Future

 

Introduction

In recent years, the world of real estate has presented itself as a viable path to long-term wealth creation. However, beyond the glitz and glam of flipping houses or owning luxury apartments lies an unexplored niche that is not only profitable but also socially responsible—investing in distressed properties. This article delves into the compelling prospects of turning distressed properties into productive assets, thereby serving the dual purpose of enriching the investor while revitalizing communities. Moreover, this approach aligns well with a new paradigm in investing that values social responsibility and sustainability alongside financial returns.

What Are Distressed Properties?

Distressed properties are real estate assets that have come under financial or legal duress, usually leading them to be undervalued in the market. Such properties can include foreclosed homes, abandoned buildings, or structures in need of substantial repairs. Investing in these properties often presents the chance to buy at significantly reduced prices, making them particularly attractive for those looking for a potentially high ROI (Return on Investment). This sector of real estate can be both challenging and rewarding, requiring an in-depth understanding of legal frameworks, negotiation skills, and a keen eye for the true value of a property.

Saving Distressed Properties: A Win-Win Scenario

Social Impact

Investing in distressed properties can significantly contribute to community rejuvenation. By acquiring, renovating, and either selling or renting these properties, investors can instigate a cycle of neighborhood improvement. Renovated homes can increase the value of surrounding properties, which encourages further investment and development, eventually elevating the whole community. The positive social ripple effects can extend to improved local schools, increased public services, and even lower crime rates.

Economic Benefits

While the social impact is considerable, the economic gains are also worth mentioning. Distressed properties often come at a lower acquisition cost, thus lowering the entry barrier for potential investors. When managed efficiently, the returns can be substantially higher than traditional real estate investment avenues. Plus, certain government incentives aim to encourage such investments, further sweetening the deal. Tax benefits, reduced permit fees, and grants are among some of the incentives that could make your investment even more lucrative.

Sustainable Development: Building for the Future

Energy-Efficient Renovations

Incorporating sustainable features during the renovation process not only reduces the long-term operational costs but also makes the property more marketable. Energy-efficient appliances, solar panels, and better insulation are a few examples of such features. Beyond just marketability and operational costs, these sustainable renovations also contribute to the fight against climate change by reducing the carbon footprint of the property.

Long-Term Investment

While the short-term gains from flipping distressed properties can be attractive, long-term rentals can offer a steady income source. With the right kind of sustainable renovation and community involvement, such properties can turn into long-term assets generating consistent revenue. An added benefit of long-term rental properties is that they can provide an opportunity for creating affordable housing solutions, further contributing to community development.

Risk Management

Like any investment, putting money into distressed properties also involves risk. Proper due diligence, consultations with experts, and comprehensive financial planning are crucial in mitigating these risks. It is crucial to understand local real estate laws, the economic landscape, and the true potential for property appreciation. Additionally, building strong relationships with local contractors, legal advisors, and other professionals in the field can serve as invaluable support networks to navigate through the complexities of distressed property investment.

A New Horizon in Real Estate Investing

Investing in distressed properties offers a unique opportunity to garner significant financial returns while also contributing positively to community development. By focusing on sustainability, investors are not just flipping properties; they are building for the future. With adequate planning and risk management, this niche in real estate investment can be incredibly rewarding both financially and socially. As the world shifts towards more responsible and sustainable investing strategies, the realm of distressed property investment emerges as a vibrant frontier that promises not just profits, but also progress. Originally published at https://www.reddit.com.

Steven Taylor on What to Look for in Los Angeles Commercial Real Estate

Steven Taylor- Los Angeles What a view

If you’re an investor interested in joining the game of commercial real estate, Los Angeles is a popular market. Commercial property can be a lucrative asset, but all real estate investments are inherently risky. Like in any other city, it is essential that you put your capital into the right building. By properly researching Los Angeles properties and looking out for red flags, you can make sure you are picking up a property with a good chance of success.

But what do you look for in Los Angeles commercial real estate? In this article, Steven Taylor, of Los Angeles, shares his expertise on what signs to look for on your journey to invest.

What do investors look for in Los Angeles neighborhoods?

In Los Angeles, it’s often a very fine line between a downtrodden area that is about to skyrocket, and a neighborhood that is going downhill. Buying in a low value area can be a fantastic opportunity to get in on the ground floor before a neighborhood becomes popular, but it only works if things go your way. When looking at buying commercial real estate in Los Angeles, you want to look not just at the specific neighborhood, but the growth of the entire surrounding area. Where is the movement coming from? Get specific. You can never do too much research. Los Angeles native Steven Taylor, an experienced commercial real estate investor, says to look closely at job growth in an area. If local businesses are expanding and hiring, the market could be on the rise.

