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What To Do When Your Tenant Is Not Paying For Their Commercial Real Estate

Although there are usually quite a number of commercial real estate opportunities available at any given time, they are not as readily accessible as residential properties. You’ll have to look around to find them. Use the tips below to locate commercial properties.

Whether buying or selling, negotiate. Make sure that you are heard and that you fight for a fair price for the property.

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. If you’re looking at a property that’s close to things like a university, employment centers, or a hospital, they’re likely to sell fast, and at a high value.

Record problems by taking digital pictures of them. Include all the defects in the photo, such as carpet stains, or holes in the walls.

For a commercial property you plan to rent out, make sure it is a solid construction with a simple design. These types of buildings attract tenants more quickly than other buildings, as prospective tenants know that the building is less likely to have maintenance issues. In addition, these properties are low maintenance because they don’t frequently need repairs, a benefit to the owners, as well as the tenants.

Take the neighborhood into account when purchasing commercial property. A business located in a well-to-do neighborhood might be more successful, since the potential customers will be able to spend more. Yet, if you have a business that might thrive in a neighborhood where the not so well-off would opt to go to your business, then maybe that kind of neighborhood is for you.

Before you talk about a lease in commercial real estate, make sure to lower anything that might be thought of as events of default, wherever possible. This decreases the chances that the tenant will default on the lease. This is one thing you don’t want to happen.

Smaller Issues

When you are writing up the letters of intent, keep it simple by going for agreement on the larger issues first and let the smaller issues wait for a later time in the negotiations. This will help to reduce some of the tension in initial negotiations and will also make gaining agreement on some of the smaller issues much easier.

Make sure you try to read any disclosures for your agent. Make sure you understand the potential for the existence of dual agency. In this type of transaction, a real estate agency acts on behalf of both parties involved in the deal. This means that the agent is representing the interests of the lessor and lessee simultaneously. The fact that the agent is representing both parties must be disclosed to everyone involved and those parties must sign off on it.

If you want to invest in a piece of commercial real estate, think about the kind of tax breaks and benefits you might receive. Not only are there interest deductions, but also depreciation benefits to be aware of. There is also “phantom income”, which is taxed by the government although not received by the investor as cash. Before investing, become more familiar with this sort of income.

Tax Adviser

Consult with your tax adviser prior to purchasing any commercial real estate property. The tax lawyer will help you find out how much it will cost you and how much you will be taxed. Work together with your tax adviser to locate an area that have low taxes.

When searching for a commercial real estate broker, ask about their primary source of income. They should be able to discuss the question openly and tell you that their best interest differs from yours. Understand that there is still a profitable business to be ran behind the curtains, but a good firm will find an agreeable median between their financial needs and your real estate demands.

Finding the right commercial real estate property is only part of the equation. Gaining even a little bit of knowledge about commercial real estate helps you make better decisions.

Advice On Investing In Commercial Real Estate

Commercial real estate can be a hard field that requires an enormous time investment. The financial rewards of investing often eclipse the expenditures in time and money. Read on to learn some tips to help you become a savvy commercial real estate mogul!

Negotiating is essential. Ensure that your voice is heard, and that you are offering-or receiving-a price that is fair for both parties.

Use a digital camera to take pictures. Make certain your photos highlight specific defects such as carpet spots, wall holes and bathroom discolorations.

Consider online references that contain information written for both real estate novices and veterans. Having a great base of knowledge will give you the tools to complete every part of the buying process with confidence, leading to solid decision making.

Location is the most important factor in choosing a commercial property to buy. Think about the neighborhood your property is located in. Cross-check similar areas to see how they are growing. You need to be reasonably certain that the area will still be decent and growing 10 years from now.

Unit Apartment Complex

If you have two commercial properties on your short list, you should buy the larger one, if at all possible. Obtaining adequate financing is a major undertaking, whether you opt for a ten-unit apartment complex or a twenty-unit apartment complex. Just think about it as the more you buy the lower you are paying per unit, so you save more in the end.

When interviewing potential brokers, ask them to tell you about their experience level with the type of commercial investments you are interested in. Don’t use a broker who doesn’t specialize in the type of real estate investment you’re 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.

