Commercial audit: recognizing and evaluating criteria of a property

Elisa — Wed, 08 Dec 2021 15:49:17 +0000

Commercial check – You have determined your maximum purchase price and are now faced with the commercial check, so that the previously determined and determined budget is adhered to. This audit is particularly important for the purchase of the first property such as apartment or house, that with it unnecessary costs and mistakes are avoided in the real estate purchase. This audit includes not only the cost, but also the inspection and defects by year of construction and maintenance of a building. Read all about the purchase audit here!

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Commercial audit: criteria of a property

Before buying a property should be checked in any case. The commercial examination is based on the data with which one can compare real estates, like the rent yield and the purchase price factor, own use or capital investment or in which situation one should buy. For the examination one should absolutely make a checklist with all negative points, in order to be able to sort out better.

Audit for capital investors

The commercial audit is particularly concerned with the existing rental agreements if you buy an apartment unrented or rented. This point is particularly interesting for capital investors, because if you are buying for your own use, then you should rather invest in an unrented property.

The test in steps:

Lease contracts check
Rent arrears and rent increase
Non-allocable costs
Reserves and arrears

Step 1: Checking leases

Operating costs can be passed on to the tenant, which you should definitely check in an existing lease.

Is it possible to pass on all current operating costs to the tenant?
Is there a deposit?
Are there any special features in the lease agreement?

Step 2: Rent arrears or rent increase

These peculiarities occur when it was agreed that tenants must return the apartment renovated when moving out.

Are there any outstanding rent arrears?
Are there active rent reductions?
When was the last rent increase?

Step 3: Non-allocable costs

Here one should carry out a quick market analysis for comparative rents. If the building in which you invest in an apartment has an elevator, you should be careful. An elevator must be repaired or maintained every few years. These high costs usually have to be borne by the tenant and cannot be passed on to the tenant.

Are non-apportionable costs expected?

Step 4: Reserves and arrears

For this purpose, it is essential to check the maintenance reserve of the condominium association on the basis of the last statement of condominium fees, as well as the amount of the total amount of condominium fee arrears. If there are individual condominium owners who have been in arrears for more than four months, then the probability of a default is high. Accordingly, special assessments may be the consequence.

How much is the maintenance reserve of the homeowners’ association (WEG)?
Are there any house money arrears of the WEG?
Has the collection of resolutions been reviewed?

The next step: operating costs in the house

You want to buy an apartment, but the operating costs are too high for you? There is a solution! The operating costs of a property, such as a condominium, can be apportioned to the tenant. But which of these operating costs can be apportioned and what do you have to pay yourself as a landlord? Read all about the operating costs of your next property here!

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Real estate financing book: loans, financing without equity or building savings contract, tips

Lisa-Marie — Fri, 02 Oct 2020 15:00:57 +0000

Real estate financing – You want to buy a property – for example a single-family house, an old apartment or even a loft or country house, but you don’t know how to finance your dream? Terms like loan, interest, credit, repayment or building society contract only raise more questions for you? Here you will find all the important information on the subject of real estate financing: from financing with equity to financing without equity to applying for a loan, we cover all the important topics! Real estate, renting, taxes, learn how it’s done here. If you’re interested in the topic of real estate financing, then the topic of getting started in real estate may also be relevant to you.

Real Estate Financing Guidelines

Financing real estate made easy! We have compiled tips, tricks and the most important information on the subject of real estate financing for you, so that you too can realize your dream of owning your own home! Do’s and Don’ts, tips and experiences from experts will guide you and answer all your questions about “How to finance a property”. Become a professional and make no more mistakes in the future!

Real estate financing and purchase (external & free of charge)

Learn from the experts. You can find many, many more guide articles for free at Lukinski. Learn everything you need to know about buying real estate for free. Start in general with buying real estate, go over your specific type of real estate, from apartment, to house, apartment building to buying land. Also important: everything about the purchase contract (who pays the costs?), incidental purchase costs and saving taxes with real estate, through legal forms such as a real estate GmbH or family foundation. Here you can go directly to the topic: Real estate financing in comparison.

Tip! Overview Real Estate XXL

The world of real estate is complex and multifaceted. If you want to keep an overview and avoid making mistakes, you should prepare well and clarify as many open questions as possible in good time. No matter whether you want to build, buy and rent out a property or live in it yourself, or even use a property as an investment to generate passive income: The preparation is the A&O. Here you will find articles, as well as book and video tips with successful and helpful books and videos on the subject of real estate – including tips and tricks from professionals and experts.

Book & Video Tips Overview: Real Estate

Real estate financing: the right strategy for capital investors

Rating: 4.5 from 5.0 (53 ratings)

The secure way to tailor-made financing: For owner-occupiers of a property, it is all about the favourable financing of the property. For capital investors, it’s about the best possible financing conditions for the rented property. With this pocket book you will find out which financing plan is suitable for you. The guidebook answers all the important questions about money for a house or apartment, whether for the initial financing, a modernization or follow-up financing.