On the other hand, you should be looking out for red flags that a neighborhood is heading downhill. Watch for businesses shutting down, influxes of renters moving out, and declining traffic. Don’t be afraid to ask — talking with local business owners directly can be a great way to get clear insights about a neighborhood.

How does a commercial real estate investor assess property condition?

When investing in Los Angeles commercial real estate, one of the most important purchasing factors is the property condition. While it can be profitable to buy a property as a fixer-upper, if the building needs extensive repairs to function successfully, you have a lot to consider. There are a lot of old buildings in LA — some just need repairs for cosmetic appearances, but some need a complete overhaul to be usable. If you aren’t careful, you may get stuck in a situation dealing with repairs that cost you more than they’re worth. If you’re looking for a property you can improve without ending up with a money pit, here are a few signs Los Angeles native Steven Taylor looks out for:

Los Angeles Commercial Real Estate checklist:

1. High ceilings: It is common for renters of commercial properties to require high ceilings to operate correctly. While low ceilings can be raised, it can be unpredictable how construction will go until you get started, and there can be a lot of unexpected costs. Make sure ceilings are in good condition, and that the ceiling height fits the needs of renters before investing.
2. Good roof: One of the most common and expensive repairs for a commercial building is updating the roof. If a commercial building needs a new roof, it is going to cost significantly more than it would at a residential real estate property. When looking for properties in Los Angeles, focus on buildings with strong roofs with minimal leaks or damage.
3. Strong walls and floors: Steven Taylor always walks through a commercial property looking for small signs of bigger damage and issues. Look thoroughly for any small cracks or other signs of settling in the floor or walls. If there is anything unusual, have it looked into immediately. A good commercial real estate property has a solid foundation that won’t settle.
4. No environmental damage: In Los Angeles, there are a lot of commercial properties in industrial areas. If you are purchasing a building in one of these areas, you want to look out for clean buildings that don’t have any sort of contamination. Environmental contamination can turn into another money pit, so be on watch for any chemicals or other contaminants that could affect the working or renting conditions of the building.

Originally published at http://steventaylorlandlord.wordpress.com on February 11, 2021.

 

Steven Taylor on how Los Angeles Real Estate Has Been Impacted by Covid-19

 

Los Angeles native Steven Taylor with wife Natalie

Los Angeles is now the national epicenter of the COVID-19 pandemic, and has been dealing with the Stay at Home order since March. The widespread impact of coronavirus has been profound, but how has Los Angeles real estate been impacted by COVID-19? While many expected the housing market to plummet, there has been a surprising twist: Los Angeles housing has actually been hot in recent months. Homes are selling fast, and real estate experts like LA native, Steven Taylor say credit is partly due to the coronavirus pandemic.

In the last few months, home sales rose 19% in Southern California. While many lower-income workers are unemployed and facing evictions, the pandemic has actually left higher-income employees in good financial standing. These middle to upper class residents are left in a good position to buy new homes, and the pandemic has only increased their motivation to do so.

Being stuck at home has been a major inconvenience to many Americans, including Los Angeles residents. A large number of families in LA live in multi-family housing units, or small one-story homes. Now that everyone is working from a home office, homeschooling their kids, and trying to stay sane, people are scrambling for more space. Lack of privacy and cramped quarters are motivators for families to sell their starter homes and move into larger houses as soon as they have an opportunity.

This burst in buyer motivation has put Los Angeles Real Estate in a good place, even as we approach the year-mark of the international pandemic. Markets are high, interests are low, and those who can afford to are taking advantage. Why would residents who are looking to upgrade stay in a tight apartment? According to Steven Taylor, Los Angeles native and real estate investor, home-purchase mortgages are up 25% from 2019. “When it comes to the LA residential real estate market, it’s as if the pandemic recession is a non-factor.”

Upper-class families aren’t the only group applying for home mortgages. Los Angeles is full of millennials who are shopping for homes for the first time. LA is a city of opportunity, and when it comes to success, age doesn’t discriminate. The tech, social media, and entertainment industries have put many young people in a position to invest in real estate. Young home buyers are scooping up properties fast. Zillow predicts that this could be the best year for residential housing sales since 2006.

On the other hand, commercial real estate has taken a hit since March. The majority of those who are still employed are now working from home, and office space rentals are steadily declining. The new normal has significantly decreased the demand for commercial real estate in Los Angeles. While this could be seen as a negative, it has also opened up opportunities for investors to transform spaces to create much needed affordable housing.

As we move into the spring, real estate investors will be keeping their eyes on the numbers. Will the LA housing market continue to soar? How will commercial real estate adapt to meet new demands? It is clear that COVID-19 has had an impact on Los Angeles real estate - the results may continue to be even more unpredictable than anyone expected.