Occupation is the key when you purchase commercial properties for rent. If you have any open spaces, then you are losing money. You need to ask yourself why properties are not getting rented and fix any issues you discover.

Check a commercial property for access to electricity and other utilities; make sure there is good access. In addition to any needs specific to the business, you will surely need to have gas, electricity, sewer and water services, and so on.

Aim to avoid default before you sign a real estate lease. If you are able to successfully do this, you’ll find that your probability of having the tenant within the building defaulting will be low. This type of situation is considered very undesirable.

When you’re writing letters of intent, try to keep it brief by agreeing with the bigger issues initially and let the lesser issues be resolved at a later time. 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. Whilst you can take the first proposal responses, make sure that you don’t go any further without first informing the property owners of your plans. Don’t fear telling the owners that you might be interested in other properties. It could help you get a better deal.

Know your needs before you even start looking for a commercial real estate. Write down the things you like about the property, important features are office numbers, how many conference rooms, restrooms, and how big it is.

It’s critical to have emergency maintenance contact information very accessible. Speak with the landlord about handling of emergency repairs just so you know who to call in that situation. Know the phone numbers, and be aware of their response time. Protect your employees, customers, merchandise, and even your reputation by having a good emergency plan in place that will allow you to handle unexpected events without chaos.

As previously mentioned, purchasing commercial real estate can be very profitable. You want to be sure you follow the tips in the article to be successful with commercial properties, and avoid any tricks or traps.

Learn Before You Buy Commercial Real Estate

A collection of information about real estate is needed by anyone who wishes to get started in this complex world. Below is a compilation of suggestions that will help anyone interested in a successful commercial real estate venture achieve their goals.

Be calm and patient when looking at commercial real estate. Don’t enter into any investment opportunity without doing the proper amount of research. You could end up finding that the property falls short of your total goals, making it a regretful purchase. You may have to wait months or even years to find the ideal investment.

Websites with abundant real estate investment information are worthwhile references for novices and experienced investors. It is wise to learn all you can, as it is impossible to know too much.

When making the selection of brokers to work with, be sure to find out how much experience they have on the commercial market. Make sure that the agent has the proper expertise with the type of real estate purchase or sale you are looking for. You and this broker should enter into an agreement that is exclusive.

Learn to set realistic prices by observing the market. Market conditions can vary greatly; therefore, an appraisal may not be the best indicator of true market value.

You should always request the credentials of any and all inspectors working with your real estate transaction. Pest removal companies should be closely checked because many non-professionals do this work. This helps avoid major post-sale problems.

For a commercial property you plan to rent out, make sure it is a solid construction with a simple design. These types of buildings attract tenants more quickly than other buildings, as prospective tenants know that the building is less likely to have maintenance issues. They are also easier to keep in good repair and require less repairs, which will save you and your tenants money over time.

Ensure there is adequate access to utilities on the commercial property. You will need access to electricity, water, sewer and maybe gas in addition to any unique need that your business has.

Eliminate as many definitions of default (i.e., actions that constitute default) as possible before beginning to negotiate a lease with a new tenant. So a tenant can’t default on a lease they sign with you in this type of situation. You do not want this to happen to you.

Advertise the commercial property to both locals and non-locals. There are a lot of people who make the big mistake who think that only local people want to purchase their property. Many investors will consider purchasing a property outside their own region if the price is right.

Real Estate

There isn’t just one type of broker for commercial real estate. Real estate agents will work with landlords and tenants, but there are also some that only work with tenants. If you hire a broker that only deals with tenants you may be better off, they are more experienced.

Check any disclosures a potential real estate agent gives you carefully. Remember that a dual agency could occur. Dual agency refers to a situation in which a real estate agent represents both the landlord and the tenant in a commercial transaction. In effect, while you are paying the agency, they also work for the opposite side; if you are a prospective tenant, for example, the dual agency represents the landlord, as well. If dual agency is the case, it should be out in the open and both the landlord and the tenant should be in agreement with the arrangement.

