There are a number of motivations that can drive you toward commercial real estate investment. However, all of those motivations should be your choice based on your existing knowledge. The more you learn, the more you will financially benefit from commercial real estate. The advice and tips shown below will be a good foundation for you as you begin to learn more about commercial real estate, or give you more information to build on your current level of understanding.
You should negotiate if you are the seller or the buyer. Fight for the best price possible and make sure that all parties involved listen to you.
Whether you want to rent or lease, you will have to deal with pest control. In some areas, in particular in areas with known populations of pests, this is a very important concern.
A good starting point for people looking to purchase real estate is to go online and scour the treasure trove of beneficial information that can help new investors, as well as seasoned professionals. There is no such thing as having too much knowledge, so it is always a good idea to learn as much as you can.
Nit Apartment Complex
If you are trying to choose between two good commercial properties, think big. Obtaining adequate financing is a major undertaking, whether you opt for a ten-unit apartment complex or a twenty-unit apartment complex. 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. You should particularly watch for people involved in insect or pest control. There are a large number of individuals who work in these areas that do not hold the proper credentials. This will avoid bigger problems in the post-sale.
You also want to take into consideration the neighborhood that your real estate is in when you purchase commercially. Your business might do better in affluent communities, since your prospective foot traffic has more money. If the products and services you offer are more middle class or less affluent, then purchase in an area where there are more buyers suited to your business.
Check into having an inspector look through your property before you put that property back on the market. 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.
Write an easy-to-understand letter of intent, focusing on the biggest issues. You can worry about the little things later on. You can make all your negotiations less tense, so you can agree on any of the smaller issues first.
Property Owners
Using a checklist is useful when you have multiple properties that you are considering. Make sure to advise the property owners when you want to take the next step past the first proposal responses. Letting the property owners know that you are looking at other properties can help, too. You may even get a more favorable deal!
Be aware that not all commercial brokers are alike. Choose the real estate broker who will best help you meet your needs. Real estate agents will work with landlords and tenants, but there are also some that only work with tenants. You reap better benefits if you hire an experienced tenant broker because the broker will ensure that you receive the best deal possible.
Scrutinize any disclosures made by a real estate agent whom you intend to hire. Remember that a dual agency could occur. In this case, the agent is two-faced: she is representing both parties to the transaction. In the case of a rental situation, the agency represents the landlord and the tenant. You and the other party should both agree if dual agency is to be okay.
As mentioned earlier in this article, you could have a variety of motivations driving you towards commercial real estate investment, but all motivations require learning more about this field to find success. Apply the tips from the article above to your commercial real estate needs and you are sure to be on your way to maximizing your profits.