 

Steven Taylor of Taylor Equities on How to Get Started in Real Estate Investing

Steven Taylor of Taylor Equities on How to Get Started in Real Estate Investing 

If you’re interested in becoming a real estate investor, according to Steven Taylor of Taylor Equities, developing a solid understanding of the real estate industry is the best place to start. Like other investment strategies, it is possible to make a profit from a deal, purely based on luck. But, you don’t want to get off on a technicality in business. Long term growth doesn’t happen from one lucky deal. It happens with thorough understanding and extensive knowledge or the market you are working in, along with hard work and dedication.

To successfully get involved in real estate investing, the first step is to do your research. Build your knowledge of the market, the rules of the game, and what has worked in the past. Real estate can return high profits, but before you start purchasing properties, you will have to do the work.

Below, I’ve included a few areas of real estate that I recommend you research before getting started in real estate investing. If these concepts feel beyond your reach, start with reaching out to an expert or mentor who can point you in the right direction.

Understand how to evaluate a property.

The first aspect of real estate investing you should understand is how to evaluate a potential property. Before getting started in real estate, study evaluation methods for acquiring units, buildings, and property. As you build your portfolio, it will be essential that you only add assets that will be beneficial to your big picture goals. You may find that a flashy, exciting property, or a cool fixer-upper may not be worth your time after you properly evaluate it. There are many resources for learning how to inspect units, research potential neighborhoods, consider zoning, and integrate comparative market analysis into your strategy. The goal here is to confidently determine every property’s potential for profit before making purchases. 

Learn how your profit can be affected.

Before getting started in real estate investing, you should make yourself aware of the different ways your profit can be affected. There are several types of cash flow that can change your profit. The most common technique to create cash flow is “flipping.” With this method, real estate investors fix up a building or other property to later resell at an increased price. But, even in this case, other factors will ultimately affect your cash flow, such as your income, how much you pay in taxes, what type of tenants you have, and your vacancies. To understand real estate investing, you must first understand the many ways that your cash flow could be affected.

Build your understanding of mortgages.

In order to have a real grasp on real estate investing, it is necessary that you understand the variety of mortgages available. Before you get started, sit down and research the different types of mortgages, and study the pro’s and con’s of each. This will help ensure that you participate in a deal that will secure your investment. Many new investors don’t spend enough time shopping for the best mortgage, and end up with an interest rate that will not benefit them in the long run. Watch out for mortgage deals that sound too good. If a deal feels unrealistic, get a second opinion. Real estate is a business that isn’t going anywhere.  As Taylor Equities founder Steven Taylor  knows, there should be no rush to jump in. If you learn as much as you can first, you can get started in real estate investing with an advantage.

4 Factors to Keep in Mind When Investing in Apartment Complexes

This article originally appeared on https://steventaylorlandlord.com/4-factors-to-keep-in-mind-when-investing-in-apartment-complexes/

When considering investing in anything, according to Steven Taylor of Taylor Equities , the question you should always ask is: Why is this a good deal? A good deal isn’t just about numbers – a good deal has a compelling story and makes sense. Is the property mismanaged? Stressed? Under foreclosure? The facts should tell a story that explains why the property has value. Developing the instinct to recognize a good deal takes time, but with research, study, and experience you can learn to find the right investments.

Here are four factors to keep in mind when investing in apartment complexes.

1. Cash Flow

The probability of cash flow is a crucial factor to consider. It is important to evaluate how the property will generate cash flow in comparison to other potential properties. To start, ask yourself these questions:

• What is the strength of the rental market in the area?
• What type of market you are buying into (For example, C class buildings often have higher rates of tenant turnover. They can also call for more maintenance and repairs.)
• Financing (How much money are you putting down? What is the interest rate? What type of loan?)

2. Equity

The next thing to consider is if the apartment complex you are purchasing holds equity. If the property doesn’t have equity, can you create it?  Equity in a property can take many forms. A few to look for are:

• Discounted listing price
• Foreclosure
• Upside potential (Fixer-upper)
• Poor management
• Opportunity for rezoning

While there are ways to create equity, you are better off buying into it. Be on the lookout for motivated sellers who... continue reading on Steven Taylor of Taylor Equities

Steven Taylor - Why I Started Taylor Equities

Steven Taylor of Taylor Equities with his family at the Walk to End Alzheimer's

As an established real estate professional in Los Angeles, I am often asked by young entrepreneurs how I got my start. Starting my own company was a journey, but now I have years of experience working in the California market, with over $500 million in real estate transactions under my belt. I hope sharing my experience of why I started Taylor Equities, and what it has been like running my own family business, can inspire other young professionals entering the market.

