Why JR Real Estate Group
Reinventing land acquisition and entitlement
Our work procedures and processes have evolved to be the best in the market for land owners. Throughout a simple and clear process, it has been guaranteed that landowners have great experience when they choose to work with JR Group.
Our business model has been established to provide what the market needs: a transparent, local, and experienced land buyer. Our land acquisition professionals are dedicated to meeting the needs of each acquisition and development opportunity with superior service built upon integrity, excellence, professionalism, and responsiveness.
- Raw land
- Redevelopment of improved land
- Parcel assemblage
We are equipped with Top Market Partners
Throughout the years, we have developed an excellent practice to achieve a high success rate on approvals for our proposed developments.
Our team of land planners and civil engineers is well equipped with planning and zoning knowledge to propose and design communities that align with counties’ long-range plans for the communities.
Areas of Entitlement Expertise:
- Comprehensive Plan Amendment
- Special use permit
Whether you’re looking to earn a quick return through wholesaling or flipping, or earn ongoing passive income from rental properties, there are dozens of strategies and types of real estate investing.
Most real estate assets fall into one of three classes:
1. Residential: Properties with 1-4 units. The most regulated and the most popular among mom-and-pop investors.
2. Commercial: This wide umbrella includes multifamily (5+ units) apartment buildings, office space, retail, industrial, and other types of commercial real estate.
3. Land: From completely raw land to semi-developed land to working farms, land can make an extremely profitable investment, but it comes with its own quirks and niche knowledge required.
Real estate investments make a particularly effective source of income for financial independence and/or retiring early.
The benefits of investing in real estate are numerous. With well-chosen assets, investors can enjoy predictable cash flow, excellent returns, tax advantages, and diversification—and it’s possible to leverage real estate to build wealth.
1. Potentially high return on investment
The biggest advantage of property development is the potential to generate significant return on your investment. However, identifying a property development opportunity that is likely to deliver the desired level of return can be extremely challenging, especially for first-time developers.
2. Often shorter length of investment
Speed is a critical factor with all property development projects and the aim of every developer is to complete the development and sell the property in the fastest time to ensure the highest possible profit and annualised return. If you get it right, property development can deliver profits faster than other types of investments such as bonds and shares.
3. Greater stability
Over time, property has proven to be a more stable investment when compared to other investment options. Despite it’s up and downs, the property market as a whole tends to be a lot less volatile than other markets, such as the stock market. This may be due to the fact that property takes a longer time to sell (whilst shares can be sold in a second) and the fact that property is almost always in demand.
4. Investment leverage
This simply means that when purchasing property, you can purchase more with less. You invest your funds and the bank loans you additional funds in the form of a mortgage. Leverage helps to maximise your return on investment when you experience growth.
Land investment is a crucial real estate investment you want to know about. Land as an investment can be a boon- it offers investors better returns at lower risks and the opportunity to diversify their portfolios.
Below are six surprising reasons to help you understand why land is a lucrative investment in 2021 and will make you invest in land.
1. Land is in Short Supply
First things first, land, as a resource, is becoming more scarce over time and becoming more expensive. There’s nothing we can do to make more land. We’ve limited land in the USA, as the population increases, the demand for land and cost increases too. Still, you can buy dirt-cheap land in some states of the USA.
2. Owning a Piece of Land Gives Peace of Mind
Some benefits of land ownership can change how you perceive land investments. Land can be called a ‘golden child’ of investing. Once you complete the buying process, you can rest assured; no one can steal it from you or destroy it. A piece of land remains in good condition and increases in value. Owning land gives you financial security and peace of mind. Experts recommend raw land investing and buying land for future development, such as housing or building. No maintenance is required, and you can sell your land at a higher price in the future. Thus, we can say land investments give peace of mind and are worth every penny!
3. Land Is a Tangible Asset
Investing in a vacant piece of land is significantly less risky than stocks. It cannot disappear or lose its value all of a sudden. In the worst scenario, currency and monetary values will have no stability. Regardless of the world economic situation, the value of land constantly increases.
4. Land Investments Are Less Competitive
Most investors with investment capital prefer developments, house flipping, condo buildings to gain profits. Generally, high competition is a primary concern when people think of investing. But when we specifically discuss land investments, it’s surprisingly different. This real estate niche has low competition; you can buy a few acres of land in a suitable location without burning a hole in your pocket.
5. Land Is Low-Priced
Unlike other real estate assets, the land is affordable and requires minimal effort for maintenance. You don’t need to pay utility bills, mortgages, or roof repairs and replacements. Another advantage is the owner of the land doesn’t need to pay for the insurance. Property taxes are the cheapest, so your property doesn’t demand unexpected costs and silently increases in value.
