Should I Use a Hard Money Loan to Invest in Commercial Real Estate?

If you are an investor looking to diversify your portfolio and increase your annual dividends, commercial real estate is a wise investment to make. Just keep in mind that investing in commercial real estate or rental properties is not as straightforward as buying and selling your stocks. Many commercial real estate investors prefer more of a backseat, usually opting for crowdfunding operations or even real estate investment trusts for financing their acquisitions. But for those, perhaps yourself included, who wish for more of a direct ownership approach, a hard money loan could be a profit-effective, fiscal opportunity to explore.

Continue below to learn more about taking out a hard money loan for commercial real estate investments, plus some of the most noted pros and cons.

Commercial Space Planning Permitting Indianapolis Indiana 317-253-0531
Commercial Space Planning Permitting Indianapolis Indiana 317-253-0531

Short Term Lending With Hard Money Loans

A hard money loan is a type of short-term cash advance used by commercial real estate investors as leverage so they can adequately finance their investment prospect. Most commercial lenders and conventional banks do not offer hard money loans. These loans are primarily issued by private lenders.

Often times, such loans are used by commercial proprietors looking to quickly renovate and remodel a property for resale. Hard money loans are also a popular choice among investors because they can actually cut through the red tape, which makes the acquisition process much faster. And the faster you can acquire an investment property, the sooner you can turn on that cash-flow.

Advantages of Hard Money Loans

Although there are several intricate and perpetuating advantages of using a hard money loan, the main ones are easy, quick turnarounds and loan flexibility. There are many times when a commercial real estate investor is presented with a great investment opportunity and does not have time to waste jumping on it. While traditional loan processes can drag out, potentially causing an investor to lose out on the deal presented to them, hard money loans tend to release funds a lot faster.

Hard money loans are also advantageous in terms of loan forgiveness and flexibility. Not only is it more effectual to negotiate with a private lender on the terms and conditions of such loans, but it is possible to restructure payment schedules, customize loan maturity dates, and even reduce some fees.  

Disadvantages

When it comes to investing, where there are advantages, there are always a few disadvantages. As for hard money loans, the same expectation applies. Although there are good pros of hard money loans, there are some cons that might sway your decision to move forward. For starters, hard money loans are easy and convenient, and convenience costs extra. Such loans are more expensive, which can be considered a disadvantage to some.

Furthermore, hard money loans are used as bridge financing, so their terms are much shorter than traditional loan arrangements. Basically, you have less time to pay off a hard money loan than you would with a conventional loan.

Are you looking for a qualified commercial general contractor to help you with your real estate acquisition and space planning needs? Contact BAF Corporation at 317-253-0531 for professional commercial construction management and space planning in Indianapolis, Indiana.

Related Posts:

What to Consider When Selecting a New Investment Property
How to Minimize the Costs of Owning a Distressed Commercial Property
Why is Commercial Real Estate Market Space Listed as Class A, B or C?

What to Consider When Selecting a New Investment Property

Many experts will agree that investing in commercial real estate is a wise endeavor. Several of the most successful businesswomen and men in the world have an investment property or two within their portfolios. If you are currently searching for some income-generating commercial real estate to invest in, continue below to review some top considerations that will help you be the most successful with your business enterprise.

Commercial Preconstruction Indianapolis IN 317-253-0531
Commercial Preconstruction Indianapolis IN 317-253-0531

Commercial Real Estate Research

When you are preparing to view potential investment properties, research and strategy are essential. The more you know, the more successful you will be in choosing the right properties for your business objectives. Ultimately, you want your commercial property to produce income. In order to achieve this goal of profitability, it is critical to know what to look for. Here are 5 key considerations that will help in your search:

Location

When it comes to real estate of any kind, location will always be a top priority, as it is always a top factor in terms of filling vacancies. Everyone looking to rent wants the best location they can find, but for commercial real estate, some locations are better than others. Think about the surrounding infrastructure, current construction activity, roadway systems, ease of access, interstate/highway entry, surrounding retail, seasonal activity, population, and more.

