Even though there are many commercial properties listed every day, you will not see them in the preferential listings, as you would homes. You have to know where to find these properties, and this article will give you the tools you need to do just that.
Look at the neighborhood you’re thinking about investing into, you want to check things like unemployments rates, income levels, and different rates of expansion so that you have an idea of where the neighborhood stands, and what potential it has in the future. For example, buying a home near a large employment center, such as a university or hospital, will lead to a higher value and faster sale down the road.
Use a digital camera to take pictures. Take pictures of the damages, for instance spots and stains, holes or even discoloration on the bathtub.
Pest Control
Pest control is a very important issue that you need to be aware of when renting or leasing. If you are renting in an area that is known to have a lot of rodents, pests, or bugs, then ask your agent what the policies on pest control are.
When you are picking between commercial properties, think big! Regardless of which way you choose, coming up with the capital is a common factor, so often times it will be be worth digging a little bit deeper to get the larger property in order to maximize your long-term profits. Generally, it’s like buying in bulk; the more you buy, the less each unit is.
Find out more about net operating income. Success is about staying in the green.
List your real estate at a realistic price. Different variables can have an impact of the value of a lot.
When you are shopping for a commercial property, be sure to confirm that you will have access to utilities. Your business may have unique utility needs, but at the very least, you probably require hookups for electric, sewer, water and most likely, gas.
Advertising your property to parties locally and abroad is important to ensure you get the best price possible. Do not assume that only local investors will be interested. Many investors will consider purchasing a property outside their own region if the price is right.
Create or purchase an inspection checklist before starting to evaluate properties. Tour each potential property, and check how well it meets the requirements on the list. Do not proceed past initial proposal responses, unless you inform the property owners. You should feel free to let owners know that this isn’t the only property you’re looking at. This could help you score a better deal.
Commercial Property
You will need to know what you are looking for in a commercial property prior to beginning your search. Identify which features in a commercial property are high value to you, and make a list. This can include the number of floors, units, square feet, the building layout, and anything else that is important to you.
One of the most important things you should be aware of is emergency maintenance. Get a list of emergency maintenance contacts from your landlord. You should not only commit emergency numbers to memory and post them in a conspicuous location, but you should also know how long it takes various workers to get to your office in an emergency. Make an emergency plan once you have this information. If a flood, fire or break-in interrupts your normal business day, you need to have a plan in place so that you can re-open as soon as possible.
Be aware of the potential tax benefits of investing in commercial property. Investors get both depreciation benefits and interest deductions. Yet sometimes investors receive what is called “phantom income”, and this is income which is taxed but isn’t received as cash. Before investing, become more familiar with this sort of income.
Finding the proper commercial property is just half the battle. Every bit of information can make a difference.