Gene Bernshtam: ROI Potential of Mixed-use Property Development

Gene Bernshtam is a real estate investor and developer who has undertaken numerous mixed-use development projects. He advises anyone looking to invest in a mixed-use property to study all available information first on the economic factors and market potential of the project to protect their investment. While every type of investment poses a risk to the investor, this risk can be mitigated through a carefully planned and developed profit-earning strategy. To further expound, Gene Bernshtam shares the following:

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A mixed-use property is called as such primarily because the structure was built to serve two distinct purposes: residential and commercial. Gene Bernshtam says that typically, in a mixed-use building, the commercial establishments are found on the first floor and the residential units start on the second floor and up—with office spaces also taking up one or two floors. Commercial establishments could include retail shops, restaurants, and residential services like a laundry shop or Laundromat.

With that said, one way to enhance the earning potential of the property is by integrating commercial services into the residential market, and vice-versa. Gene Bernshtam puts it this way: the commercial establishments and offices in the building should first have a need for one another, and your residential market should, in a way, be the target market of the commercial establishments. In other words, says Gene Bernshtam, your tenants, both commercial and residential, should be “ripe” for a mutualistic relationship, where both players benefit from one another.

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This is important because keeping both happy, and keeping the commercial tenants profitable could mean long-term profits for you as well. This may seem simplistic enough, but you must perform an in-depth analysis of both factors, particularly their market potential at your target location, so that your investment can give you a satisfactory ROI.

 

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A Primer on Mixed Use Real Estate Development by Gene Bernshtam

For real estate developer Gene Bernshtam,  mixed-use properties are a great investment as they can give you regular monthly income from rental fees. But as with any type of investment, a thorough analysis of all factors involved, as well as strategic planning, is critical to its outcome. First off, Gene Bernshtam shares that a mixed-used property is typically a singular structure or building that serves two purposes: commercial and residential. Urban development over the past decade or so has turned to mixed-use property development to address the needs of the public, while also addressing common urban problems like traffic congestion and daily commutes—generally by providing people with the option to reside and work in the same building thereby eliminating the need to drive or commute to and from work.

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Sometimes, Gene Bernshtam adds, a mixed-used project is confused with a multi-purpose development project; probably because they both serve the same purposes: for residential and commercial use. However, a multi-purpose development project generally covers inter-connected structures whereas a mixed-use property is a singular building or structure.

In mixed-use property development, several key factors should be considered first prior to deciding on whether the project is a feasible venture. First, you need to know the market. How will the property fare in terms of market demand and value? Secondly, you need to be aware of local regulations including zoning laws, if any are applicable to your project, and to what extent will this affect the development project from start to finish.

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You also need to decide on the design, taking into consideration your purpose for the project, and the community as well. Finally, there is the financial aspect of the development project. How much is your allocated budget, and what is your estimated timeframe for earning returns on your investment? These and more should be carefully considered, says Gene Bernshtam, because you could end up either earning profits beyond your expectations or losing on your investment big time.

 

The Italian Job: Top Italian car manufacturers

To say that the fame and great reputation of Italian cars are well-deserved is an understatement. The country has produced some of the most sought-after models and designs in the history of the automobile industry. Here are four of the most renowned.

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Image source: classicdriver.com

Fiat

Fiat, which stands for Fabbrica Italiana Automobili Torino, was founded in 1899. With its acquisition of Alfa Romeo and Maserati, Fiat became the largest Italian car manufacturer. Fiat produces a wide range of cars, from small road cars and sports cars to vans and trucks. Fiat has won the European Car of the Year award twelve times.

Ferrari

Few people know that Ferrari started out as a racing team for Alfa Romeo. Ferrari is one of the most respected racing car manufactures in the world; in fact, it’s the only team to have competed in the Formula One World Championship continuously since its founding in 1950. With the passing of founder Enzo Ferrari in 1988, the value of both used and new Ferrari models increased even more.

Alfa Romeo

A year after its founding in Milan in 1910, Alfa Romeo entered two cars in the Targa Florio motor racing event. This began its long association with motor racing. Interestingly, Benito Mussolini actually instructed the company in 1941 to build vehicles for the wealthy.