Income and equity ratio: how much house can you afford?
Interest rate strategies: How long are you tying yourself down for, and which lender has the lowest mortgage rates?
Repayment Strategies: As an owner-occupier or landlord, what repayment percentage is best for you to choose?
Financial aid: How do you use money from the KfW and Wohn-Riester when financing your own home?
Buy at Amazon

Real estate financing without equity

Rating: 4.3 from 5.0 (40 ratings)

In this guide, you will learn how you can fulfill your dream of home ownership, even if you do not have any equity today. Do not hesitate and deal with the topic of home ownership today. Even if you think real estate is expensive, it won’t get any cheaper in the medium term. The longer you pay rent, the more expensive it will be for you in the end.

Why should you look into buying an owner-occupied property right now?

Interest rates are at an extremely low level, making financing very favorable
Real estate, like all tangible assets, is protected against inflation.
Very often the monthly charge as a tenant is higher than paying off your loan
Real estate is the ideal retirement provision
You actively build up your assets through monthly repayments

Also learn in this book

How to be perfectly prepared for bank interviews
How to improve your Schufa score
What grants you may be able to apply for
Why a granny flat will make you debt free sooner
How you can get equity from relatives without them having to give you a single euro
Buy at Amazon

Practical guide to real estate acquisition and financing

Rating: 4.4 from 5.0 (45 ratings)

The practical guide is written for all those who want to buy or build their own (credit-financed) property in Germany. The author presents the topic in a clear and easy-to-understand manner, introducing both legal and economic issues in a concise and detailed manner. The contents are illustrated by examples with concrete calculations and references to the current legal situation. The calculation tool helps to determine the actual costs of loan financing.

Buy at Amazon

Real estate practice manual for owner-occupiers

Rating: 4.8 from 5.0 (27 ratings)

Buying, building and financing your own home are long-term and far-reaching decisions. In this guide, you’ll find comprehensive information and checklists for buying a used property and building a new one on your own. As a bonus, an Excel calculator tool for real estate loans is available. With this guide, you will be able to organize the purchase and financing well and avoid expensive mistakes.

From the contents:

Purchase of a second-hand property
Buying a new property from a developer
Purchase of a plot of land & construction on own account
Special features when buying a condominium
Purchase in the compulsory auction
Strategies for intelligent financing with loans & equity
State subsidies for home ownership (e.g. Wohn-Riester)
Calculation tool for loan financing
Buy at Amazon

Real estate financing for owner-occupiers

Rating: 4.6 from 5.0 (54 ratings)

Real estate is still considered a solid investment. Interest rates are low, prices vary greatly from region to region. And the small print in banks’ loan agreements is becoming increasingly complex. To see through the pitfalls of buying a house, you need expertise. This book will help you develop it: in estimating the purchase price, in structuring the sales contract, and in financing. In the end, you’ll negotiate smartly and on equal footing with sellers, realtors, and banks to get the best outcome for your family.

“This is by far the best book on financing your own four walls that I have read. Anyone who reads this book and heeds its advice is sure to save a lot of money and, most importantly, avoid unnecessary risks. Anyone who thinks they don’t need this book has only themselves to blame.”
Dr. Rainer Zitelmann, real estate investor, founder of the consulting firm Dr. ZitelmannPB. GmbH

Buy at Amazon

Real estate financing: Understanding banks

Rating: 4.3 from 5.0 (26 ratings)

What is the best way to prepare for a real estate purchase? What do you need to consider when financing? There are many books and financial magazines on this topic, but this guide is different. With this book you get a practical guide to the topic of real estate financing. In an entertaining and reader-friendly way, the author succeeds in explaining the pitfalls of real estate financing in a simple and understandable way. With the help of many practical examples, Dirk Nopp clarifies even the most difficult topics and explains technical terms in such a way that even laymen understand them.

Buy at Amazon

Construction financing guide

Rating: 4.6 from 5.0 (4 Reviews)

This book helps with the important question of financing:

How do I draw up a budget?
How do I calculate the monthly charge?
What additional costs should I expect?
How much real estate can I afford?
After how many years will I be debt free?
What financing options and loans are available?
What do all the financial terms mean?
Buy at Amazon

Construction financing: The best way to a house or condominium

Rating: 4.2 from 5.0 (7 ratings)

The foundation stone for your own four walls!

Important building block for old-age provision, independence from landlords – owning a property offers a number of advantages. That’s why many people dream of owning their own house or condominium. To ensure that the dream does not turn into a nightmare, the financing must be on a solid footing – because the decision to buy usually means an economic burden that lasts for decades.

This guidebook supports you on your (financing) way to your own property Well structured and understandable, it answers, among other things, the questions:

How do I calculate the cost of purchase or construction?
How do I determine my financial resilience?
Which type of construction financing is most favorable for me?
How can I benefit from the Wohn-Riester subsidy?
With many tips, examples, checklists and the “ABC of construction financing”.
Buy at Amazon

Overview real estate XXL: Investment, broker, renting & Co.

Here you get back to the overview of book and video recommendations on the subject of real estate in Germany. Investment cases, capital investment, passive income, house or apartment buy and rent and much more is explained to you here by experts and understandable. In this XXL guide you will find information and articles on the most diverse questions on the subject of real estate.

Back to Book & Video Tips Overview: Real Estate

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