Lenders To Avoid – Business Loan And Commercial Mortgage

I have published many articles which are designed to assist commercial borrowers in avoiding commercial loan problems. One of the most serious commercial mortgage business loan situations is a commercial lender that causes problems for their commercial borrowers on a recurring basis. It is particularly this type of commercial lender which prudent commercial borrowers should be prepared to avoid unless viable alternative business financing options do not realistically exist.

As a direct result of my commercial loan experiences advising business owners for over 25 years and regular conversations with other business financing professionals, I do in fact believe that there are a number of commercial lenders that should be avoided. This conclusion is based on a recurring pattern of lending abuses by some business lenders.

This article will not name specific lenders to avoid, but specific examples will be provided to show why informed commercial borrowers should be ready to avoid a variety of business lenders in their search for viable commercial loan solutions. This business financing strategy article will illustrate the significant benefits of avoiding “problem lenders”.

Meaningless Pre-approvals for a Commercial Mortgage Business Loan

An early commercial mortgage pre-approval is often sought by commercial borrowers. The expected advantage to this initial commercial loan approval is that the business borrower can make other business arrangements which are based on the business financing being completed.

An ethical commercial lender will treat any form of business financing approval very seriously. Commercial borrowers should expect that a meaningful version of such an approval will not be realistically possible in just two or three days.

However, there are lenders who prepare a misleading and questionable version of a pre-approval shortly after receiving minimal application data. Because this approach often produces surprises for the borrower as the commercial mortgage process moves forward, borrowers should be wary of any lenders that do this.

Why do some commercial lenders provide such meaningless pre-approvals for a commercial mortgage? There are two likely reasons. (1) To motivate the commercial borrower to stop considering other potential commercial lenders. (2) To provide a business loan pre-approval that is similar to a structure prevalent with residential loans.

Because many commercial loan situations are facilitated by residential mortgage brokers who are typically unfamiliar with normal business financing requirements, this reason will be especially relevant with business lenders that primarily work with residential mortgage brokerage firms. Such a lender should be avoided for most commercial mortgage circumstances.

Commercial Mortgage Loan – Yes or No?

I have published an article which discusses the tendency of many banks to say “yes” when they mean “no”. Such banks will typically attach onerous business financing conditions to commercial loans instead of simply declining the loan. Business owners should explore other commercial mortgage alternatives before accepting commercial financing terms that put them at a competitive disadvantage.

Think Outside the Bank for a Commercial Mortgage

In some non-competitive business markets, it is unfortunately common for a lender to employ business loan terms that would typically not be seen in a more competitive commercial loan environment. Such business lenders can repeatedly take advantage of a non-competitive commercial lending imbalance.

An appropriate response by commercial borrowers is to seek out non-bank commercial loan options. It is neither necessary nor wise for commercial borrowers to depend only upon local traditional banks for commercial mortgage solutions. For most business loan situations, a non-local and non-bank commercial lender is likely to provide improved business financing terms because they are accustomed to competing aggressively with other commercial lenders.

Commercial Property Commercial Loan Appraisals

For commercial mortgage loans, commercial appraisals are an unavoidable part of the commercial loan underwriting process. The commercial appraisal process is lengthy and expensive, so avoiding commercial lenders which have displayed a pattern of problems and abuses in this area will benefit the commercial borrower by saving them both time and money.

Copyright 1995-2007 AEX Commercial Financing Group and Stephen Bush. All Rights Reserved.

Why Do You Need Help Of Mortgage Lender Milwaukee

When you are in need of loans it is very crucial that you search the best Mortgage lender Milwaukee from where you can get the right one.

Many times it might happen that at the time you begin to search for loans you require the right knowledge to end up correctly. The reason behind this is that these days there are a number of different types of loans available in the market and thus you can get the right one. For these things you should be sure of the truth that you looking for the right stuff. This is because only then it would prove to be very helpful to you. At the time you are planning for the loan, check that you carry out research and then finalize the best mortgage lenders. When you follow this it will be a good deal for you.