Lamborghini

With humble beginnings in the tractor business, founder Ferruccio Lamborghini started making touring cars in 1963 with the unveiling of the Lamborghini 350GTV. Lamborghini became a recognized player in the manufacturing industry, gaining acclaim over the years for their high-performance and stylish models, including the 400GT, Miura, Espada, Jarama, and the much-revered Countach.

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Image source: latimes.com

Aside from collecting cars, real estate developer Gene Bernshtam is also very much involved in restoration of classic automobiles. Gene is a member of the Ferrari Club of America (FCA) and the Lamborghini Club of America in Illinois. For more car-related reads, visit this blog.

How to increase the value of your classic car

When collecting or restoring classic cars, one of the owner’s objectives is to improve the value of the vehicle. And there are some ways of doing that do not even require the owner to spend a great deal of money and time. Here are some examples:

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Image source: larrysengine.com

Check part numbers

A classic car may appear in mint condition on the outside, but the most valuable classic cars are those that are still installed with original factory parts. And the best way to know it is to check if the major parts have matching numbers; these parts include the engine, transmission, rear axle. Some other key components that are better if their numbers match as well are the alternator, carburetor, distributor, water pump, and cylinder heads.

If the part needs to be replaced, the part must fit the same make, model, and year as that of the original. Sometimes, old stock parts should be bought, even if it less efficient and durable than newer models.

Pay attention to details

While there is more focus given to the repair of internal parts and the vehicle’s body, the small details should not be ignored. For example, one should check the rubber linings inside the car cabin, if the windows and mirrors are free of stains, and the safety and aesthetics of the tire.

Keep record of maintenance

A detailed record of maintenance activities is proof that the classic car is kept in great condition. Buyers or evaluators tend to inspect the history of the car before purchasing or valuing the vehicle.

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Gene Bernshtam is a commercial real estate investment and development executive who has an affinity for collecting and restoring classic cars. For similar reads, visit this blog.

The Basics Of Car Restoration Explained

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These days, car restoration is no longer just a hobby and an outlet for passion. It has also transformed into a business fed by an endless stream of car clubs, auctioneers, and car enthusiasts who seek the thrills of driving a restored vintage piece.

Beginners can achieve car restoration with the help of a few tools and guidelines. You can start off by purchasing an online guide, which will orient you on how to restore any particular vehicle. It could be something that alters the external look or guides you on how to sand the car appropriately.

Here are some basic car restoration project ideas:

Starting an old vehicle: Today’s cars feature intricate electronic systems and digital technologies. Working with an older vehicle demands the knowledge of working on the choke and tuning the ignition. It’s a rewarding process of implementing old-fashioned methods.

Car repainting: You could learn how to paint the car, as well as work on the car trims by changing or painting them for a fresh, renewed look.

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Sanding metal: The goal when sanding the car’s metallic surface is to NOT create unnecessary scratches. While a relatively simple task, sanding requires the right technique.

Fixing car dents: Pound out small and large dents using just a couple of tools, from a hammer to dollies.

Interior restoration: Also qualifying as a simple car restoration project is working on the seats, flooring, as well as interiors of an older vehicle. You may purchase a DIY kit and restoration guides to do it properly.

Classic car collector and restorer Gene Bernshtam is a member of the Ferrari Club of America (FCA) and the Lamborghini Club of America. For more on car restoration, visit this blog.

How To Differentiate Original, Restored, And Resto-Modded Classic Cars

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Restoring cars is both a fun hobby and a thriving industry, and thanks to shows like “Kings of Restoration” and “Counting Cars,” more and people are becoming attracted to restoring their own automobiles or shopping for already-restored ones. Of particular interest are classic and vintage vehicles.

It’s rare to find original classic cars on the market, meaning ones that have not had any parts replaced, having undergone minimal repairs if any at all and boasts of solid maintenance. It would take a really serious collector-owner to preserve such cars, but now and then these gems do pop up.

Restored classic automobiles are more common and are the standard products in the industry. “Restored” vehicles are those that have been brought back to their factory default setting, by refurbishing using original parts. These parts are often newly made, matching the specifications of the original parts. Sometimes so-called “new old stock” or NOS parts (parts from the actual time of the car’s assembly which have never been sold before) do become available, but these are as rare as brand-new original classic cars.

