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From bad business deals to partnerships breaking down and the work to get capital investments, you may have faced your fair share of obstacles. Real estate investment is not without its challenges. During your research, you may have come across REITs. Are they a more risk-free way for you to grow your real estate investment portfolio? What are REITs? According to Nerdwallet, in 1960, Congress created real estate investment trusts. These provided an avenue for small real estate investors to purchase stakes in larger businesses. Put simply, REITs are the crossroads between real estate and the financial market. There are three types to keep in mind: Equity REITs Mortgage REITs Hybrid REITs What are the benefits of choosing REITs? The biggest draw is that REITs need to return at least 90% of the taxable income to people who hold shares. It also sets rules in terms of how the entity managing the REIT can earn income and invest money. These and other restrictions add some safety features to this security type. Publicly traded REITs and public non-traded REITs register with the SEC and meet the provided guidelines. Are they risk-free investments? Non-traded and private REITs present higher levels of risk. Neither belongs to liquid markets where owners can trade them freely and immediately, compared to publicly-traded REITs. Investors also have a difficult time valuing these REITs, which can further complicate the selling process. Publicly traded REITs might offer a great opportunity to diversify your financial portfolio and your real estate portfolio. However, Congress created REITs for smaller investors with fewer resources and lower disposable incomes. They do not replace managing real property investments. A more profitable angle for you to consider is whether you can create REITs for your investment properties to obtain more capital investments.

When handling a real estate dispute, you may find it tempting to turn to litigation right away. But this is not necessarily your best option. While litigation has its place in the resolution of disputes, it is not the only card on the table. So what are your other options, then? And which one will do you the most favors in your current dispute? Role of a mediator FINRA discusses alternative methods to litigation. Two of the most popular ones are arbitration and mediation. Both offer less expensive options that also take up less time. Mediation allows you the most freedom. A mediator does not have the ability to pass down a legally binding decision like arbitrators or judges. Instead, they help facilitate discussion. They step in if arguments get out of hand and ensure all parties say their share. A mediator may also put their advice and opinions forward. This is often valuable, as they act from the standing of a neutral third party. But in the end, the final decision on how to handle the dispute is up to you and the other involved parties. Role of an arbitrator If your dispute involves higher assets or a more vitriolic disagreement, mediation may not hold enough weight. In this case, consider arbitration. It functions closer to litigation. An arbitrator listens to everyone present their side of a case. Then, they make a legally binding decision on how to handle the matter that all parties must abide by. You still get to skip the court date and related hassle, but it provides more structure for bigger arguments. What works best differs from situation to situation. If you want more insight, you can speak to a legal professional about yours.

When handling a real estate dispute, you may find it tempting to turn to litigation right away. But this is not necessarily your best option. While litigation has its place in the resolution of disputes, it is not the only card on the table. So what are your other options, then? And which one will do you the most favors in your current dispute? Role of a mediator FINRA discusses alternative methods to litigation. Two of the most popular ones are arbitration and mediation. Both offer less expensive options that also take up less time. Mediation allows you the most freedom. A mediator does not have the ability to pass down a legally binding decision like arbitrators or judges. Instead, they help facilitate discussion. They step in if arguments get out of hand and ensure all parties say their share. A mediator may also put their advice and opinions forward. This is often valuable, as they act from the standing of a neutral third party. But in the end, the final decision on how to handle the dispute is up to you and the other involved parties. Role of an arbitrator If your dispute involves higher assets or a more vitriolic disagreement, mediation may not hold enough weight. In this case, consider arbitration. It functions closer to litigation. An arbitrator listens to everyone present their side of a case. Then, they make a legally binding decision on how to handle the matter that all parties must abide by. You still get to skip the court date and related hassle, but it provides more structure for bigger arguments. What works best differs from situation to situation. If you want more insight, you can speak to a legal professional about yours.

Whether you rent property to a commercial tenant or you are a residential landlord, housing discrimination is a topic you need to understand. Landlords have rights and responsibilities, and every year, many face harsh repercussions due to discrimination complaints. Sometimes, landlords do not realize that certain actions are against the law. If you are in the middle of a discrimination complaint or you want to avoid breaking any laws, take a closer look at this issue. What are some examples of housing discrimination? On their website, the California Department of Fair Employment and Housing outlines multiple examples of unlawful housing discrimination. According to the DFEH, landlords cannot legally discriminate against tenants and prospective tenants based on their racial background, age, immigration status, gender or religious views. Landlords who refuse to rent to a protected individual on the basis of these attributes or provide unfair terms in rental agreements sometimes face charges, as well as those who terminate a rental contract because of a tenant’s race or gender. Sexual harassment and retaliation against a tenant who files a complaint are also against the law. What are the consequences of housing discrimination accusations? Housing discrimination can result in legal costs, civil penalties and fines related to the emotional toll of discrimination. Moreover, tenants who are able to successfully work through a housing discrimination case are also entitled to housing that a landlord denied, in some instances. Aside from the financial impact of housing discrimination charges, these cases often carry a heavy emotional toll and lead to significant damage with respect to a landlord’s reputation.