There are a number of Mortgage lenders Milwaukee present to help you out, one thing that you need to keep in mind is that you need to be careful always while choosing the right one. With this you may get the right type of mortgage loans that you are in search for since a long time. There are a number of basic things that you need to look for at the time you are in search of these mortgage lenders. The first aspect that you need to check always is the reliability as well as credibility of the mortgage lender. Only when you find out that they are trustworthy you can be assured that you will get right loan options and also check that they will be helpful to you further in the future.

Some times there are chances that you will come across a few mortgage lenders who may not have finances but still might be willing to offer you loans. You need to beware of such lenders because if you choose them then there are chances that you would face many problems in the future. There are a number of methods that can help you out to search for the best Mortgage lender Milwaukee but you need to make certain that they ways suit you. The best source through which you can search for the right lender is the Internet.

On the Internet you can get a lot of information and also be assured that you would find the right type of loans that you need. Always make certain that you select providers who have access to various loan providing companies. You will get a number of options and will thus be able to know what is best for you.

Investing In Laguna Beach Real Estate

Laguna Beach is one of the lucrative locations to check if you have a desire to invest in real estate. Investing in real estate is one of the best and solid investment decisions one can ever make. However, truth be told, the location of your home determines a lot how much returns you get out of your investment. In the section below, we shall consider some of the issues you need to consider that would make Laguna Beach in California an ideal location for your real estate prospect.

Why Laguna Beach real estate?

It is through investment that you make perfect use of your money so that you get returns that can secure the future of your loved ones. The most important point to factor when contemplating investing in real estate is how you would get top dollar returns from your investment. True, if you invest in Laguna Beach, you would be sure of huge returns. Some of the reasons why you will get huge returns are as outlined below.

1. Laguna Beach has beautiful scenery and landscaping. Most Laguna Beach homes for sale would feature blue water ocean views and sandy beaches that many holiday travelers prefer. These are the settings that most people would prefer to relax at so you would be sure that your home will always have visitors and this is how you will get high dollar returns.

2. There are great neighborhoods in Laguna Beach which many people prefer exploring. This again makes it a top destination for most people seeking relaxing vacation hence it will fetch huge dollars.

3. There are several beach areas in Laguna Beach and so Laguna Beach real estate is lucrative. Apparently, this peace of paradise makes real estate expensive but it is an all worthy investment to try.

Important tips for investing in Laguna Beach homes for sale

In order that you get the best out of the real estate investment, you have to approach the prospect in a recommended manner. Below are tips that will prove handy to you as you search and invest in Laguna Beach homes for sale.

Investing in any real estate requires patience and determination. The decision you have made is right so you should not let anything interfere with your prospect.

Laguna Beach homes for sale cost a fortune; you should be convinced that you are not making any mistakes. Only work with reliable agents who will help you find newly listed homes for sale both for short sales as well as foreclosures.

Be sure to take advantage of creative financing. Real estate field is quite unique and you have to be certain that your goals and plans in the right way. The options you have are either to rent out the home of sell it off for short term profit but you must weigh the pros and cons of each option and make wise decisions.

If you intend to re-sale the home soon, you must first be sure that you will find a buyer but renting out the home is a better option. Through the rent, you will be able to pay off the home loan and still make some money out of it.

In conclusion, it is a wise idea investing in real estate in Laguna Beach. You must be sure to work with the right agents so you are not shortchanged in between. Finally, make up your mind on what you want to do with the home, look at both sides of the coin critically and make the best decisions.

Eligibility For Property Sales Tax Reductions In Alicante

We all have to suffer the payment of taxes on already bloated property prices. Despite the downturn in the economy forcing a reduction in prices especially in the coastal areas of Spain, many people, especially the young, find it difficult to get on the property ladder in Spain.

This is a result of not just low incomes but also the difficulty in putting together a deposit given the reduced mortgages that are now being offered by the banks here. However, there are some initiatives currently being rolled out in Spain to attempt to make home buying by first time buyers “” as well as other identified groups “” somewhat easier.

This is principally being carried-out by introducing tax-breaks or reductions in the applicable property sales tax rate to these identifiable groups. The central government has devolved the property sales tax rate to the autonomous communities or regional governments in Spain, and all have taken on that responsibility and established the local rate of tax for such operations. Some have also opted to introduce income tax breaks for property investments of various types and by various identified groups in society.