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Resto-modded classics are those that have undergone restoration but modified using modern parts and new technology. The idea is still to make the car look like the original, but owners of retro-mods decide on changing some parts under the hood for more efficiency in fuel usage, to add modern safety features like brakes and airbags, and to comply with current emission standards.

Gene Bernshtam is a graduate of Loyola Business School with a finance degree, and currently works in the real estate industry. He is a classic car collector and restoration enthusiast. For more on his work and hobbies, drop by this website.

Are Mixed-Use Properties Worth The Trouble?

Mixed-use properties can definitely be worth the trouble and it’s best to just get that point out first.Having commercial establishments on the first floor of a building can easily benefit the community and the building tenants. Who doesn’t want easy access to say, a doctor’s office, a bakery, a deli?Moreover, since there are people always up and about in such areas, whether they’re going home, going to work or for a night out on the town, grabbing a bite, getting laundry done, etc., commercial establishments in residential properties add a feeling of security.Local governments welcome mixed-use properties because they easily bring diversification to the area in terms of people and businesses.

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It also benefits property lessors since money will be coming from two sources — residential and commercial tenants. But as rules are different for each type of tenant, property management can easily be confusing. There are so many benefits to mixd-use properties but there are also challenges in their management that can make property investors and developers think twice.

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The legal requirements concerning residential tenants are wider in scope than those for the commercial tenant. Residential tenants are assured services like water, heating, and electricity, as stated by law.Lessors do have the real power here as they can increase the rent or claim to need the property at the end of a lease period and compel the tenant to either comply or leave.

 
Gene Bernshtam  has been involved in the development of mixed-use properties and repositioning such properties through his company, Avalon Holdings LLC. Read more about what he does with such mixed-use properties in this Google+page .

Restore or customize: What to do with your classic car

Acquiring a classic car entails a big commitment because it is something that involves financial investment and other demands. Thus, it should not be done impulsively. Instead, several considerations must be deliberated on before pushing through with the transaction.

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Image source: kingsparkbodyshop.co.uk

A thorough inspection must be made on the vehicle, and, if possible, with the help of a professional. This is to allow the owner to determine whether to restore or customize the classic car, which are two very different options.

Restoring a car means refurbishing the vehicle to bring back its former glory. While it is not as valuable as original classic cars, it still holds value because of the major work done on it to make it look and perform the same way it did when it was in its prime. Classic car restoration projects can include various tasks, from minor repairs to complete overhaul of the automotive.

But if the owner decides that he wants the car to be unique or modernized, customization is the more appropriate alternative. Custom upgrades enable the vehicle to go beyond its standard specifications; examples are power steering, power windows, and others. Customization also typically comes after auto restoration had been made.

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Image source: aventuramotors.com

Gene Bernshtam is currently the head of real estate investment and development firm Avalon Holdings, LLC and its affiliated entities. He is also deeply involved in restoration and collection of classic automobiles. More discussions on classic cars here.

The Most Difficult Aspects Of Car Restoration

There is a sense of fulfillment in successfully restoring cars. In the process, however, you will be facing costly roadblocks. Here are some of the most painstaking processes car restorers have to hurdle:

Image source: carsownermanual.com
Image source: carsownermanual.com

Removing rust. You would need to know where to look for rust apart from the obvious on the exterior. Check areas where water is likely to collect such as the lower fender and inner panels under the hood. Use sandpaper with finer grit to minimize damage on the underlying paint, or simply cut out rusted areas, to be replaced with repair panels.

Finding rare parts and pieces. The older and rarer the model, the harder to find and more expensive the replacement parts. You would need to be meticulous about the specifications before ordering because some models are nearly identical upon cursory glance, only for you to find out later on that the piece doesn’t fit.

Image source: stmarysprestige.com.au
Image source: stmarysprestige.com.au

Finding time. Some projects never see it through the end, simply because of the amount of time required in trial-and-error repair and scouting for parts. Car restoration needs commitment, and you must be ready to spend a lot of money and time on it.

CEO and real estate developer Gene Bernshtam is also an avid car collector and engages in car restoration projects. For more blogs on cars and real estate, subscribe to this blog.