6. No Risky Government Legislations
Landowners do not need to worry about rules to maintain risk-free ownership of the property. Consequently, there’s no need to hire lawyers to ensure you meet government requirements.
Whether you’re coming from a long career in residential property or you’ve never invested in real estate at all, CRE can be a smart place to put your money. But why commercial real estate? Here are 11 reasons you might want to consider it for your real estate portfolio.
1. High income potential
The biggest reason to invest in commercial real estate is simply its potential. Commercial buildings come with higher rents and price tags, and thus higher potential for returns, too. Instead of making a few hundred dollars on a rental home every month, you could make thousands, tens of thousands, or even more if you choose the right properties.
2. Tax benefits
There are also tax benefits that come with commercial real estate investments. First, you have depreciation, which can allow you to deduct a portion of your property’s value from your taxable income each year. For many investors, this reduces the total tax burden quite significantly.
3. Less competition
Residential real estate is incredibly competitive — especially right now — which has driven prices upward for some time. CRE, on the other hand, is seeing an opposite trend. The dollar volume for commercial real estate in the U.S. was 57% lower year over year in the third quarter of 2020. So it should be easier to find a commercial property right now, especially compared to other assets on the market.
4. Plenty of investment opportunities
Commercial real estate investment options run the gamut: You can invest in a full-scale mall or high-rise office building, or you can keep it small, putting those dollars toward a single storage facility, an industrial warehouse, or just one condo community. There’s a lot of flexibility both in what you can invest in and where you can do it.
5. Less turnover
If you’re from the world of residential real estate, this will probably excite you. Unlike apartments and single-family rentals, commercial real estate doesn’t typically operate on one-year lease agreements. Instead, most tenants sign three-year agreements at minimum. This reduces turnover (and the hassle and cost associated with it) and also helps ensure stable cash flow for your business.
6. More help maintaining (and improving) your property
With commercial properties, the maintenance, upkeep, and improvements generally aren’t all on you. For one, many operate using triple net leases. These put the majority of the property-related expenses on the tenants’ shoulders — things like taxes, insurance, maintenance, and even utilities.
On top of this, most tenants are generally more invested in keeping up the property than your standard residential tenant would be. Since they’re a business — and likely trying to market to clients of their own — they’ll be more dedicated to keeping the building in good repair. They might even make some improvements to the space that increase your property value over time.
7. Fewer problematic tenants
Tired of dealing with residential tenants who just won’t pay up or will leave the place in shambles after their lease is up? Sick of tenant disputes and renter complaints? With commercial real estate, things are usually a bit more professional.
Since you’re working with business owners — ones with reputations to protect and dollars on the line — they’re typically more careful in both working with landlords and following the rules. This results in a lot less hassle for the investor/property owner.
8. More off-hours
Don’t confuse my words here: CRE takes a lot of work. But the number of hours you’re getting calls from tenants or heading up to the property? They’re a lot more limited than in the residential world.
In the commercial sector, the majority of your tenants are operating on your typical, 9-to-5 schedule. It typically means more “time off,” in the sense you can be away from your phone and not on call for more hours in the day.
9. A more diverse portfolio
If you’re already heavily invested in residential real estate, CRE can be a smart way to diversify your portfolio. As 2020 taught us, you never know what’s going to happen — with the economy or in the world. So having your investments spread across different assets is one of the wisest moves you can make in the long run.
10. Good deals may be on the horizon
COVID-19 didn’t bring much positive news to the world, but for future CRE investors, there might just be a silver lining. Thanks to increased work-from-home arrangements, as well as the overall economic downturn, interest in some sectors of commercial real estate waned in 2020.
The dip has allowed CRE prices to decline a bit — at least in some sectors. According to the October 2020 RCA CPPI: U.S. summary report, U.S. commercial real estate prices rose at a 1.4% annual rate from September 2019 to 2020, a noticeable slowdown from the mid-single-digit growth rate in 2018 and 2019. Though prices on apartments and industrial properties actually rose (up 6.7% and 7.4% year over year, respectively), properties in the retail and office building sectors saw prices drop (5.3% and 1.5%). Depending on how long the pandemic stretches out, those prices in weaker sectors could fall even further.
11. It’s proven
Finally, CRE is simply a proven, worthwhile investment.. Tons of mega-wealthy investors have made fortunes in commercial real estate and continue to do so.
- Evaluate its economic feasibility
- Determine the offer price
- Find out what the land is zoned for
- Secure your financing
- Begin building within zoning laws
- Market the land/property to sell