In the Alicante area of Spain, property sales tax rates are set by the Valencia regional parliament and the standard rate is set at 7% in Article 16 Ley 11/2000. This rate is however subject to a number of exceptions as follows:

Ley 13/1997 provides that the acquisition of a property by a person suffering a physical or sensory disability of greater than 65% or a mental disability greater than 33% shall attract a rate of tax of 4% for that part of the property which they acquire.

Article 13 of Ley 13/1997 also provides that where the property being purchased is a property subsidised by the government then it is subject to a tax rate of 4% if the property is going to constitute the main home of the purchaser.

The same reduced rate of tax is applicable to property purchases effected by families considered as ‘large’ “” as per Article 13 as modified by Article 32 of Ley 14/2007. In addition the following criteria must be fulfilled:

– the property is purchased within 2 years of the family achieving the status of being ‘large’
– the property formerly used as a family home must be sold within the same period of time
– the new property must be at least 10% larger in area than the previous home
the total taxable income of the family unit may not exceed “‘44,074

Each of these reduction can represent a significant saving and it is worth confirming with the local office of Hacienda eligibility.

Advantages And Disadvantages Of Lease Option Real Estate Investing

Lease option real estate investing is a creative way to get started in real estate investing. The biggest advantage of this investing method is “control”. It basically gives the investor the right to possess– be in control of– and profit from a property without owning it.

A lease option contract is a combination of two documents. The lease part is where the owner agrees to let you lease their property while you pay them rent for a stated period of time. During the lease period the owner can not raise the rent, rent it to anyone else, or sell the property to anyone else.

The option part represents the right you purchased to buy the property in the future for a specific price. If you decide to exercise your option to buy, the owner has to sell it to you at the negotiated price. The option part of the contract obligates the seller to sell to you during the option period- but it does not obligate you to buy. You are only obligated to make rental payments as agreed during the lease period.

When the lease option contract is written and structured properly, it can provide tremendous benefits and advantages to the investor. If the lease option includes the “right to sub-lease” the investor can generate a positive cash flow by renting the property to a tenant for the duration of his lease, or lease option the property to a tenant-buyer for positive cash flow and future profits. If the lease option includes a “right of assignment” the investor could assign the contract to another buyer for a quick profit.

Lease option real estate investing, is a flexible, low risk, highly leveraged method of investing that can be implemented with little to no money.

High Leverage

It is highly leveraged because you are able to gain control of a property and profit from it now–even though you don’t own it yet. The fact that you don’t own it also limits your personal responsibility and liability. Only if you decide to purchase the property by exercising your “option to buy” would you take title to the property.

Little to no money

The investor’s cost to implement a lease option agreement with the owner requires little to no money out of pocket money because it is entirely negotiable between investor and owner. There are a variety of ways the option fee can be structured such as an installment plan, balloon payment or other agreeable arrangement between both parties. The option fee can even be as little as $1.00. In order to secure the property for purchase at a later date, tenant-buyers typically pay a non-refundable option fee of approximately 2%-5% of the negotiated purchase to the seller. Depending on how the lease option agreement is written and structured, the investor could possibly use the tenant-buyer’s option fee money to pay any option fee owed to the owner.

Flexible

It is a flexible method of real estate investing because terms of the agreement like payment amounts, payment dates, installments, interest rate, interest only payment, balloon payments, purchase price and other terms are all negotiated between seller and buyer. Responsibilities of both parties are also negotiable. For instance, if the investor doesn’t want to act in the capacity of a landlord, he could specify in the lease option agreement that tenant-buyer will be responsible for all minor maintenance and repairs and the original seller will remain responsible for any major repairs.

Financially Low Risk

It is low risk financially. If the property fails to go up enough in value to make a profit, you have the purchased the right to change your mind and let the “option to buy” expire. Even if your tenant-buyer decides not to buy the property, you have profited by a positive monthly cash flow from the tenant-buyer’s rent payments and upfront non-refundable option fee.

Let’s look at an example of a lease with option to buy structured in a way that the investor profits in 3 separate phases of the investment.

