Are you ready to buy your first piece of commercial real estate? You probably have a lot of inquiries on where to start and what to do, but do not worry, this article will help you. The following tips will help make you more confident in your commercial property searches.
Consider the economy in the area you’d like to buy real estate in before investing there. Property that is located near a large business, a college, or a hospital has better resale value and will often sell easier.
Commercial real estate involves more complex and longer transactions than buying a home. You should understand that although this is a huge undertaking, when all is said and done you will receive a big return on the investment.
At first, you may be required to spend a significant amount of time on a commercial investment. It can take a little time to find a property worth purchasing, and you also may have to make necessary repairs. Do not cut corners on this process, just because it might take up a lot of time. Your patience will eventually be rewarded through profits.
When having your real estate inspected (as you should), always ask for the qualifications of the inspectors. This guideline is especially important when working with people who deal in pest management; these specific fields are often populated by practitioners who lack proper credentials. Making sure all your inspectors are certified will prevent problems from arising after the sale.
Keep your commercial property occupied to pay the bills between tenants. 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 have multiple properties available, you need to figure out what the reason is behind this, and address anything that is causing tenants to look elsewhere.
Larger Issues
When you are writing up the letters of intent, keep it simple by going for agreement on the larger issues first and let the smaller issues wait for a later time in the negotiations. The negotiations will go much better and be less stressful if you keep the small stuff out of the way and can focus on the larger issues first.
When you are comparing different properties, get tour site checklists. Whilst you can take the first proposal responses, make sure that you don’t go any further without first informing the property owners of your plans. You should not have any hangups about letting the owners know that you are still deciding on other properties. This could help you score a better deal.
Make sure you know exactly what requirements you need to satisfy before you begin your search for commercial real estate. 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 how to get in touch with emergency maintenance. Speak with your landlord, and ask who is in charge of emergency repair work at your home or office. Keep their numbers updated, and know how long it takes them to arrive on average. Your landlord should be able to provide you a list of emergency contacts so that you can map out a safe and well organized emergency plan, in case an emergency happens during normal business hours.
Real Estate Agency
Carefully peruse the disclosure statements issued by the real estate agency you intend to hire. Look for any disclosures regarding dual agency. In this sort of situation, the agency acts as both parts of the transaction. The real estate agency will represent both the seller and the buyer. An agent should always disclose dual agency, and it must be acceptable to both parties.
Now that you have read this article, you should feel more informed about the world of commercial real estate. Even if you thought you had a grasp on the basics before, the pointers in this article should make it that much easier to go out with confidence. These tips will, hopefully, give you some hints on getting started, when you are dealing with commercial real estate ventures.