Dealing with the commercial real estate business can be overwhelming and stressful for beginners as well as those who have already been through it before. This article will give you some great advice to make your commercial property dealings proceed more smoothly.
Use a digital camera to take pictures. Make sure the picture shows the defects (such as spots on the carpet, holes on the wall or discoloration on the sink or bathtub).
Figure pest control into your rented or leased commercial real estate property costs. This is especially important when an area is known to have pest and rodent problems. Prior to signing a lease, ask your agent what the current pest control policies are.
Buying commercial property takes more time, and the process is far more labyrinthine, than buying a house. Keep in mind, though, that the complexity is required to ensure that your real estate investment gives you a high return.
Nit Apartment Complex
When making decisions between one commercial property and another, think big. Obtaining adequate financing is a major undertaking, whether you opt for a ten-unit apartment complex or a twenty-unit apartment complex. Just think about it as the more you buy the lower you are paying per unit, so you save more in the end.
One major part of commercial real estate deals is inspections. When property you are involved in is being inspected, take steps to verify the legitimacy of every inspector. Pest removal companies should be closely checked because many non-professionals do this work. A non-accredited inspector could be a source of problems.
When drawing up a letter of intent, try to solicit agreement on big issues first and leave smaller issues for later rounds of negotiations. By focusing on the big stuff first, you will have more pleasant negotiations, and you will be better able to manage small matters in the end.
If you are checking out more than one property, draw up a checklist to compare the features of the different properties. Accept the proposal responses from the first round, but be sure to inform the property owners directly if you decide to go further in your inquiries. 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. You may even get a more favorable deal!
Any new space you acquire might need some improvements prior to you occupying it. These may be simply applying new paint or a change in furnishings. In many cases, it may be necessary to move walls or rearrange a floor plan. When negotiating, you should discuss who will pay for the improvements you’ll have to make, and should see if the current owner will cover some of your costs.
It is essential to develop a list of emergency maintenance service providers. Talk to the building’s landlord about the person who currently handles emergency repairs. Keep a list of phone numbers close to you, and make sure you select companies that answer quickly. Work with your landlord to create a contingency plan in the event that an unforeseen disaster occurs; this will allow you to avoid customer service or public relations nightmares.
There are real estate brokers who deal exclusively with commercial investments. Some agents will represent only the tenant while a full service broker will represent both parties. If you are a tenant, you may be much better off by using a broker who only works with tenants as they have a lot more experience with successful tenant representation.
As a new investor you should focus on one area of investment only. Decide on one property type and educate yourself about the best way to handle it. It is preferred to excel in one type instead of being mediocre in many types.
Make sure you are dealing with a company that cares about their customers before you make a purchase. If you don’t do this, you could end up with a bad deal and lose more money as time goes on.
Consult your tax adviser before buying your first commercial property. Such an expert can inform you of what a building will cost you, and the tax impact of your income from a property. You can work with him to narrow down areas where you’ll best invest your money.
Searching for commercial properties can be stressful for experts developers and beginners alike. The tips you just read can help lower your stress while searching for property. Hopefully, following them will allow you to enjoy the search.