Monday, May 15, 2017

The Real State Of Small Apartment Buildings

Residential properties being constructed right now consist mostly of single-family homes and high-rise buildings (such as condominiums or apartments.) However, this was not historically the case because small apartment buildings used to be a staple of city neighborhoods, particularly heavy residential areas.

Many urbanists have been bemoaning the scarcity of new small apartment buildings, as it has proven to be the most cost-effective options for residents.

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Based on affordable housing nonprofit organization Enterprise Community Partners and the University of Southern California, the residence type that gives renters the lowest price is an apartment building with two to nine units. For a nation that is comprised of more than 45 percent of millennials still living in their childhood homes, cheaper rents are a welcome development.

Unfortunately, for this same reason, developers have ceased building these small-sized and midrise buildings—- they have not yielded profits. The latest zoning rules have made it more favorable for developers to either put up, as mentioned above, single-family constructions or apartment buildings that have dozens to hundreds of residential units.

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Building codes are being written, though, to encourage and incentivize the development of smaller apartment structures, or what experts have begun to call as the “missing middle.”

Eugene Bernshtam is the head of real estate development company Avalon Holdings, LLC, and its affiliated entities. He specializes in apartment buildings and mixed-use properties. Visit this website for more information about Mr. Bernshtam.




Monday, April 10, 2017

Cars: The Passion And Commitment

Men love their cars. It’s one of those objects of bonding between a father and his son and between friends. There’s something about cars that just ignites interest. There are as many reasons men adore their roving machines as there are men. But what is it about cars that consumes them?

Image source: cnbc.com
Is it because the car will never leave? According to some, one reason men find cars special is that, unlike girlfriends or wives, a car won’t leave. They will stay and this is very important. Also, there’s this sense that a car understands whatever it is a man is going through and the car will unquestioningly go where he will go. It can seem juvenile but that sort of personification is part of it.

There was a time young men rushed to get their licenses and find ways to get their first cars even if it meant getting an after school job. They poured their time, energy, and whatever material wealth they had into these machines, partly because they were a way to impress women but also because they allowed a means of self-expression. A car was a means to get out of the house, find like-minded individuals, and hang out.

Image source : bloomberg.com/asia
The car is an exterior manifestation of who the man wants to be or how he wants to be seen. Forget the fact that he’s far from looking like Mad Max. He has his mechanical steed and he’s out looking for an adventure.

Cars constitute a passion for Eugene Bernshtam and he’s gained a reputation for his efforts in restoring cars and for collecting these powerful machines. Visit this LinkedIn page for more about cars.

Wednesday, February 15, 2017

The Different Levels Of Auto Restoration

Those looking to restore classic cars should decide what level of restoration they aim to pursue to determine expectations and the budget needed. The four different levels commonly used are the following:

Driving restoration

Restoring a classic car to driving condition focuses on making the vehicle functional and operational. Non-working parts under the hood and by the chassis are replaced, while there are minor cosmetic upgrades done to make the car look decent enough and make sure it can be legally driven on the road.

Image source: pinterest.com

Street show restoration

For a classic car to be in street show condition, it should be in good, working condition, while major cosmetic changes are made. There is a 100-point universal system in rating the state of a classic car, and for a restored auto to be in street show level, its rating should have at least 80 points.

Show car restoration

Whereas street show restoration centers on making a classic car to look good, show car restoration has an objective of restoring the car to its former glory, making the car appear like it used to when it was released off the production line. On the said 100-point rating, professional judges would rate the car in the 90 to 95 range.

Image source: youtube.com

Concours restoration

The highest level of restoration is the concours condition. Most of the time, the cost of a concours restoration would be higher than purchasing the same car when it was brand new. Apart from the replacement of functional and aesthetic parts, other works are done, such as upholstery and additional body or mechanical works. These vehicles are not meant to be driven.

Eugene Bernshtam is an avid car collector and is heavily involved in car restoration. He is also the head of real estate investment and development firm, Avalon Holdings LLC and its affiliate entities. Read more about him by accessing this LinkedIn page.

Tuesday, January 10, 2017

Commercial Real Estate: To Buy Or To Lease?