Profit #1 non-refundable option fee

Future sales price negotiated with the current owner is $125,000 with an option fee of 2% of the sales price. Option Fee you owe the owner is $2,500. The future sales price you set for your tenant-buyer is $155,000 and the option fee is 4% of the sales price. Option fee the tenant-buyer owes you is $6,200. You collect $6,200 from tenant-buyer and pay $2,500 to the owner and your profit = $3,700

Profit #2 cash flow from monthly rental payments

The Monthly rental payment you negotiated with the owner is $1,000. You set the monthly payment at $1,250 per month for your tenant-buyer. Each month you collect $1,250 from your tenant-buyer and pay the owner $1,000 each month. Your profit is $250 monthly positive cash flow during the lease period.

Profit #3 is set up when the lease option contract is initially written

The difference in the negotiated future purchase price with the owner and the future purchase price set for your tenant-buyer. Let’s say the property goes up in value to appraise for at least $155,000. Your tenant-buyer decides to exercise their option to buy. You buy the property from the owner at $125,000 and then sell it to your tenant-buyer for $155,000. $155,000 – the $125,000 you pay to the owner = $30,000 profit.

Of course the key to making lease option real estate investing work, is finding motivated sellers and buyers. Finding these motivated sellers and buyers shouldn’t be difficult. The continuing down turn in the real estate market has created a large number of sellers who can’t sell their property and also buyers who can’t get financing to buy. The seller could possibly get a fair offer to be paid in the future by selling their property to a real estate investor on a lease option basis. A potential tenant-buyer could obtain home ownership without having to qualify through traditional home loan guidelines.

One disadvantage of lease option real estate investing involves the tenant or tenant-buyer possibly defaulting on monthly rental payments. This would make it necessary for the investor to come up with money out of pocket to pay the owner and possibly have to proceed with eviction process. However, there are certain provisions and clauses that can be written into the lease option to deter buyers from defaulting on payments.

If the investor fails to do “due diligence” before entering into a lease option agreement, he could end up with a property that is unmarketable. There could be a number of liens on it, issues involving ownership of the property or it might be in foreclosure. By diligently performing research before entering into a lease option agreement, the investor can avoid these mistakes. A few things the investor could do is– perform background and credit checks on both the seller and buyer, search public records in reference to ownership and property status, or do a title search.

Despite the few disadvantages, lease option real estate investing continues to be an excellent way to invest in real estate with little to no money and low financial risks. It also remains to be an excellent way to gain control of a property you don’t own and create positive cash flow and profits on flexible terms.

Bottom line, the secret to success in today’s challenging real estate investing market is to use only the best creative ideas, proven tools and strategies that have been successfully used by other investors to generate cash flow and profit from today’s real estate market. The more you understand and apply now, the more you will profit from today’s financial crisis.

Barbados Luxury Condominiums – Attracting Wealthy Individuals

Barbados Luxury Condominiums are in great demand because Barbados has built an enviable reputation as the most attractive place to live and work in the Caribbean. The country has a vibrant economy, which operates in a very stable political and social setting, while excellent infrastructure and modern services are available across the island. It is no wonder that some of the wealthiest families in the world have built luxurious mansions on the islands shores, while many famous film-stars rent luxury condominiums or spend time in 5-star hotels like Sandy Lane Hotel every Winter. The attraction to Barbados is enhanced by the fact that these individuals can come and go without being hassled by the media or the locals. The weather is also beautiful during the Winter months, with temperatures ranging from 26 to 31 degrees Celsius in the day time and from 23 to 25 degrees Celsius at night. With the Atlantic Ocean on the eastern side of Barbados, there is always a cooling ocean breeze to moderate these temperatures even further.

High-net-worth individuals quite often open International Business Companies in Barbados so that they can purchase real estate in the name of their company. This makes it easier to transfer ownership when it is time to sell and realize a handsome appreciation on their real estate investment. They just sell the company, which owns the real estate. Another advantage of Barbados is that all capital-gains are exempt from taxes and taxes on income for I.B.C.s are extremely low (ranging from 2.5% to 1%).

