If you’re not sure where to start the search for a commercial property, finding one that fits the needs of your business may be very difficult. Be sure to carefully review the information provided here.
Record problems by taking digital pictures of them. Make certain your photos highlight specific defects such as carpet spots, wall holes and bathroom discolorations.
When you lease a commercial site it is very important to that pest control is kept up-to-date. In some areas, in particular in areas with known populations of pests, this is a very important concern.
Real Estate
The Internet contains a lot of information for those interested in investing in real estate, whether they be experienced investors or novices. You can never learn too much, so you should study real estate topics regularly.
Pay attention to the location of a property. What type of neighborhood is the property in? You will also want to calculate growth expectations by comparing similar neighborhoods. This is important, as you don’t want to be in a current growth area only to have the neighborhood stagnate in a few years.
Residential property transactions are much less intricate and protracted than are commercial transactions. The added time and effort are crucial, however, to getting the return that you want on your investment.
When choosing brokers with whom to work, find out the amount of experience they have dealing with commercial properties. Look for brokers who specialize in commercial real estate. Allow the broker to acknowledge your wish for an exclusive agreement between the two of you.
If your property deal requires inspections (as it should), look at the inspector’s credentials. This is especially true of people who work with insect or pest removal, as there are many non-accredited people working in these fields. This can avoid future problems after the sale.
With the commercial property, you need to make sure there is easy access to the utilities. Your particular business might need additional services, such as cable, but at the minimum there should probably be sewer, water, phone, electric and gas.
Check into having an inspector look through your property before you put that property back on the market. If they flag issues that need to be fixed, repair them before you list the property for sale.
Emergency Repairs
You should always know who takes care of emergency repairs. Talk to the building’s landlord about the person who currently handles emergency repairs. Be sure to have emergency numbers on hand, and remember to check about a quoted response time for maintenance emergencies. Use the information provided by your landlord to help you prepare a plan for when normal business is disrupted by certain events.
A borrower must be the one who orders an appraisal in a commercial real estate loan. Your bank will refuse the appraisal if you try to submit it. Order it yourself to ensure everything goes as planned.
Make sure you are dealing with a company that cares about their customers before you make a purchase. If you do not take the time to be sure they are a good company, you run the risk of entering into a bad deal.
Tax Adviser
Prior to making any purchase, consult with your tax adviser. Your tax adviser can inform you of all of the potential costs related to your investment, and also tell you what percentage of your profits will have to be paid in taxes. Work with your adviser to find an area where taxes will not be as high.
You need to do this so that all terms match the pro forma, and also the rent roll. If you fail to closely examine these terms, you may not notice that there are terms that were not thought about with regards to the rent roll, altering the pro forma.
You need to acknowledge that property has a limited lifespan. A property with an astronomical upkeep fee may ultimately be an unwise purchase. Consider the fact that a property could need a brand new, expensive roof fitted, or a modern electrical system installed. All buildings degrade over time, but some building types are more prone to it than others. Make sure all these repairs are included in a long-term plan for the property.
The advice outlined above lays out a number of useful strategies applicable to both buying and selling commercial real estate. Use the advice you learned here to stay as informed as possible.