Whether you rent property to a commercial tenant or you are a residential landlord, housing discrimination is a topic you need to understand. Landlords have rights and responsibilities, and every year, many face harsh repercussions due to discrimination complaints. Sometimes, landlords do not realize that certain actions are against the law. If you are in the middle of a discrimination complaint or you want to avoid breaking any laws, take a closer look at this issue. What are some examples of housing discrimination? On their website, the California Department of Fair Employment and Housing outlines multiple examples of unlawful housing discrimination. According to the DFEH, landlords cannot legally discriminate against tenants and prospective tenants based on their racial background, age, immigration status, gender or religious views. Landlords who refuse to rent to a protected individual on the basis of these attributes or provide unfair terms in rental agreements sometimes face charges, as well as those who terminate a rental contract because of a tenant’s race or gender. Sexual harassment and retaliation against a tenant who files a complaint are also against the law. What are the consequences of housing discrimination accusations? Housing discrimination can result in legal costs, civil penalties and fines related to the emotional toll of discrimination. Moreover, tenants who are able to successfully work through a housing discrimination case are also entitled to housing that a landlord denied, in some instances. Aside from the financial impact of housing discrimination charges, these cases often carry a heavy emotional toll and lead to significant damage with respect to a landlord’s reputation.

A California real estate partnership may offer many advantages, and particularly if you need to expand your access to resources, capital and related opportunities. Embarking on a real estate partnership also involves inherent risk, though. It is important that you take steps to minimize these risks and protect your interests as much as possible. According to Medium, there are several tactics you may want to employ to protect yourself when establishing a real estate partnership. Some recommended steps are as follows. Establish a limited liability company If you have equity in an investment property, consider creating an LLC and then transferring the title of the property to it. Why? Doing so helps protect your home or other personal assets in the event that someone attempts to hold you liable or files a judgment against you. Say, for example, that a tenant suffers a serious injury as a result of the conditions at your investment property. Having an LLC shifts the liability away from you personally, thereby protecting your personal assets. Determine who holds what roles When entering into a real estate partnership, be sure to be clear about roles and expectations. Determine who is going to be active in the partnership and whether any silent partners exist. Clarify, too, who holds decision-making authority when it comes to your investments, and when. It also may serve you well to determine how long you want to the partnership to last. Taking time to make these considerations before disputes arise helps protect your assets and interests and may, too, save you substantial money in the long run.

A California real estate partnership may offer many advantages, and particularly if you need to expand your access to resources, capital and related opportunities. Embarking on a real estate partnership also involves inherent risk, though. It is important that you take steps to minimize these risks and protect your interests as much as possible. According to Medium, there are several tactics you may want to employ to protect yourself when establishing a real estate partnership. Some recommended steps are as follows. Establish a limited liability company If you have equity in an investment property, consider creating an LLC and then transferring the title of the property to it. Why? Doing so helps protect your home or other personal assets in the event that someone attempts to hold you liable or files a judgment against you. Say, for example, that a tenant suffers a serious injury as a result of the conditions at your investment property. Having an LLC shifts the liability away from you personally, thereby protecting your personal assets. Determine who holds what roles When entering into a real estate partnership, be sure to be clear about roles and expectations. Determine who is going to be active in the partnership and whether any silent partners exist. Clarify, too, who holds decision-making authority when it comes to your investments, and when. It also may serve you well to determine how long you want to the partnership to last. Taking time to make these considerations before disputes arise helps protect your assets and interests and may, too, save you substantial money in the long run.

With the shift to remote work, many office buildings are currently sitting empty. This is likely to change over time, but some studies indicate that companies are not planning to return to full office use. PwC has conducted extensive surveys to learn what businesses expect their next move to be and how their use of commercial real estate may change in the future. Survey statistics Only 13% of the executives who participated said they would go fully remote and forgo the office entirely. Employees also believe that the office plays two important roles: team collaboration and relationship-building. As far as maintaining company culture, the largest percentage of executives in the survey, 29%, said three days per week was probably sufficient. While 87% of executives plan to change their real estate strategies during the next year, not all of them are thinking of downsizing. In fact, 56% believe they will need more office space, not less. Functions and locations Forbes explains that whether they downsize or increase their office spaces, many companies are rethinking how to maximize their use. Companies that plan to maintain a location have quite a few options. For example, they may have core offices and coworking spaces, and/or they may use flex space and virtual offices. Considerations include the purpose of the space and how often employees need to be there and why. To meet their new needs, companies anticipate looking for geographically dispersed locations for client-engagement hubs and collaborative sessions. This could translate to fewer individual offices and more meeting rooms in many locations. Commercial real estate owners may need to become more flexible with their lease options and invest in a wider range of office spaces and configurations to draw in these companies.