Existing Listings and Vacancies

Another important consideration when viewing potential income properties is the current vacancies and active listings included. Are there a high number of active listings? How reliable are they? Is the number of active leases influenced by seasonal activity or cycles? These are important questions to ask. As for vacancies, the same need applies. High vacancy could mean a future of low rental rates and mediocre profitability, while low vacancy can portend higher rental rates due to higher demand for space.

Property Taxes

Your next consideration is property tax. After all, you can’t avoid Uncle Sam, especially in the real estate industry. With each new viewing, you need to have a full understanding of the property tax requirements. But do not be scared off right away by high property taxes, as this could be an indicator of just how high in demand the location is. This is common among Class A commercial properties. Also be aware that high property taxes can exist in less desirable neighborhoods as well.

Average Rental Rates

Numbers are important for any type of investment, so knowing the average rental rates in the neighborhood and surrounding region is a vital step toward selecting the right investment property.  The rental income for an investment property is the main contributor to your investment’s profitability. You should perform a comprehensive rental history evaluation and cost foreseeability analysis to fully understand just how much rental income you might be looking at, now and in the future.

Future Development

Smart business people are forward-thinkers. And with choosing a commercial real estate investment property, it is important to understand the potential for future growth and expansion. You can rely on the municipal planning department to provide information on any localized developments that have already been zoned. Furthermore, you want to touch on the volume of construction currently taking place in the area. If there are many, it is suggestive of an area in high demand or showing significant growth, both of which would be beneficial to your bottom line.

Are you looking for a commercial management team to help you with preconstruction service in Indiana? Contact BAF Corporation at 317-253-0531 for preconstruction services in Indianapolis, including commercial space planning and permitting. We serve clients all throughout the state of Indiana.

Related Posts:

The Importance of Commercial Space Planning Service
Recommended Office Space Dimensions for Class A Properties
What to Consider Before Buying a Distressed Commercial Asset

Eco-Friendly Construction Practices to Consider for Your Project

Green Commercial Construction Indianapolis Indiana 317-253-0531
Green Commercial Construction Indianapolis Indiana 317-253-0531

If you are preparing to plan a new build or construction project, honor Earth Day and the environment as a whole by incorporating some of the best Eco-friendly construction practices. Aside from Earth Day, these green construction practices are quickly becoming the industry standard for all building projects. Continue below to learn how you can work alongside your commercial general contractor to ensure your project aims to protect the environment and preserve our natural resources using Eco-approved construction practices!

Indiana Commercial Construction Building 317-253-0531
Indiana Commercial Construction Building 317-253-0531

Green Construction is the New Standard

Not only do green construction practices help our planet by protecting the environment and preserving our natural resources, but it also saves builders money. Eco-friendly construction is cost-efficient, making it a fast-growing trend, soon-to-be standard in the construction and building industries. Some key elements of green construction include recycling, repurposing, locally sourcing, and using green building materials.

Construction Recycling

You would be absolutely appalled at the amount of scrap that gets thrown out during some construction site cleanup hauls. Fortunately, the construction and building industry are beginning to make construction site recycling a standard. In fact, many municipalities require it. All items that are recyclable, from paper and cardboard to metal, electronic scrap, bitumen roofing, and more, are gathered and transported for processing and recycling.

Repurposing in the Construction Industry

Repurposing and reusing materials are excellent ways to support the environmental movement, plus cut back on construction and building costs. Existing systems, compatible building materials, reclaimed materials, and more can be modified and adapted to a new construction project, thus reducing renovation costs. For instance, if a building that is being renovation has ceilings or millwork that are very close to the project’s specifications, the commercial general contracting team would present this information to the client and provide options for making the existing framework or systems work.

