Select pieces of real estate can have tremendous commercial potential. This real estate can line your pockets with profit and might even make you rich! However, not everyone will succeed at it, and the stakes are quite high.
Make sure that you invest some time researching local income levels and other factors, such as unemployment rates or local employers plans for expanding or contracting their businesses before you invest a large amount of funds into real estate. Homes that are located near schools, hospitals and other major employers are assigned a higher resale value.
Pest Control
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.
Commercial real estate involves more complex and longer transactions than buying a home. Know that the duration and intensity is essential to getting a higher return on the investment you made.
Make sure that the commercial real estate you want to purchase is equipped with connections to all of the utilities you’ll need. You will need access to electricity, water, sewer and maybe gas in addition to any unique need that your business has.
In the earliest stages of negotiating your lease, it is in your best interest to ensure that only a few conditions are capable of constituting acceptable means of default. That will cut down on the likelihood that the tenant defaults on a lease. You want to avoid any circumstances that could lead to this occurrence.
Prior to listing your commercial property for sale, have it checked out by an inspector with at least five years of experience. This way you can make sure it is prepared in advance of a sale, and if any problems arise during the inspection you can take care of it on the front end.
Make sure that the advertisements for your commercial real estate reach both local and non-local audiences. There are a lot of people who make the big mistake who think that only local people want to purchase their property. There are many private investors who would purchase property outside of their local area if the price is right.
Do a walk-through of each property on your short list. When looking at a property that you are thinking of purchasing, it’s a good idea to have a licensed contractor accompany you. Once that is done, you can submit your proposal and begin negotiations. Take your time and really explore your offers before you decide to buy or pass.
When you are composing a letter of intent, you should emphasize simplicity by negotiating on the bigger issues first, then addressing the minor issues later in the negotiations. The initial negotiations will be less tense and the smaller issues will seem less important later.
Using a checklist is useful when you have multiple properties that you are considering. Don’t go any further than 1st round proposal responses, unless you let the owners of the property know. Don’t fear telling the owners that you might be interested in other properties. This may provide you with more room for negotiation.
You may need to make some changes to the commercial space you just rented before moving in. The changes could be rather cosmetic. Sometimes it is as simple as painting a wall or moving some furniture. Many times, changes include reconfiguring the floor plan by moving walls. Plan on negotiations with the owner of the property to see if all, or part, of the costs can be covered by said owner.
When you begin to invest, it is wise to only have one investment in mind at a time. Pick one type of property, at first, and pay close attention to it. If you try to divide your attention very much, you will not excel in any area.
You could earn a lot of money with commercial real estate. A serious commitment of funds is usually required, as are your time and other resources to insure the success of your investment. In order to do this, make sure to follow the tips and tricks in this article that can help you succeed.