My journey to starting Taylor Equities began just out of college. After graduating from the University of California Santa Barbara, I decided to move back to Los Angeles. At the time, I didn’t have any money, and I wasn’t sure what I wanted to do. I began considering industries in which I could get started without any capital. A member of my family who I looked up to suggested real estate may be a good place for me to start. Hoping to establish myself, I set out to find my first job as a real estate broker. 

On my search to becomea broker, I knew it was important for me not only to find a job, but to find a mentor who I could align myself with. After considering my options, I was lucky to receive offers from several different big companies. In one of these meetings, I met David at Daum. I knew immediately that he would have a huge influence on my career. It was clear that he was a professional with much to teach me -- but also that he cared about me as a person. I started working with him in industrial real estate, and we ultimately ended buying property together and becoming partners. Having a mentor to guide me in my development as an entrepreneur was an essential part of my early career. We remain friends to this day.

I entered the industry as a competitive and eager young broker. In addition to my mentorship, my drive and passion helped me excel early in my career. At only 24 years old, I purchased my first real estate property. In just a few days, I was able to flipit, sell it, and make a large profit. The fact that I was able to pull this off, with very little industry experience, was a miracle. It was in honor of this first deal that I named my company Ness Holdings. “Ness” means “miracle” in Hebrew. That initial flip was the miracle that gave me the profit to start my first company.

In 2008, I was proud to establish Ness Holdings Inc., a private equity real estate investment fund. After spending some years as a broker, I decided to transition to the principle side of the business. I was able to raise a fund, and after I sold out, I started buying on my own.

As I was working in the industry and beginning to grow my family, I learned that I was navigating two worlds. Both parts of my life require extensive care, time, and energy, and never wanted to sacrifice one for the other. I strove to be present with my family when I was at home, and present in my work when I was at the office. Reaching the goal of starting my own family office helped me achieve balance between a successful career and a family life.

Taylor Equities, my family-run business, was established in 2013. We acquire value-add multi-family properties. To this day, I still personally manage the portfolio, and I am responsible for all major operational and investment activity. While I am proud of many of my accomplishments, reaching that personal goal and starting Taylor Equities will always be one of my greatest achievements. -Steven Taylor

Steven Taylor, Taylor Equities - Things to Consider When Renting Commercial Properties

According to Steven Taylor of Taylor Equities, if you are thinking about renting a commercial property, there are many things to consider before you sign a lease. The commercial real estate landscape comes with many complications and isn’t as straightforward as renting a residential space. To find the right property, you will need to understand the factors that will affect your lease term.

 Here are a few things to consider when renting commercial properties:

1. Choose the right location

Before deciding to rent a commercial property, it is important to research the neighborhood and understand the market. Is this location a prime area for your business? Pay close attention to street traffic, noise levels, economy changes, and customer behavior in nearby businesses. Does the area have ample parking? Will employees and customers feel safe and secure? Is the building accessible to your manufacturers and suppliers? Taking the time to ask the right questions can save you time and energy in the long run.

2. Agree on rent and tenure

Once you have chosen a property, you will need to agree on rent and tenure. Many renters don’t realize that a lease is negotiable. Don’t be shy when researching properties - to ensure you get the best deal you will need to discuss and negotiate the lease terms with the landlord.

Locking in a deal that will decrease monthly expenses can be a game-changer. If a property you are interested in is out of your predetermined budget, first see if the landlord will budge on the rental price. If not, look elsewhere. In most cases, it won’t be worth splurging and taking the risk. The same rule applies to tenure. If you are looking for a short-term lease with renewal options, but a building is requiring a long-term lease, it is essential to consider how your business will be affected.

3. Understand the type of lease you are entering

There are a few different types of commercial leases. Make sure you understand what type of property you are renting and how the payments will be executed.

Percentage Lease: 

This is the type of lease used most commonly for retail spaces. With a percentage lease, the tenant pays the landlord a base rent as well as a sales percentage. 

Net Lease: 

In a net lease, the tenant must pay the landlord expenses incurred while renting the property, such as maintenance expenses, in addition to their rent.

Gross Lease: 

In a gross lease, all fees are included in the per square feet price.

4. Further examine the agreement

Many people sign a lease without thoroughly reading the fine print. Steven Taylor of Taylor Equities believes, this can be a grave mistake. Spend an ample amount of time reading through your lease agreement. If there is anything you don’t understand, consult a real estate professional or lawyer. Otherwise you may end up signing an agreement that greatly favors the landlord. Often, renters don’t realize that their lease is negotiable. Look through the agreement and discuss each clause. A lease agreement should clarify all of the tenant’s rights and obligations.

Do your research, negotiate a deal, and always have an exit plan. The process of renting a commercial property can feel overwhelming, but if you take the time to consider the factors that will affect your business, you could save yourself from a bad business deal and improve your chances of long-term success.