Green Construction Materials

There are several ways to go green when it comes to choosing your construction materials and procuring additional materials, post-build. Some energy efficient commercial building designs that are currently trending in the construction and building industry include Leadership in Energy and Environmental Design (LEED) design, Net Zero commercial building designs, Passive House commercial building, solar paneling, prefabricated metal buildings, and low-VOC materials. These strategies will help your project meet local building codes and national energy code requirements.

Local Sourcing

Sourcing construction materials locally has proven to be a significant effort toward preserving our resource and protecting the environment. By locally procuring as much construction materials as possible, you support and boost the local economy, which is important, but you also reduce the need to ship materials long-distance. Local sourcing is also good for budget management and reducing shipping expenses.

Are you ready to learn how you can turn your construction plan into an Eco-friendlier version? Contact BAF Corporation at 317-253-0531 to speak with a licensed and insured commercial general contracting representative in Indianapolis. We serve clients all throughout the state of Indiana.

Related Posts:

How to Improve Efficiency Through Innovative Office Design
Why is Commercial Construction Engineering Important?
Cost Cutting Advice for Commercial Renovations

Top Renovations That Will Increase Rental Property Revenues

Whether you are a real estate owner of a single family home or a massive, multi-unit housing complex, these top home remodeling renovations will have the most impact on your overall return on investment (ROI) by exponentially increasing your rental income.

Commercial General Contracting Company Indiana 317-253-0531
Commercial General Contracting Company Indiana 317-253-0531

Remodeling Tips to Boost Rental Revenue Per Tenant

Painting and Drywall

A fresh coat of paint is the easiest and most instantly gratifying method of increasing your rental income. New paint makes a property look fresh, and even cleaner. Furthermore, it can displace leftover smells from prior tenants, if any. In addition to a fresh paint job, be sure you are also addressing drywall damages. Dents, depressions, nicks, holes, and cracked joints should be repaired to add more value to your paint job.

Flooring

One of the first things potential renters see is the flooring. Whether carpet, laminate, tile, or hardwood, floors are an important element for them. So, start your renovations with professional carpet cleaning or replacement, or with full-on flooring replacement. Floor cleaning and flooring replacement are two key renovations that can instantly make your rental property worth more.

Pending Repairs

Your next point of interest is to repair anything that is broken. Whether it just came to light a few days ago or has been lurking around your To-Do list for years, making important repairs to your property is an effective and proven method of adding more value to your renters. Thus, you can increase the rent based on your property’s amenities and overall value. From indoor and exterior lighting to bollard posts, driveways, appliances, drywall, and more, fixing what’s broken is a good starting point for increasing rental income.

Kitchens and Bathrooms

Although flooring is one the main elements of a property that a potential tenant will focus on initially, their next priorities are usually the bathrooms and the kitchen. Focus on these areas when planning your renovation budget so that you can earn the most return on investment for your rental properties. Consider minor and major remodels, from painting cabinets and replacing hardware, to installing new fixtures, converting tubs into spacious showers, buying new kitchen appliances, and similar changes. Simply talk to a licensed commercial general contractor to learn how to constructively consider a residential kitchen remodel or easy ways to remodel a master bath.

Basement Conversions

If you have an unfinished basement in your rental property, you have a gold mine of opportunities to increase your rental income. By remodeling a basement, you are instantly and drastically raising the true market value of your rental property. You will get more money per month, plus be able to resell it for a higher price when the time comes! Attics and other areas work well for this type of space conversion ROI.

Are you looking for a trusted commercial general contracting company who can deliver outstanding results for your business remodeling or real estate development project in Indiana? Contact BAF Corporation at 317-253-0531 for reputable commercial construction remodeling in Indianapolis and its surrounding counties.

