Industrial and commercial property is continuously on the market, but don’t get the highlighted attention or preferential treatment that residential homes do.
Whether buying or selling, negotiate. Be certain your needs are met, your concerns are heard, and you champion a fair, honest price for the real estate.
Before purchasing any property, investigate the economics of the neighborhood such as unemployment rates, unemployment rates and the expansion or contraction of local employers. If you’re looking at a property that’s close to things like a university, including hospitals, universities, or large companies, you might be able to sell it faster and for more money.
This can avoid headaches after the sale.
Record problems by taking digital pictures of them. Make sure the picture shows the defects (such as spots on the carpet, holes on the wall or discoloration on the sink or bathtub).
Keep your commercial properties occupied. If you have multiple vacant properties, try to find out why, and fix any problems that might be occurring.
Have your commercial property inspected before you listing it as available on the market.
As with other property purchases, pay attention to the three Ls: location, location, and location. When investing in a property, consider what type of neighborhood it is located in. Compare the growth of the property’s neighborhood to similar neighborhoods around the country. You want to make sure that in 5 or 10 years down the road, the area is still a descent and growing area.
Advertise the commercial property both locals and non-locals. Many sellers mistakenly presume that their property is only interesting to local buyers. Many private investors are willing and able to purchase properties in other areas of the price is right.
Take a tour of any properties you are considering. Think about taking a contractor that’s a companion to help evaluate the property. Make a proposal early, and open the negotiating table. Before you decide whether you want to accept an offer or not, evaluate it once and then evaluate it again.
You need to think over the community any commercial property is in before you commit to it. If the property is located in a prosperous area, your business is more likely to succeed because your potential customer base is going to be wealthier. If the business you run caters to a lower-income demographic, buy in an area that fits your clientele best.
Emergency repairs should be a high priority on your need to know list. Keep the contact numbers handy, and know how long it takes them to arrive on average.
Real Estate
Have a professional do an inspection of your commercial property prior to you listing it as available on the market. Repair any problems that the inspector finds immediately.
Check all disclosures a potential real estate agent gives you wish to work with. Remember that dual agency could occur. This means the real estate agency will work as the landlord and the landlord at the same time. Dual agencies require full disclosure and both parties should agree to it.
When you’re a new investor, it is best to focus on one type of investment at a time. It is best at first to learn on one strategy than start out with many different types of commercial buildings.
Check the company’s reputation for customer service before you deal with them. If you don’t do your research and end up in bed with wolves, you will be the one to suffer.
If not, you will be the one to suffer.
You need to acknowledge that every property has a lifetime. The building may need major improvements like a roof replacement or updates to its systems. All buildings eventually need maintenance and remodeling. It is important to formulate a long-term approach for managing these expenses into your long term budget.
Make sure you factor in any problems regarding the environment. You don’t want to start off with any problems that could’ve been prevented. As a property owner, it is your responsibility to handle these issues, regardless of their origin.
Think bigger when you are investing in commercial real estate investments. If you want to get a building that has five units, remember that managing 50 units is just as easy as handling five. A five-unit building requires commercial financing just as the larger buildings do, but the larger one has lower per unit average prices and more rental income streams for you.
Always be on the lookout for sellers who are motivated to sell. You have to find them, especially any who are very eager to make money by selling below market value.
You can post to social networking sites, and you should also send out newsletters about your commercial properties. If you maintain a regular presence in these contacts’ lives, then they’ll think of you first the next time they are ready to make a deal.
However, each case has different issues, and determine what the best investment is for you.
Your first step is to find the best financing. Loan products and commercial lenders are very different from home loans. They are better in a borrower. Commercial loans have larger down payments, but you may avoid any personal blame if it’s a bad deal, and banks are more relaxed about allowing you to borrow some of your down payment money from a friend or partner.
Keep in mind that any new lease, strategies, or rent consideration are necessary for your investment’s future. Know exactly how much rent you plan to charge before you ever talk with a prospective tenant. In this way, you will be able to attain the targets and the benchmarks you have set for yourself based upon the performance of your investment.
Be sure about a commercial property’s square footage available.
When you are getting a loan for your commercial property, make sure that you are using a top grade lawyer who goes over everything side by side with you. If something does not go correctly in your real estate deals, it’s important to have someone on your side that will fight tooth and nail to represent your interests.
Make sure you are completely aware of the available square footage. There are two different ways to measure square footage for commercial properties. The first is usable square feet, while the second measurement is total square feet, which often includes unusable areas and walls. Know how many square feet for both, so that you can can make the process run smoothly.
Locating which commercial property you wish to buy is really only half of your battle. Just a little information goes a very long way.