In a commercial loan, the borrower must order the appraisal. It is not unusual for the bank financing your investment to refuse to accept any other appraisal. Order your appraisal yourself to ensure that you will be eligible for commercial loans.

Real Estate

These tips should get you started on your way to being a successful real estate buyer. These tips were put together in the hopes of increasing skill and knowledge, and improving your ability to either buy or sell in the commercial real estate market.

Making The Most Of Your Commercial Real Estate

Investing in commercial real estate is a great way to earn significant profits. Some people may shy away from it due to the amount of money that investors stand to lose.

Record problems by taking digital pictures of them. Make certain that the pictures show irregularities, such as holes or bad paint on walls, carpet stains, and bathtub or sink discoloration.

Try practicing patience and remain calm, if you are considering purchasing any commercial real estate. Don’t make any hasty investment decisions. You could end up finding that the property falls short of your total goals, making it a regretful purchase. It could take up to a year for the right investment to materialize in your market.

Pest Control

When renting or leasing property, be sure to set up some form of pest control. If you are renting a space that has known vermin problems, be sure to find out exactly who is responsible for pest control.

You might have to spend a lot of time on your investment at first. First you will need to find a property that you think is worth purchasing, and you may have to remodel or repair it. Don’t let the amount time you need to put in during this phase discourage you. You will be rewarded later.

Unit Building

If you trying to choose between two or more potential properties, it’s good to think bigger in terms of perspective. Getting the financing you need is going to be complicated whether you choose a five-unit building or a fifty-unit building. Generally, it’s like buying in bulk. As the number of units purchased goes up, the cost per until will go down.

As you comb through possible brokers, search for those who have extensive experience in commercial markets. Verify they have experience in working with the type of properties you are interested in. You and this broker should enter into an agreement that is exclusive.

Commercial rental buildings should feature sturdy construction and simple details. These are the most likely to quickly invite tenants into the space, because they know it is well-cared for. These properties are also more cost effective for you and your tenants due to the fact that they only require minimal upkeep and repairs.

Ensure there is adequate access to utilities on the commercial property. In addition to any needs specific to the business, you will surely need to have gas, electricity, sewer and water services, and so on.

Prior to negotiating with the lease of your commercial real estate, try to decrease anything that could be a default as you can. If you are able to successfully do this, you’ll find that your probability of having the tenant within the building defaulting will be low. You don’t want tenants defaulting on your leases.

Commercial real estate is immensely profitable for some. You need to not only front a substantial down payment, but have the time and patience to see your investment through to the end, as well. To make this happen, put the advice you just learned in the above article to use.

How To Be Successful In Real Estate

Owning commercial property can be an exciting endeavor, but it does require a lot of effort to take care of. You may feel overwhelmed, or worry that you won’t be able to take care of all that you need to. Learning all the things you have to about being the owner of a commercial property might be hard, but this article will get you going in the right direction to buy some commercial property!

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. In addition, you want to keep in mind what else is close to the property. Any place that supplies a large number of jobs to the economy can raise the resale value of any property and make it much faster to sell if you decided to go that route. Big employers might consist of hospitals, factories, or universities.

Pest Control

Bugs and rodents are always looking to ruin your property, so factor pest control into your business strategy when renting commercial property. If you are renting in an area that is known to have a lot of rodents, pests, or bugs, then ask your agent what the policies on pest control are.

When choosing between two different types of commercial properties, it’s best to look at things on a bigger scale. Financing may be no more difficult for the large apartment building than the small one. Generally, this is much like the principle of buying in bulk; the more units you buy, the lower the price per unit.

If you are selecting a broker, ascertain the amount of experience they have had within the commercial real estate market. Make sure they have their own expertise in the area of your curiosity or it could be an endeavor wasted. At that point, you might want to consider entering into an exclusive listing with that agent.

If you plan on renting out your commercial properties, find simply and solidly constructed buildings. Tenants will be attracted to these spots because they are maintained well. Maintenance is also easier, because these buildings require less repair.

If you rent or lease the commercial properties you own, keep them occupied as much as possible. You’re the one who has to pay to keep the building maintained, and if no one’s renting them, you’re wasting your money. If you have multiple vacant properties, figure out why this is, so you can understand why your tenants are leaving.