Related Posts:

How to Attract More Tenants to Lease Your Rental Property
Top Building Remodels That Will Entice New Commercial Tenants
6 Building Features That Corporate Tenants are Looking For

Commercial Remodeling Options for Concrete Pool Decks

If you are the proprietor of a spa, fitness center, school, recreational/sports facility, rehabilitation clinic, hotel, apartment complex, or an entire residential real estate development, you likely have a swimming pool or hot tub on premises. If so, it is important that seasonal pool maintenance remains a top priority on your company’s Spring To-Do list. In fact, concrete pool deck upkeep is an imperative part of protecting your bottom line. Not only can a damaged or defective concrete pool deck pose several hazards and liabilities, but it can also negatively impact your company’s, reputation, and ultimately your profits.

Continue reading to learn what you can do to economically remodel a damaged or outdated concrete pool deck, plus who to trust in Central Indiana for superior commercial general contracting service.

Commercial Pool Remodeling Indianapolis Indiana 317-253-0531
Commercial Pool Remodeling Indianapolis Indiana 317-253-0531

Commercial Pool Deck Remodeling

Concrete pool decks are a wonderful option because they provide both beauty and function. Choosing a cooler, lighter colored pool deck is a wise choice for sensitive feet in the hot sun, while opting for a textured stamped pool deck can provide added traction and reduce slipping accidents. Not only do concrete pool decks offer safety and performance, but they also offer an unparalleled level of beauty with the vast array of custom styles available. Furthermore, they are inexpensive, easy to install, long-lasting, and low maintenance!

Nonetheless, concrete will begin to show signs of wear and tear, and thus, require a certain degree of maintenance or repair. Fortunately, there are some economical ways to renew the look of the concrete pool deck.

Concrete Resurfacing

Damages like cracking, spalling, and scaling can be remedied with commercial pool deck resurfacing. This type of concrete resurfacing project can be accomplished with a concrete overlay or micro-topping, depending on the size and existing condition. This is a lucrative option since it effectively covers blemishes and provides a fresh surface to paint, color, or texturize.

Concrete Etching

Concrete etching is a custom service that can both restore and enhance the look of a concrete pool deck. It is a suitable option for pool decks showing signs of discoloration, fading, and minor cracking. By engraving a pattern into the concrete pool deck, cracks and blemishes can be intentionally disguised. The process starts with concrete coloring, and then finishes using a special routing machine that cuts faux grout lines. 

Concrete Recoloring

To cover ghastly blemishes, like stains, fading, and discoloration, concrete recoloring is the perfect method. Simply applying fresh color to a commercial concrete pool deck will enhance the appearance and cover unsightly imperfections. This service can be achieved using concrete stains, color hardeners, integral pigments, and other coloring methods.

Are you ready to get your commercial concrete pool deck in order before the rush of the season starts back up again? Contact BAF Corporation at 317-253-0531 for licensed and certified commercial general contractor services in Indianapolis Indiana. We serve clients all throughout the state.

Related Posts:

How to Cater to Club Members During a Fitness Center Remodel
Top 3 Healthcare Facility Construction Trends for 2020
Modern Wheelchair Accessibility Options for Commercial Properties

Commercial Office Design Tips to Improve Workspace Inclusivity

When it comes to designing and building a commercial office that incorporates a healthy, functional, and all-encompassing workspace, it is helpful to consider the different perspectives of inclusivity, and what it really means to the individuals who will be utilizing the space. Continue below for some tips on how to improve workspace inclusivity through smart commercial office design and build solutions, plus who to trust for seasoned general contracting services in Central Indiana.

Commercial Office Construction Indianapolis Indiana 317-253-0531
Commercial Office Construction Indianapolis Indiana 317-253-0531

A Diverse Workforce Demands Inclusive Workspace

The workforce today looks a lot different than it did generations ago. With so much diversity among employees, it is necessary to take the individual needs of each into consideration when planning your commercial office space. How can you design a space that allows staff to perform their best? Higher employee contentment directly links to higher productivity, which ultimately impacts your bottom line as a business owner or commercial real estate developer. Consider demographic factors like age, culture, and religion, as well as physical and psychological factors, such as disabilities, mental health, comfort, security, interest, and more.