Barbados Real Estate Provides Good Return On Investment

Barbadian real-estate investments have returned a consistent 8 10% per year for the last twenty years. In the last few years, three new golf-courses have been developed with luxurious villas and fairway homes. The latest of these golf clubs is Apes Hill Club, which has been carefully planned so that each resident may take maximum advantage of the view atop one of the islands highest ridges. Many of the lots on this course will allow residents the rare opportunity to view both the West Coast and the East coast of Barbados!
The most recent evolution in Barbados Real Estate development is the rapid expansion of Luxury Condominiums and luxury villas. New projects are being developed on both the West Coast and the South Coast of the island. These luxury condominium-developments have become very popular because they provide common services such as:

Privacy with 24-hour-a-day security-services within a gated community.
Full-service fitness-centres.
Global Concierge management service.
Swimming pool and/or tennis courts.

Other special interests like boating can be satisfied by choosing a development within a marina.

Barbados Luxury Condominiums The preferred Locations

The most popular location is still the beachfront properties on the West Coast, where you can find splendid luxury villas and unique Luxury Condominium developments like Portico, which has won international awards for innovation and world-class quality. Other attractive areas of development include the golf-courses such as Sandy Lane Country Club, Royal Westmoreland Country Club, Barbados Golf Club and the newest luxury properties, which are now available at Apes Hill Club. There are also very attractive luxury-villas being built for those who have a particular interest in Tennis or Polo. There are now several Polo Clubs on the island also, which include luxury villas and the usual gated-community services and amenities that would satisfy even the most discerning individuals.

Several new luxury condominium-developments are also being built on the South Coast of Barbados. With beachfront property becoming very scarce on the West Coast, the demand for beachfront property on the South Coast has been growing rapidly. Some new condominium-developments have recently been completed and are attracting prices over U.S. $900,000.00. The value of these residences will appreciate over the next few years as the few remaining beachfront sites on the South Coast are developed.

If you would like to learn more about some of these exciting Luxury developments in Barbados, you can visit my website on Barbados Luxury Condominiums.

Tips On Selling Your Investment Property

Lets face it, even if you own a great investment property with $75,000
in equity, that equity wont pay the billsits not in your bank accountbottom line, you cant eat equity. So to realize your profit, you need to sell the real estate.

The following tips could help sell your investment property quickly. 1) Keep the price fair. Sure, you want to make the most it. But unless youre in a rapidly appreciating market, your business is better off if you offer a competitive price. Its always better to make a fast nickel, than a slow dime. 2) Virtual tours – More than two thirds of buyers research potential real estate purchases online now. 3) Landscaping – Creating curb appeal can fetch up to 15% more. Hint: many flower businesses and nurseries offer free advice to help turn a yard into a sensory delight for buyers. 4) Indoor decorations – Add some plants, which reduce air-conditioning costs by up to 25%. Plants also look great and keep the home beautiful, created a caring, lived in feeling. 5) In-ground sprinkler systems – (for upper and middle class neighborhoods only). Again, you’re investing in real estate. While sprinklers are pricey, they help encourage a sale in mid to high end homes, and can
boost your profit considerably, bringing you closer to making money from home. 6) Create more space – By painting walls a pale color, gives the illusion of additional space. 7) Check what’s underfoot – Make sure the floors are like new. You can buy used carpet from model homes but has not been worn. Hint: A rug with horizontal stripes can make a narrow hallway feel
wider. 8) Paint – Youre investing in real estate. Youre investing in yourself. Its the best way to make money from home. So add the odd warm shades such as yellow, red, and orange to the real estate to throw off a cozy feeling. Hint: the aroma of fresh paint gives off a new home feeling. 9) Clean storage spaces thoroughly – Clutters bad. It’s just good business sense. 10) Staging – Create a homely atmosphere by renting furniture and/or hire a decorating professional to do it for you. Staged houses sell more quickly and for a higher price

3 BONUS Tips: Follow the 3-D’s in your real estate business when selling a property: 1. declutter; 2. Depersonalize – remove personal items so buyers can picture themselves in the real estate; 3. Deep clean using a professional cleaning service.