The neighborhood where the property is located is very important. Your business might do better in affluent communities, since your prospective foot traffic has more money. If your business is a bit more shady, like a rent-to-own store, payday loan outlet, or pawn shop, it’s better to locate in a poor neighborhood.

Both local and non-local advertising of your commercial real estate property will be beneficial to you. Many sellers mistakenly assume that their property is only interesting to local buyers. Many investors will consider purchasing a property outside their own region if the price is right.

Commercial Property

Now that you’ve reached the end of this article, you can see that everything related to commercial property requires work and effort. You will also need to stick with it and not give up. Take the advice from this article to heart, and follow it and your dream of owning commercial property.

Tips To Buy And Sell Commercial Real Estate

Whenever you invest, you need to know the type of property that is best suited to your needs. Define your sphere of interest prior to beginning your search. If you make the wrong decision, it could become a financial disaster. The hints and tips in the following article can help you make informed choices in the commercial real estate market.

Whether you are buying or selling, don’t shy away from negotiation. Make your voice heard and strive for fair market value pricing.

Don’t be led by hype and fads when searching for commercial real estate. Don’t enter into any investment opportunity without doing the proper amount of research. The property you buy in a hurry might not deliver what you need to reach your goals, leaving you to regret the purchase afterward. Plan to keep your eye on your market for as long as a year if you want to find the right investment.

Take some time to visit websites that are devoted to commercial real estate. These sites have lots of information for both new investors and seasoned professionals. Excessive knowledge isn’t a problem you have to worry about, so it always proves smart to learn all you can.

If you trying to choose between two or more potential properties, it’s good to think bigger in terms of perspective. Financing may be no more difficult for the large apartment building than the small one. Generally, it’s like buying in bulk; the more you buy, the less each unit is.

When choosing brokers with whom to work, find out the amount of experience they have dealing with commercial properties. It is important that their experience fall in line with your buying and/or selling goals, so make sure to ask what their specialty is. Make sure you find an exclusive agreement that works for you and your broker.

Every prospective real estate purchase should include thorough onsite inspections; it is equally important to verify the inspectors’ credentials. A lot of people have no accreditation, especially in pest control services. This helps avoid major post-sale problems.

When you are shopping for a commercial property, be sure to confirm that you will have access to utilities. Water and sewer access will be needed in addition to electricity. You may want the option to use natural gas, as well.

You will need to know what you are looking for in a commercial property prior to beginning your search. Draw up a list including all the features your ideal property should have, such as property size and location, or the total number of restrooms, offices, etc.

It is important to know how to deal with emergency maintenance. You should ask your landlord who is in charge of handling emergency repairs. Learn the phone numbers and response times. Your landlord should be able to provide you a list of emergency contacts so that you can map out a safe and well organized emergency plan, in case an emergency happens during normal business hours.

As you can see from these tips, a successful purchase of commercial property is definitely possible. However, your success depends on research, knowledge, expertise, and just a hint of luck. Success isn’t guaranteed, but if you keep the above advice in mind, you are much more likely to be successful.

Tips For Success With Your Commercial Real Estate Plans

There is a lot more possibility of making money in commercial property than there is in residential property. It can be a little harder to find the good opportunities, though. This article contains information to help you figure out what you need to know to make wise commercial real estate decisions.

Use your digital camera to take pictures of the property. Include all the defects in the photo, such as carpet stains, or holes in the walls.

Buying commercial properties requires plenty of perseverance and calmness. Don’t make any hasty investment decisions. If the property doesn’t suit you in the end, you may regret your hastiness. You may have to wait months or even years to find the ideal investment.

You will probably have to put a lot of effort into your new investment at the beginning. Good opportunities can be found if you look, and after you have made a purchase, the property may require repairs or remodeling. Do not become discouraged due to the time-consuming nature of this process. Your efforts will be rewarded.

Learn to understand the commercial real estate metric called Net Operating Income (NOI). In order to be successful and stay profitable, watch this number closely, and take steps to make certain it does not fall into the negatives.

