If you are new to the whole commercial real estate scene, then this collection of tips can provide you with a valuable introduction to several common concepts. This article is exactly the kind of collection of commercial real estate tips that can help someone who is willing to learn. Following the advice within can quickly turn a novice into a professional.
Use detailed photos to create this documentation. Include all the defects in the photo, such as carpet stains, or holes in the walls.
Think larger when you’re thinking about two commercial properties that are viable. Acquiring enough money to finance a 10 or 20 unit apartment complex can be huge undertaking. Generally, this is the same situation as if you were buying something in bulk, the more you buy the cheaper the price of each unit.
When interviewing potential brokers, ask them to tell you about their experience level with the type of commercial investments you are interested in. Look for someone who knows the area you are interested in. Once you’ve determined the broker is right for your needs, make sure any agreement into which you enter is an exclusive one.
You should be certain that your asking price is a fair offer for your piece of real estate. There are a lot of factors that determine the value of the lot.
Make sure the property you are interested in has access to utilities. Every business requires certain utilities, most commonly things like water, sewage and electricity.
Have your property inspected before you list it for sale. If the inspections turn up any problems, remediate them before listing the property for sale.
Advertise the commercial property to both locals and non-locals. Many sellers mistakenly presume that their property will appeal only to local buyers. Many private investors are willing and able to purchase properties outside their immediate community if the price is right.
If you are touring several properties, be sure to utilize a checklist to make things easier for you. Take this list with you as a reference when visiting other properties, and use it when speaking with the property owners. Don’t fear telling the owners that you might be interested in other properties. It can also get you a great deal on the property you’re touring!
Before you begin seeking commercial real estate property, be sure to identify your requirements. Write down everything you need in a commercial property, such as number of conference rooms, offices, restrooms and how much square footage.
Read the disclosures of the real estate agent you are planning to hire. Never neglect the fact that you may be dealing with a “dual agency.” 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. Dual agency is something that should always get disclosure, and both parties involved should be in agreement with it.
You have to purchase a real estate appraisal yourself before you can qualify for a commercial loan. The bank won’t let you make use of it later. Order it yourself to ensure everything goes as planned.
In the beginning phases of your career as an investor, limit yourself to working with a single type of investment. Pick out a single property type that you would enjoy starting with and only pay attention to it. It isn’t good to be just okay at many investments when you can be excellent at one.
Before you purchase any item at all, set up a meeting with a reputable tax adviser. You will find out how much this property will end up costing you and what percentage of your income will be taxed. You can work with him to narrow down areas where you’ll best invest your money.
Ask your broker to explain the methods he uses to negotiate deals before hiring him. You may want to ask them about their own experience and training. You’ll also want an agent that conducts themselves professionally and ethically, and who has expertise in closing beneficial deals. Ask to see the broker’s portfolio. He should be able to provide you examples of successful negotiations. Also ask the broker to give you an example of an unsuccessful negotiation and explain what he learned from the experience.
The above collection of tips should have given you enough information to feel confident about commercial real estate transactions. Remember to apply these tips and work on improving your skills linked to property hunting and negotiating.