National ADA defense, Business, Real Estate Blog

Commercial real estate owners in California may be concerned about the growth they could face in property insurance rates. In 2019, there were 14 severe weather incidents across the country, including tornadoes, flooding and heavy winds that caused billions of dollars in damages to homes and commercial properties. According to an insurance broker, commercial property investors are paying higher premiums than they were a few years previously due to escalating costs attributed to natural disasters. Over the past eight quarters, property insurance rates have escalated for commercial real estate owners.

In past years, property insurance rates declined over 16 straight quarters, or four full years. Three major hurricanes, Irma, Harvey and Maria, caused commercial real estate insurance rates to begin to increase. In 2019 alone, office, industrial, hospitality and multifamily properties have seen their insurance premiums rise by 16% as an average. California property owners may be facing even greater increases than others because the state, along with Florida and Texas, faced more substantial losses linked to hurricanes and other natural disasters. Property owners in these areas have seen a 22% increase, but those in areas that have directly experienced weather damage have been paying rates of up to 50% higher.

Tiny homes have become popular in California and throughout much of America. Generally speaking, these homes offer about 400 square feet of living space, and they are designed for those who are seeking a minimalist lifestyle. While they may be attractive to their current owners, tiny homes can be difficult to sell. This is partially because they won't be included on the multiple listing service, or MLS, which means that sellers have to reach out to buyers directly.

In many cases, sellers will find buyers through social media or through other networking channels. While finding buyers may be harder when trying to sell a tiny house, preparing a house for sale is the same no matter how large it is. Ideally, homeowners will make repairs, create a proper list price and create a video tour of the property. It is also a good idea to take good photos of the home and to stage it correctly.

If California homeowners believe that their homes are haunted, they may not share that belief with potential buyers. A poll from Realtor.com found that 60% of those who purchased an allegedly haunted house didn't know about its haunted status prior to doing so. The poll also found that home buyers weren't necessarily concerned about living in a haunted house or living next to a house that neighbors thought was haunted.

Individuals may mistake eerie shadows or weird noises as evidence that a ghost is living in a house. They may also believe that the presence of hot and cold spots in a home could be evidence of a paranormal phenomenon in their houses. Finally, some believe that they have actually been touched by a ghost or a spirit. According to the Realtor.com poll, about 20% of respondents say that they have lived in a haunted house at one point in their lives.

When people plan to get involved in the California real estate market, they may be planning to finance their investments in a variety of ways. Some people might be investing cash, while others may use FHA loans or home equity loans to get started buying commercial real estate. There are also special commercial real estate mortgages that are especially designed for investors. Unlike a traditional residential mortgage, these types of loans close quickly and qualifications are based on rental income and investment history. Typically, they offer shorter lending terms and some are designed specifically for short-term financing processes.

Hard money loans are one type of a commercial real estate financing vehicle. They are backed by the value of the property being purchased, and lenders will be interested in its value after repairs and potential on the market. In addition, medium-term and bridge loans are designed for periods of several months to several years and are meant to finance short investments. These loans are not issued by traditional mortgage lenders like those used to finance a home purchase. An investor's application is evaluated on the basis of the investment itself and their history in real estate more than on their credit score.