Without a doubt, a part of succeeding in business is contingent on where it's located, so there are many things to consider when it comes to selecting facilities. One such concern is whether it's more prudent and beneficial to buy or lease the commercial property.

Image source: Wikipedia.org

Buying property will mean a higher upfront cost compared to getting a lease. Some may also argue that the money one may put down for a mortgage could actually be better put to use reinvested in the business. Leasing also gives the business owner peace of mind in as far as having to maintain the property – property management and maintenance typically falls to the landlord although it's the renter's duty to report any issues that may come about during the lease period. It's also worth thinking long-term; is the business expected to expand and may therefore require the company to transfer somewhere else later on? These are some just some points that make leasing a better option for a business owner.

On the other side of the spectrum, despite the bigger initial cost of buying a facility, doing so will be cheaper if the company plans to stay in the same location for a long period. Owning one's place of business may also prove beneficial to those who want more control over how their commercial property is used. For instance, one may want to renovate the space or extend operating hours that other landlords may not agree to. Buying a property is also a good investment if the purchase comes at a good time, and within a location where property values are increasing.

Image source: Wikipedia.org
However a business owner wishes to proceed, it's always best to consult with an expert both in the business one hopes to succeed in and in the real estate industry to learn how to maximize the benefits of leasing or buying a property.

Eugene Bernshtam is a real estate develop with years of experience and head of Avalon Holdings, LLC and its affiliates. Learn more about the real estate industry by visiting this blog.

Wednesday, November 23, 2016

To Sell Or To Rent: Some Important Considerations

The beauty of real estate is its ability to generate income while providing a basic necessity. Many business-savvy homeowners are viewing their homes as a means to earn money. When they do decide to go into business with their property, they are torn between renting out or selling their homes. Either decision has the potential for high and fast income, but with certain factors that should be weighed in:

Image Source: money.usnews.com

The big and the small: The most important question is how much the homeowner needs and how long he or she is willing to wait to realize income. A complete sale yields a lump sum (usually a down-payment), including slightly smaller monthly deposits. Once the amount is fully paid, house ownership then officially transfers to the buyer. Renting, on the other hand, plays out over an indefinite period and the homeowner receives passive income for longer. However, homeowners are still the official title holders, so they are still responsible for maintenance and tax.

Image Source: entrepreneur.com

The tax: There are tax incentives to renting. The government assesses income tax based on rental fee at the ordinary tax rate. However, this can be written off with the costs associated with renting. So, for example, if one’s gross rental income annually is US $50,000 but incurred rental expenses are at US $30,000, the owner is only taxed on US $20,000.

Another heavy consideration is the incurrence of rental expenses including insurance, advertising, legal, and accounting fees. If these are not handled correctly, a homeowner can risk paying double for mortgages both on the rental and personal residence.

Eugene Bernshtam is an expert in real estate investment and other associated topics. Learn more about the industry when you follow this Twitter account.

Wednesday, November 2, 2016

An Introduction To Real Estate Development

Real estate development isn’t easy. There are a lot of things to learn. Attempting to absorb and grasp all the philosophies and concepts real estate development has to offer can lead to a crippling case of information overload. Aspiring developers should start with the basics. Here are a few introductory notes for young people looking to dive into the world of real estate development.

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First, people should know the type of property that needs to be developed. Who will the property be developed for? What market? What is the status of the contractors in the city? What kind of property management needs to be done? For commercial properties, what kind of commercial property will be built? Will it be for business or recreation? Will it house offices or food establishments? These are just some of the questions that need to be answered.

Image source: bls.gov

Once the initial research is done, the planning stage comes next – with a whole lot more research. Potential development areas should be studied carefully. Pros and cons have to be weighed.

Next, real estate developers compile everything in a presentation, which they present to banks (for loans), prospective investors, or investment companies. After which, they begin the land survey, while coming up with the list of requirements for the pertinent government permits.

Eugene Bernshtam is the CEO of the commercial real estate investment and development firm Avalon Holdings LLC and its affiliated entities. Learn more about real estate development when you subscribe to this blog.