When you are the owner of some commercial property, it is very fulfilling, but it takes hard work. This probably has you thinking about the best place to start so you can properly manage the property. It's daunting to figure all this out, but the following paragraph contains some helpful hints you can use to ease the process of hunting down and buying a piece of commercial real estate.
Focus on a single commercial property at one time. Pick a specific niche, such as retail or residential, and look only for that. Each type deserves and requires undivided attention. You're better off being an expert at one than you are being average at many.
Advertise the commercial property to both locals and non-locals. A lot of people do not think that people from out of town will want to buy their commercial real estate. In fact, the interest level can expand far beyond the local scene as private investors expand their interest. These investors are searching for affordable property and may be interested in yours.
There are many factors to consider as you view available properties. For example, you should take note of statistics regarding local employers, workforce availability and the accessibility of skilled labor. Commercial property near hospitals or schools have higher property values; these properties are also easier to sell.
It is essential that you become aware of any environmental issues associated with properties you are considering. You don't want to start off with any problems that could've been prevented. As owner of the property, you must be willing and able to address these concerns, regardless of whether you were directly responsible for them.
Make sure you have the right access that has utilities on commercial properties. Your business has its own utility needs, but you are most likely going to need water, sewer, electric and possibly even gas.
Before choosing a real estate broker, you need to know how they negotiate. Inquire into their specific credentials and training; do not be afraid to ask for references. Also make sure they're ethical when doing business and can get you the best 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.
Every property will have a lifespan. If you ignore this, it could cause you to spend more than you had planned keeping up the property. For example, the property may require an entirely new electrical system, a new roof or a new central heating unit. Any building has phases like this, although some do so more frequently than others. It is important to formulate a long-term approach for managing these types of repairs.
Pest control is something you should look into when renting or leasing a property. This is especially important if the region is known for certain types of pest infestations. If this is the case, ask specifically what the landlord will do with regard to pest control.
If the lease you are signing is for commercial real estate, be careful when presented with a form that says standard lease. Larger companies can sometimes slip extra requirements into lease documents, and this can make them longer and more complicated. Always read any commercial lease before you sign it. Be aware of what you're agreeing to and don't sign the lease if anything makes you uncomfortable. Taking the extra time to read through your lease now helps you avoid problems later.
Before hiring any real estate broker, read all of his disclosures. Be aware of the possibility of dual agency. In this case, the real estate agency represents both sides of the transaction. This means the broker represents you and the landlord during the transaction. Real estate agents must disclose any dual agency. Both the tenant and the landlord must agree to accept dual agency.
Don't try to buy a commercial building until you have financing in place to back up your offer. Get recommendations from friends and fellow investors before choosing a local lender. Do some research, and select the one that can help you reach your goals prior to purchasing the property. If you take some time to organize your paperwork, then it will be much easier to get that loan approved.
After reading the article above, you should have a better grasp of the basics of investing in commercial real estate. Keep learning more and adopt a flexible attitude. This way, you will be able to see opportunities that other people don't.
Focus on a single commercial property at one time. Pick a specific niche, such as retail or residential, and look only for that. Each type deserves and requires undivided attention. You're better off being an expert at one than you are being average at many.
Advertise the commercial property to both locals and non-locals. A lot of people do not think that people from out of town will want to buy their commercial real estate. In fact, the interest level can expand far beyond the local scene as private investors expand their interest. These investors are searching for affordable property and may be interested in yours.
There are many factors to consider as you view available properties. For example, you should take note of statistics regarding local employers, workforce availability and the accessibility of skilled labor. Commercial property near hospitals or schools have higher property values; these properties are also easier to sell.
It is essential that you become aware of any environmental issues associated with properties you are considering. You don't want to start off with any problems that could've been prevented. As owner of the property, you must be willing and able to address these concerns, regardless of whether you were directly responsible for them.
Make sure you have the right access that has utilities on commercial properties. Your business has its own utility needs, but you are most likely going to need water, sewer, electric and possibly even gas.
Before choosing a real estate broker, you need to know how they negotiate. Inquire into their specific credentials and training; do not be afraid to ask for references. Also make sure they're ethical when doing business and can get you the best 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.
Every property will have a lifespan. If you ignore this, it could cause you to spend more than you had planned keeping up the property. For example, the property may require an entirely new electrical system, a new roof or a new central heating unit. Any building has phases like this, although some do so more frequently than others. It is important to formulate a long-term approach for managing these types of repairs.
Pest control is something you should look into when renting or leasing a property. This is especially important if the region is known for certain types of pest infestations. If this is the case, ask specifically what the landlord will do with regard to pest control.
If the lease you are signing is for commercial real estate, be careful when presented with a form that says standard lease. Larger companies can sometimes slip extra requirements into lease documents, and this can make them longer and more complicated. Always read any commercial lease before you sign it. Be aware of what you're agreeing to and don't sign the lease if anything makes you uncomfortable. Taking the extra time to read through your lease now helps you avoid problems later.
Before hiring any real estate broker, read all of his disclosures. Be aware of the possibility of dual agency. In this case, the real estate agency represents both sides of the transaction. This means the broker represents you and the landlord during the transaction. Real estate agents must disclose any dual agency. Both the tenant and the landlord must agree to accept dual agency.
Don't try to buy a commercial building until you have financing in place to back up your offer. Get recommendations from friends and fellow investors before choosing a local lender. Do some research, and select the one that can help you reach your goals prior to purchasing the property. If you take some time to organize your paperwork, then it will be much easier to get that loan approved.
After reading the article above, you should have a better grasp of the basics of investing in commercial real estate. Keep learning more and adopt a flexible attitude. This way, you will be able to see opportunities that other people don't.
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