Industrial property and other commercial properties are going up on the market all the time, but this type of property does not get preferential listings like regular homes. The tips and advice provided in this article will help you learn how to navigate the market and find these listings.
Consider the economy in the area you’d like to buy real estate in before investing there. Commercial property near hospitals or schools have higher property values; these properties are also easier to sell.
Location is just as important with commercial real estate as it is with residential properties. Consider how the neighborhood will affect business. Also, consider local growth projections. Since you will likely still own the property in ten years, you want it to be located in an area that is likewise still desirable in ten years.
You might have to spend a lot of time on your investment at first. First you have to hunt down a good deal, and then, after your purchase, you may be required to complete some repair work or remodeling. Don’t throw in the towel due to the massive hours needed. Later, you’ll be rewarded for the time and money you have invested.
If you have to choose between two different properties, consider the benefits of opting for the larger amount of space. Acquiring enough money to finance a 10 or 20 unit apartment complex can be huge undertaking. The concept here is the same as any other situation where you are purchasing multiple things. The more you purchase, the less you will pay for each unit.
Every prospective real estate purchase should include thorough onsite inspections; it is equally important to verify the inspectors’ credentials. Those who work in pest removal should be inspected closely, as they are often not accredited. This can keep you from having bigger headaches after the sale.
If you desire commercial property for rental purposes, locate buildings that are simply yet solidly constructed. You will be able to attract tenants for these properties more quickly due to the fact that they will know the building is well maintained. This type of building also has the advantage of requiring less maintenance, an attractive feature for tenants and owners alike.
Keep your rental commercial properties occupied. You’re the one who has to pay to keep the building maintained, and if no one’s renting them, you’re wasting your money. If you notice that you have several vacant properties, try to find out why, and look at ways of enticing tenants back in.
Have a professional do an inspection of your commercial property prior to you listing it as available on the market. Repair any problems that the inspector finds immediately.
You should advertise your commercial property as being for sale to people locally and those who are not local. Don’t be mistaken by the thought that locals will be the only people interested in your sale. Many private investors are interested in cheap or affordable properties in other areas of the country or world.
Start drafting letters of intent by focusing on the more central issues. Once you have agreement on those, broaden the negotiations to include any smaller issues that remain. The negotiations will become less tense and you will be able to better get an agreement on the more small problems.
Property Owners
If you are checking out more than one property, draw up a checklist to compare the features of the different properties. Accept responses to the initial proposals, but don’t go further than that unless you inform the property owners. Don’t hesitate to tell a property owner that you’re considering other properties as well. Most property owners won’t be upset or angry; they expect you to be looking at more than one property. It can also get you a great deal on the property you’re touring!
Have a list of goals on hand before you start searching for commercial real estate properties. List the qualities that concern you most in a property (e.g. restroom facilities, conference facilities, number of units available, square footage, etc.)
You should always know who takes care of emergency repairs. Talk to the landlord about who does emergency repairs for your building or office. Always keep this important contact information at hand, including average turnaround times. Take advantage of this information to devise a contingency plan in order to prevent and respond to customer complaints resulting from maintenance issues.
A variety of kinds of commercial property real estate brokers exist. Some agents represent tenants only, while brokers work alongside tenants and landlords alike. If you hire a broker that only deals with tenants you may be better off, they are more experienced.
If you think finding the perfect property is the main hurdle to surmount, you’re wrong. A little knowledge can go a long way.