When you invest in occupied walls, you seek to make the best possible investment according to your objectives, to do so you must not only see the immediate return offered by the tenant in place and for various reasons.First, it can go according to the terms of the lease or go bankrupt, if you bought too expensive (with an over-rent), you will be forced to re-let at the market price and your yield will automatically drop.Then you too will one day be called upon to "arbitrate" (assign your property),...
DefinitionThe commercial lease governs the relations between the lessor (owner of the walls) and the lessee (operator or tenant). This contract is an important element of the business.Its minimum duration is 9 years.How to study a commercial lease ?Studying the commercial lease is an important part of selling occupied walls, since you buy walls with a tenant.As part of your acquisition of occupied walls, you must also study the location and quality of the tenant, we deal with these cases in other...
When investing in occupied walls, you need information to make your acquisition decision. We have seen how to study the quality of a location and the quality of the commercial lease. We will now study a tenant's file, we will focus on the "business" tenant, the study of the "residential" tenant being largely treated elsewhere.Consistency between the commercial premises and the activityThe first element is common sense and does not require documentation or calculation. Are the occupied walls still...
DefinitionLocation is the most important concept in real estate, we sometimes tend to say that it is the only one. The famous rule: location, location and location. This can be played a few meters away.This applies to all market players, professional or not, residential real estate or commercial real estate.We are going to be interested in this last category.How to define the right commercial location?The location appeals to everyone's common sense. Each brand, each operator or each lessor has its...
Although it is advisable to have a contribution when we negotiate his loan for a rental investment, it is obviously possible that the bank will grant us the loan for that it will be necessary to build his investment project in a certain way .First, the contribution reassures the banks because it corresponds to your ability to finance your project. We will therefore have to reassure them otherwise. Although lenders are able to offer loans without down payments as part of an investment in a rental...
The value of occupied walls is largely based on the yield (see article calculating a yield), that is to say on the ratio between the rental income and the cost of the property. Example: for a rent of € 10,000 per year, the investor expecting a gross return of 5% per year, he will be ready to pay the occupied walls € 200,000. The first important information to know is therefore the return expected by investors for the asset in question in a given geographic area. We will then see the possible returns...
In any investment what matters and what we will expect is profitability. Firstly, the return is essential because it represents the gain that we will receive but also because this calculation makes it possible to compare several returns and therefore constitutes a real decision lever. The return on a property investment is fairly easy to calculate. Indeed, you need certain data such as the monthly payments of your loan, the monthly payments of the future tenants and the future charges. The yield...
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