By doing even half of these tips, your chances of selling your investment real estate is far greater and quite possibly, will be more profitable.

by Mary Wozny

Things to Consider in Building a Home

Building your home can be a very satisfying experience. You finally get the chance to own something that is made exactly the way you want it. The design, style, color, and functionality of your home usually represent your own personality and lifestyle. That is why it is important to be careful in planning and building your home.

Since building a home is a big financial decision to make, you must make sure that you plan your budget carefully and effectively. The materials, equipment, work force and other expenses may be costly, so you must be ready in case the cost exceeds your budget. In a situation like this, getting a house loan or mortgage in order for you to start building your house is helpful. Knowing the approximate cost can help you meet and modify your building plans according to your budget.

Aside from budget, you must also consider the place where you want to build your home. Whether you want it in a suburban development, an urban community, a beach front or anywhere else, you must choose a place where it best suits your lifestyle. You also need to know other important factors such as soil condition, drainage, zoning, and building codes. This is to ensure that you get the house that you want for your family in a safe, secured, and convenient place.

To know if the place and your budget suit well, home builders Jacksonville FL has can help you look into these factors. They are composed of a team of experts dedicated in building houses for those interested in and have high regards to owning or investing a house at a much affordable cost.

The home builders Jacksonville FL has are all licensed architects and interior designers. With their help, your home is assured to be of high quality. This can best suit your preference, lifestyle, and your entire family’s convenience.

These home builders provide home improvement Jacksonville residents can rely on. These experts provide the highest quality of service. They make sure that they exceed, if not meet your expectation. Your satisfaction is the goal and priority of the services they provide. Through them, building your dream home can turn into reality.

Avoiding Large Hidden Costs Building A Home

Building a home can be one of the most exciting, yet costly projects that you ever do. You can finally build your dream home, but if you are not careful, you might get slammed with various large hidden costs which will create even more devastating effects. The last thing you want is to start building this dream home only to be stuck with a half built home because you did not have the hidden costs in mind. When you plan out your home you should always be rounding up and expect to pay at least a third of the total cost more.

Building your own home can be a great financial investment but you have to consider all of the factors before you make this commitment. Some of the extra costs that you can encounter include legal fees, materials and even extra labour. Below you will find some of the common hidden charges that are associated with building a home:

Many people borrow money in order to build their dream home, but these funds have costly finance fees that are attached to them. Some of the more common fees which you will be paying are lender’s survey and valuation fees which can be up to $1000. You will also have to pay for inspections in order for mortgage payments to be released which can be almost $100 per visit.

Don’t forget about your broker. The person who arranges your mortgage will also benefit from you as you must pay for their services.

Arrangement fees are also common if you are using a fixed rate. Arrangement fees are also very common when you want the stage payments in advance. The only upside to the arrangement fee which can be around $1200 or less, is the fact that you will not have to pay for the interim inspection fees.

Another large fee that you should not forget about is your surveyor’s and engineer’s fee. Before work can be done, the plot of land must be inspected by a site surveyor which will cost between $600 and $1000. Archaeological surveys will also cost you around $5000. If there is a problem with the land, expect delays and costs to come with these delays.

Legal fees can be quite costly, at least $2000 for buying a plot and selling your home. When you purchase the property you will have to pay stamp duty and then register it which will have additional fees.

Building your home can be a dream come true but if you do not take into consideration the additional costs, it could soon turn into a nightmare. Other cost considerations are architecture fees, scaffolding and plant hiring fees, delivery charges and costs associated with connecting sewage lines.

Constructing A Home Wine Cellar

If you have a growing assortment of wine, it may be time to think about constructing a wine cellar. Some time ago the custom wine cellar was scarce; today more and more wine lovers are learning about wine cellar construction or contracting the work out to those who know how to do the job precisely.

Wine rooms are more than a dark, cool place to hold an assortment of wine bottles. Todays custom wine cellar is a controlled environment where humidity and temperature are regulated to allow wine to properly age without harm to corks, labels or the wine itself.