With all of these important demographic, physical, and mental factors in mind, you can better design and build a commercial office space that is fully inclusive and functional for your diverse staff, today and for years to come. Begin by focusing on the incorporation of collaborative work areas and quiet spaces, as well as flexible design strategies and team feedback.

Collaborative Design With a Focus on Equity

Incorporating collaborative workspaces in the office can improve inclusivity among staff. Design areas that employees can gather for projects and work assignments, whether to work together or simply in the company of one another. But be sure that all employees can equally access and utilize these collaborative spaces. For example, consider the height, weight, emotional, and physical abilities of your current and future staff. ADA commercial construction and building code requirements help set the foundation for this objective, but additional smart design schematics can improve the level of workspace inclusivity even more.

You do not want someone to be excluded from using a team space because they cannot access it for reasons of physical disabilities or because they are differently-abled. Additionally, you don’t want anyone to experience difficulties utilizing the space due to mental and emotional preferences or conditions. Some people are more social and extroverted, while others are reclusive and shy. Will your collaborative team spaces suit a wide range of personalities? Do not be afraid to ask your staff for suggestions on designing a more inclusive workspace. This is also an effective way to gain perspectives on how your employees view their work like and daily routines.

For this reason and more, collaborative spaces in the office are just as important as quiet workspaces in the office. Accordingly, you want to aim for a neutral color and design palette as to not disrupt or distract employee productivity, nor trigger migraines, stress, anxiety, seizures, and other health implications.

Flexible Design for Future Growth

When designing a commercial office aimed for success, it is imperative to keep your sights on the future of the company. Integrating reasonable flexibility in the design of your workspace will prevent limiting the future growth of your business, allow you to easily shift with the changing environment of the industry, and more effectively respond to the needs of your staff. Aim for a commercial office design with a timeless aesthetic so that it will not quickly appear outdated. Additionally, plan your office design in a way that does not limit the means by which you can use it.

Are you looking for a commercial general contracting company that can bring your design build vision to life? Contact BAF Corporation at 317-253-0531 for commercial office remodeling and commercial-use construction in Indianapolis, Indiana. We serve clients all throughout the state.

Related Posts:

How to Improve Efficiency Through Innovative Office Design
Why Design Build Construction is the Right Choice for Your New Business
What is a Build-to-Suit Commercial Lease?

The Average Cost of Constructing a Commercial Building

One could argue that, in the eyes of a real estate developer or investor, the most important element of constructing a new commercial building is cost. After all, cost has a direct correlation to profit, which is arguably the ultimate purpose of building and constructing new real estate. Initial thoughts are generally focused on developing basic fiscal expectations, but because there are so many factors involved in determining the overall cost of commercial construction, it can be almost impossible to gauge the exact amount of capital required to finish your particular project.

Continue reading to learn what you need to know about calculating the average cost of constructing a commercial building, plus which commercial construction company in Central Indiana to trust for superior project results.

Indianapolis Indiana Commercial Construction Company 317-253-0531
Indianapolis Indiana Commercial Construction Company 317-253-0531

Budget Planning and Preparation for Commercial Construction

With the right budget planning and preparation, you can maximize your business’s utility, function, and overall operational efficiency, plus artistically depict your organization’s culture, all while remaining within your anticipated budget. You can achieve. These objectives and more with the help of a licensed Indiana commercial construction management company.

There are several methodologies that can help you and your commercial general contracting team accurately calculate the total cost of your commercial build, such as precision budget analysis, economic data integration, cost foreseeability charting, and contingency forecasting. A skilled commercial construction company will have the proper knowledge, training, and resources to properly apply and implement these methodologies for more accurate cost evaluation.

Common Commercial Building Cost Considerations

Although every commercial construction build is unique, there are some baseline costs that can help you establish a fundamental outline for a budget. Your commercial construction management team can help you determine which baseline costs to include in your budget outline.