Take a tour of properties you are considering. Look into having a professional contractor accompany you as you take a look at the properties you’ve been thinking about purchasing. Make preliminary proposals to break the ice and open negotiations. Give a bit of thought to the counteroffers before deciding to accept the offer, make a counteroffer yourself or walk away.

You will need to know what you are looking for in a commercial property prior to beginning your search. You should write down the features you are looking for, such as size or settings.

You might have to make improvements to your space before you can use it. The changes don’t have to be extensive. You may just want to repaint or rearrange furniture. Sometimes a new business will need to alter the floor space by moving interior walls. Get an agreement ahead of time about who will be financially responsible for these improvements, or at least try to have the landlord responsible for part of the cost.

Real Estate

When searching for a real estate agent, keep their disclosures in mind so you know who they are working for. Make sure you understand the potential for the existence of dual agency. Dual agency in real estate is when the agency works for both parties. The real estate agency will represent both the seller and the buyer. Real estate agents must disclose any dual agency. Both the tenant and the landlord must agree to accept dual agency.

Borrowers are required to order the appraisal in commercial loans. Banks will not allow them to be used later. Protect yourself from this problem and get the appraisal done on your own dime.

If you plan on investing in commercial real estate, you should consider the tax benefits you will receive. As with home mortgages, the interest paid on commercial real estate loans is tax-deductible, as is depreciation. Investors often get ‘phantom income’ this is income that does not have tax attached. Before you make any investments, be sure you are aware of this kind of investing.

After reading this article, you should be familiar with commercial real estate basics. Remain flexible and continue to stay nimble as you make your way through the many steps leading to owning your own property. When doing this, you give yourself the best opportunity to realize a good investment opportunity that other people might not see, resulting in you maximizing your profits.

Need Advice On Commercial Real Estate? Check Out These Tips!

Being a commercial property owner is exciting, however, it can also be quite an undertaking when trying to manage the property. Many property owners are unsure about where to begin ensuring that their properties are adequately maintained. It can be difficult to learn necessary in order to succeed in commercial real estate. This article is designed to help people such as yourself. It provides valuable advice on a wide range of topics related to commercial real estate.

Whether you are buying or selling, don’t shy away from negotiation. Fight for the best price possible and make sure that all parties involved listen to you.

Examine socioeconomic conditions in the neighborhood you’re thinking of purchasing commercial real estate in. Pay special attention to the unemployment rate, and the average income level in your property’s neighborhood. Property that is located near a large business, a college, or a hospital has better resale value and will often sell easier.

Make sure you always remain cool, calm, and collected when you begin to look for commercial real estate. Never rush into a particular investment. You could end up finding that the property falls short of your total goals, making it a regretful purchase. It could be a year-long process before you begin to see investments in your market pay off.

NOI, also known as Net Operating Income, is a crucial metric to understand in the world of commercial real estate dealings. Success is about staying in the green.

You should be certain that your asking price is a fair offer for your piece of real estate. Market conditions can vary greatly; therefore, an appraisal may not be the best indicator of true market value.

Every prospective real estate purchase should include thorough onsite inspections; it is equally important to verify the inspectors’ credentials. This is true when working with pest or insect removal, since many people who are non-accredited work in these fields. By hiring an experienced professional, you’re less likely to run into problems after you buy the property.

Empty Units

If you rent out your commercial properties, always remember to keep them occupied. Remember that if you have empty units, you have to take care of them. Maintenance costs on empty units can add up. You need to ask yourself why properties are not getting rented and fix any issues you discover.

Make sure the property you are interested in has access to 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.

One of the biggest considerations in the process of attaining commercial property is to know the neighborhood of each and every prospective location. If you purchase it in a more affluent neighborhood chances are your business will be more successful, because the pockets of your potential clientele are a bit deeper. Yet, if you have a business that might thrive in a neighborhood where the not so well-off would opt to go to your business, then maybe that kind of neighborhood is for you.

As you have read, to be really successful, you do have to do your proper research, and then put in a decent amount of work and effort into it. It’s also truth that you must be persistent. Keep the tips in this article in mind, and you’ll have the knowledge you need to find success in commercial real estate.