There are two types of wine cellars. One is a room that has been mainly made to stock wine in the right environment and the other is a stand-alone unit that mirrors those conditions. A stand-alone wine cellar is not as effective as a custom-built version, but some people like the aesthetics of a small cooled refrigerator over a custom wine cellar. Those who do choose a custom cellar have three simple considerations for proper creation.

Temperature Control and Venting

A wine cellar room is used to hold and age the wine in the bottle rather than preserving it at a serving temperature. (A stand-alone wine refrigerator is best for transporting wine out of the cellar to maintain at serving temperatures.) Aging wine is a balance of time, temperature and the chemical reactions that happen as a result of the two.

Wine should be aged in conditions ranging between 55 and 65 percent humidity and a steady 55 degrees Fahrenheit, give or take one degree. Wine held at higher temperatures will mature quicker and wine experiences chemical reactions at higher temperatures that destroy the notes of the wine over time.

In some locations of the country, property holders with basements often find that the environment is right for basic wine storage, but seasonal temperature and humidity variations should be avoided. The perfect storage solution is a custom-built or DIY-construction wine cellar with climate and humidity control using a wine cooling unit to keep the temperature at a steady 55 degrees.

These units are available in a range of sizes and the dimensions of your wine cellar room will control what size you need to purchase. By no means buy a wine cellar cooling system too small for your room; you most likely will never get a steady, optimal storage temperature and the cooling unit will become overtaxed trying to keep up.

Wine cooling units require proper venting, and your wine cellar construction plan demands either a hole in the wall to allow venting outdoors or enough vent space to move warm air out of the room. Check the specs of your wine cooling system; most require a venting space at least two times as large as the wine cellar space itself.

Electrical power is also an issue. Custom wine cellar builders suggest a dedicated power source to run a wine cooling system. Those who choose to use a common power source frequently find the system overloading with blown fuses and other electrical problems.

Insulation and Vapor Barriers

The wine cooling unit is only part of your climate control plan for a custom wine cellar; you also need a vapor barrier made of plastic sheeting used on the hot side of the wall. Some people wrap the interior of the wine cellar previous to inserting the insulation, keeping the plastic loose so that insulation can be positioned between the studs in the wall. Wrap the ceiling and the walls, or your vapor barrier will be imperfect. After the barrier is installed, the insulation comes next.

Good wine cellar building requires the right kind of insulation for your walls and ceiling. For instance, if you are building a 2×6 wall, R19 insulation is recommended, but if you have a smaller wall of 2×4, R13 may be your best bet. (The R designation represents the heat resistance of the insulation.) Ceilings need R30. Custom wine cellar builders should never put in the insulation loose without filling the material into the sections, as this decreases the insulations effectiveness.

The next step is to install a type of drywall called green board, which is moisture-resistant, making it a bit more expensive than regular drywall. Install an exterior-grade door to the wine cellar and your climate control plan is complete.

Lighting and UV Exposure Control

Wine is damaged by UV exposure, which is why the bottles are normally constructed out of dark glass. Avoid installing fluorescent bulbs in the wine cellar room, as they give off UV radiation. Control the intensity by using recessed lighting on a dimmer and avoid shining light directly on your wine bottles for long periods of time. Some wine racks are created with compartments that hide bottles from the light which can help lessen the exposure, but if your bottles are kept in plain view, try to avoid the spotlight effect on your bottles.

Other Concerns

Almost any kind of flooring can be used in your custom wine cellar. If your home is large enough for a tasting room to complement your cellar, you may wish to give them both a matching look, but never use carpet and rugs in the cellar area. They simply cant hold up to the required humidity levels without surrendering to mold. Mold growth will ruin your wine, as can any strong odor from chemicals or cheeses. A wine cellar should be used only to hold wine; store food in a separate space.

Constantly watch the temperature and humidity in your wine cellar with an external sensor or gauge. Never assume that the wine cooling system will always function accurately. A quick glimpse at the external gauge can offer you early notice if the wine cooling unit is having difficulties, or if the unit is showing a faulty readout because of a bad sensor or other technical troubles.

Building a custom wine cellar may require some attention to the design demands of proper wine cellar storage, however once correctly built, you may realize that your collection grows quickly; its simple to invest more money in wine when you realize it will be stored securely for maximum pleasure.