With the shift to remote work, many office buildings are currently sitting empty. This is likely to change over time, but some studies indicate that companies are not planning to return to full office use. PwC has conducted extensive surveys to learn what businesses expect their next move to be and how their use of commercial real estate may change in the future. Survey statistics Only 13% of the executives who participated said they would go fully remote and forgo the office entirely. Employees also believe that the office plays two important roles: team collaboration and relationship-building. As far as maintaining company culture, the largest percentage of executives in the survey, 29%, said three days per week was probably sufficient. While 87% of executives plan to change their real estate strategies during the next year, not all of them are thinking of downsizing. In fact, 56% believe they will need more office space, not less. Functions and locations Forbes explains that whether they downsize or increase their office spaces, many companies are rethinking how to maximize their use. Companies that plan to maintain a location have quite a few options. For example, they may have core offices and coworking spaces, and/or they may use flex space and virtual offices. Considerations include the purpose of the space and how often employees need to be there and why. To meet their new needs, companies anticipate looking for geographically dispersed locations for client-engagement hubs and collaborative sessions. This could translate to fewer individual offices and more meeting rooms in many locations. Commercial real estate owners may need to become more flexible with their lease options and invest in a wider range of office spaces and configurations to draw in these companies.

As someone who may not be familiar with commercial leases, you may encounter terms that confuse you. It is important to not only read over your commercial lease but to also lookup unfamiliar terms to understand the agreement you are about to enter. Gross Leases According to FindLaw, gross leases are a very specific type of commercial lease that lays out requirements for both you and your landlord. Like with flat or fixed leases, you must pay a predetermined amount for rent. In a gross lease, however, there may be a clause that allows the landlord to increase that rent once a year. Typically, the landlord is responsible for the operating costs of the unit. This may or may not include utilities such as heat, cooling and electricity. Net leases Net leases allow landlords to increase the rent when they occur an increase in their costs as opposed to waiting once a year. Per this type of commercial lease, you will usually pay a portion of the expenses in addition to the rent. Under some net leases, you may also be responsible for paying up to the full amount of real estate taxes. Step leases Step leases combine some elements of both gross and net leases. Rent increases occur once a year and are meant to offset the landlord’s increase in expenses. Whereas rental increases under a net lease are based on realized increases, step leases include raises based on estimated increases instead. Cost-of-living leases As the name suggests, cost-of-living leases increase rental costs based on the cost of living. As the cost of living increases, your rent will increase as well. Being sure to understand your lease requirements before you sign can help you avoid problems in the future.

As someone who may not be familiar with commercial leases, you may encounter terms that confuse you. It is important to not only read over your commercial lease but to also lookup unfamiliar terms to understand the agreement you are about to enter. Gross Leases According to FindLaw, gross leases are a very specific type of commercial lease that lays out requirements for both you and your landlord. Like with flat or fixed leases, you must pay a predetermined amount for rent. In a gross lease, however, there may be a clause that allows the landlord to increase that rent once a year. Typically, the landlord is responsible for the operating costs of the unit. This may or may not include utilities such as heat, cooling and electricity. Net leases Net leases allow landlords to increase the rent when they occur an increase in their costs as opposed to waiting once a year. Per this type of commercial lease, you will usually pay a portion of the expenses in addition to the rent. Under some net leases, you may also be responsible for paying up to the full amount of real estate taxes. Step leases Step leases combine some elements of both gross and net leases. Rent increases occur once a year and are meant to offset the landlord’s increase in expenses. Whereas rental increases under a net lease are based on realized increases, step leases include raises based on estimated increases instead. Cost-of-living leases As the name suggests, cost-of-living leases increase rental costs based on the cost of living. As the cost of living increases, your rent will increase as well. Being sure to understand your lease requirements before you sign can help you avoid problems in the future.

Commercial real estate investments in California encompass a range of niche markets drawing both experienced investors and green professionals looking to expand their portfolio. One of the challenges in a bustling market is the ability to stay competitive. Investors who identify personal strategies for success and strive to improve their competencies can maintain a competitive edge even with the constant influx of investors. Thinking outside the box Finding promising investment opportunities requires days and sometimes months of grueling research. Investors often have strict criteria they have identified as playing a crucial role in making any opportunity worthwhile. While they should establish some boundaries, The Motley Fool suggests that investors should think outside of the box. While a piece of commercial real estate may appear one way, investors can make more informed decisions after considering a variety of scenarios and a variety of outcomes. They may look for other opportunities looming in the shadows of obviously promising investments to identify lesser-known options that could also have a favorable outcome. Refining the management aspect How effectively investors can manage their property directly correlates with their success. The Motley Fool encourages investors to establish a consistent method for property management. Several factors impact management strategies including the following: Property size Property location Property uses Zoning requirements Some commercial real estate investors choose to manage their properties on their own. Others rely on a third-party to facilitate property upkeep and maintenance according to requested standards and timelines. Regardless of how investors choose to manage the properties in their portfolio, they should use consistent, reliable and effective methods. Keeping their properties in optimal condition can make a considerable difference in their ability to remain competitive.