Tips For Success With Your Commercial Real Estate Plans

The idea of owning commercial real estate can be exhilarating, but purchasing and managing commercial property can also be complex and demanding. This can leave you wondering where to even begin to get things taken care of. Figuring out the ins and outs of commercial real estate isn’t always easy, but in the following paragraphs, you’ll learn some essential tools of the trade.

Regardless of whether or not you are the seller or the buyer, negotiate! Ensure that your voice is heard, and that you are offering-or receiving-a price that is fair for both parties.

Practice calm and patience when you are looking into the real estate market. Don’t enter into a commercial venture hastily. If the property isn’t really what you want, you will regret your haste. It could take some months, possibly a year, for your dream investment to appear in the market.

There are many informational websites available that aim to provide new and seasoned real estate investors with the necessary information. Excessive knowledge isn’t a problem you have to worry about, so it always proves smart to learn all you can.

When deciding between two viable commercial properties, it is best to think on a larger scale. The difficulty in securing financing doesn’t increase linearly with the size of the building you are buying. Just think about it as the more you buy the lower you are paying per unit, so you save more in the end.

When you are looking at a commercial property, be sure to look at the neighborhood, too. If you are buying the property in a more expensive neighborhood your business will most likely be a lot more successful, people there have more to spend. If your business services will do better in a poor neighborhood, buy property there!

Be sure you position yourself well when it comes to negotiating any lease for commercial real estate, you want to do things like decrease what could be considered as a default event. This will lessen the possibility of a lease default by your tenant. That is not a situation you would want to encounter.

Your new space may need improvements before you can occupy it. In some cases, these may be minor changes, such as a new coat of paint for the walls or a new arrangement of furniture. However, many people find they need to take out or add walls to make modifications to the basic floor plan. You should pre-negotiate the cost of these alterations with the landlord, and try to get them to contribute towards at least part of them.

Commercial Property

Buying and owning commercial property does require work, effort, and research in order to be able to have a good experience. It’s also worth mentioning that it’s a never-ending process. If you remember the tips you have learned from this article, you will soon own the ideal commercial property for your needs.

How To Prepare Yourself To Be An Expert In Commercial Real Estate

Commercial and industrial properties are always being listed on the market, but they are not highly advertised, like residential homes are. A certain level of knowledge is required to locate profitable commercial properties. This knowledge, along with other things, is necessary in order to be successful. In this article, you will find valuable tips that can help you succeed in commercial real estate.

Consider the economy in the area you’d like to buy real estate in before investing there. Homes that are located near schools, hospitals and other major employers are assigned a higher resale value.

It is a far lengthier, and more complicated, process to purchase a commercial property than a residential one. However, all of this is required because it facilitates higher returns on your investments.

Commercial property is an investment. This investment is not just money, but also time. First you will need to find a property that you think is worth purchasing, and you may have to remodel or repair it. You should know what to expect and not give up. You will be rewarded later.

Unit Building

If you are trying to choose between two good commercial properties, think big. Getting the financing you need is going to be complicated whether you choose a five-unit building or a fifty-unit building. You may have a better price, figured per unit, on the larger apartment complex than on the smaller one.

You should thoroughly look into the brokers that you are considering, and determine their level of expertise and experience when dealing with commercial real estate. Be sure that they specialize in the area that you are buying or selling in. When you find the right broker, make sure your agreement is exclusive.

Learn about Net Operating Income, or NOI, a metric in commercial real estate. Having positive numbers is the only way to ensure success.

Inspections are necessary before buying any piece of real estate. When arranging an inspection, be sure to check both credentials and reputation before hiring an inspector. There are more than a few people working in without certification in the pest removal and insect fields, so make especially certain to ask for proof of certification from them. This can keep you from having bigger headaches after the sale.

Search for buildings that are simply designed and constructed if you’re planning on renting out commercial property. Tenants will be more likely to rent space in this type of building, as it looks taken care of. This sort of building is virtually maintenance-free, so there will be fewer headaches for owners and tenants.

Locating which commercial property you wish to buy is really only half of your battle. Every bit of information can make a difference.