While purchasing a commercial property is extremely exciting, running and maintaining that property will require a great deal of effort. This can leave you wondering where to even begin to get things taken care of. Read this article to learn how to find a good deal and maintain your commercial property.
Regardless of whether or not you are the seller or the buyer, negotiate! Fight for the best price possible and make sure that all parties involved listen to you.
Take plenty of pictures of the building. Make certain that the pictures show irregularities, such as holes or bad paint on walls, carpet stains, and bathtub or sink discoloration.
If you are new to investing in real estate, spend some time surfing online resources that house information that seasoned investors use. No one can ever honestly claim that they know too much.
In the beginning, a great deal of time might be required to spend on your investment. First you will need to find a property that you think is worth purchasing, and you may have to remodel or repair it. Don’t throw in the towel because the process is taking too long to complete. Later, you’ll be rewarded for the time and money you have invested.
When you are picking between commercial properties, think big! Whether it be a twenty or ten unit apartment complex, you want to get adequate financing to back you up. Generally, it’s like buying in bulk; the more you buy, the less each unit is.
If you are renting out your property, be sure that they are always occupied. If no one is paying you rent, you’ll be the one footing the bills. If you have multiple vacant properties, figure out why this is, so you can understand why your tenants are leaving.
Check a commercial property for access to electricity and other utilities; make sure there is good access. Your business may have unique utility needs, but at the very least, you probably require hookups for electric, sewer, water and most likely, gas.
You need to think over the community any commercial property is in before you commit to it. In general, it’s better to locate a business in a richer area because rich customers obviously have more discretionary income. Bargain-oriented goods and services will find a more receptive market in lower- to middle-class areas.
Have property professionally inspected before you decide to put it up for sale. You should consult with them and see if anything needs to be repaired; if it does go ahead and fix that as soon as possible.
Keep the smaller issuer for later on in your negotiations and the larger ones first, when you write a letter of intent. This will help to reduce some of the tension in initial negotiations and will also make gaining agreement on some of the smaller issues much easier.
If there is more then one property you are considering, acquire the house survey checklist for each one during your site tour. Accept responses to the initial proposals, but don’t go further than that unless you inform the property owners. You should not have any hangups about letting the owners know that you are still deciding on other properties. It can also get you a great deal on the property you’re touring!
You need to know the details of emergency maintenance procedures. Find out from your landlord who to contact for emergency repairs, such as plumbing accidents. Always keep this important contact information at hand, including average turnaround times. 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.
Clearly, owning and purchasing commercial property takes work, effort and research so that your experience is as favorable as possible. Note that you cannot take a break from it, you have to always keep at it. By applying the advice of the previous paragraphs, you can start easily and safely down the path to commercial property ownership.