If you’re looking for a Commercial Investment Property with fixed rate equity, then look no further. I will provide a bit of information to help you select the right Commercial Investment Property for your needs. When I say fixed rate equity, I am referring to returns on your investment, not to initial investment. In other words, if you invested $1000 and it increases by ten percent, does that make you a better investor than you were at the start? Of course not, but now you see where the problem is.

Joint tenancy (JT), can have two owners in just one property. Can acquire interests at various times throughout the year.

Each joint tenant is entitled to equal ownership (although not identical share in profits), so the propety actually goes up in value each year! The problem is that there are often large movements from tenants to joint owners. This causes the property’s equity (the difference between the amount of equity contributed by the joint-tenants to the overall value of the property) to decrease. This is actually a net increase to the overall value of the property, since there is no increase in the equity due to the increase in equity of the joint-tenants.

The solution to this problem is to add on another mortgage to pay off the joint tenancy. Many homeowners choose to “create” a second mortgage for this purpose. This second mortgage is secured with the equity already existing in the property. If the property’s value decreases because of fluctuating market conditions, the mortgagee is protected. This is especially helpful in “short sales”, when there are few prospective buyers and sellers, and when the properties are in “crisis” stages, wherein the sellers are unable to get their asking price for the properties.

It is also possible to create two streams of income. One method is to use the rent from the tenants to pay the mortgagee, while simultaneously paying the costs of maintaining and building the properties. Another method is to charge tenants a fraction of the cost of building and maintaining the home. Both methods can bring in a steady income, although the former is easier to achieve. However, if both parties agree to share the cost, it is usually easier to have a steady income.

Propety is a highly desirable property to buy, but it has a downside. If the owner does not pay the mortgage, it becomes “tenant-equiped”, and the tenant cannot normally sell the property, unless it is “affordable rent”. Thus, although a propety might represent an excellent opportunity to purchase a property at a bargain, it is often not advisable to buy a propety simply because it is a joint tenancy with tenants.