Factors that will most likely influence the total cost of your commercial construction project include the size and scope of the build, the building square footage, building location, intended use of building, building structure assembly, building codes, zoning/permitting, architectural design, and much more.

You also need to consider the costs for fire protection systems, security systems, HVAC requirements, and plumbing. Additionally, there are other costs considerations that may come into play with your commercial construction project, like the market demand for the materials being used for your project and similar economic conditions.

Are you ready to begin the planning and preconstruction process for your new commercial build in Indiana? Contact BAF Corporation at 317-253-0531 for professional commercial general contracting services in Indianapolis, Indiana. We serve commercial and industrial clients all throughout Central Indiana.

Related Posts:

General Contractor Advice on Building a New Commercial Space
Why Many Commercial Proprietors are Choosing Prefabricated Metal Buildings
6 Building Features That Corporate Tenants are Looking For

A Comparison of Ballasted and Mechanically-Fastened Roofing Systems

Are you a commercial real estate developer working on a new design build project? If so, you’ll soon be considering your options for roofing. Although there are many commercial roofing options available, not all will be the right fit for your build. It is important to choose a roofing system and assembly that is compatible with the design and structure of your commercial building.

Currently, the two leading commercial roofing systems on the market are ballasted roofs and mechanically-fastened roofs. Continue reading to review a brief comparison of both, and better understand which options meet your specific design build objectives.

Commercial Roofers Indianapolis Indiana 317-253-0531
Commercial Roofers Indianapolis Indiana 317-253-0531

EPDM Rubber Roofing Basics

Before jumping into a comparison between ballasted and mechanically-fastened roofing systems, it is important to have a basic understanding of commercial rubber roofing. EPDM roof membrane (ethylene propylene diene terpolymer) is the most common thermoset roof membrane in the industry. EPDM roofing mainly contains two compounds, ethylene and propylene, which are derived from oil and natural gas. In terms of installation, they are either fully-adhered, mechanically attached using batten bars, or ballasted. In this blog, we will be discussing the difference between mechanically-fashioned EPDM roofing and ballasted EPDM roofing.

Ballasted Roof Systems

Ballasted roofing installation involves laying loose layers of insulation sheets atop the roof decking, followed by sheets of EPDM roof membrane. Sheets that adjoin are overlapped and fastened using seam tape. Next, all accessible points and the perimeter of the roof are sealed or flashed in accordance with technical specifications. Lastly, river-washed ballast is applied to weigh the entire roofing system down for ultimate security.

Mechanically-Fastened Roofs

Although quite similar in design and performance, mechanically-fastened roofing is installed using a different process and different materials. Starting off with layers of insulation on top of the decking, these roofs are then secured mechanically using insulation plates and fastening hardware. Next comes the layers of EPDM roof membrane sheets over the insulation sheets and plates. Like ballasted roofs, all adjoining sheets are overlapped and secure with seam tape. But rather than being flashed and sealed, they are secured in place using seam plates and fasteners.

Quick Comparisons:

Mechanically-fastened roofing is generally more expensive than ballasted roofing.

Ballasted roofs are most compatible with buildings that have large, open roofs and few roof penetrations. Mechanically-fastened roofs are better suited for buildings with roof penetrations or higher uplifts.

Mechanically-fastened roofs are lighter in weight.

Ballasted roofs usually have a shorter installation timeline.

Roof leaks can be easier detected on mechanically-fastened roofs.

Ballasted roofing is heavier and larger in size compared to mechanically-fasted roofs, and therefore, must be upsized to accommodate the weight of the ballast.

Are you ready to move forward with your commercial real estate design-build project in Indiana? Contact BAF Corporation at 317-253-0531 to speak with an expert Indianapolis commercial general contractor about your commercial construction needs and options, today. We serve clients in all industries and throughout all of Central Indiana.

Related Posts:

 Common Roofing Systems for Commercial and Industrial Buildings
4 Types of Renewable Energy Applications for Commercial Buildings
The 6 Phases of a Design Build Construction Project