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Getting Some Great Tips About Commercial Real Estate

While entering the world of commercial real estate can be frustrating for beginners, often it can be difficult for even the most experienced buyer, too. In the article below, many suggestions and advice are outlined in order to help alleviate some of the tension that can build up from your career in commercial real estate.

Record problems by taking digital pictures of them. Make sure your pictures clearly show any damage or defects, including carpet stains, holes in the walls or discoloration of plumbing and counter tops.

Commercial transactions are significantly more time-consuming, complex and involved than the home-buying process. But, you should realize that the nature of such deals is critical to maximizing the profit potential of a prospective property.

When making decisions between one commercial property and another, think big. Getting the financing you need is a difficult thing, regardless of the size of the property. The concept here is the same as any other situation where you are purchasing multiple things. The more you purchase, the less you will pay for each unit.

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.

You should learn how to calculate the (NOI) Net Operating Income of your commercial property. For the investment to be profitable, it has to produce more income than operating expenses.

If you are considering more than one property, be sure to obtain a checklist for the tour site. 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. It will likely be to your advantage to informally mention that you are looking at more than one property. It may help get you a better deal.

When you are considering making an investment in commercial real estate, know what you need. Draw up a list of specific attributes your office space must have, including size, number of meeting rooms, and available bathrooms.

Dual Agency

Make sure you try to read any disclosures for your agent. Understand the meaning of dual agency. In this type of transaction, a real estate agency acts on behalf of both parties involved in the deal. 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. Dual agency should be disclosed and both parties should agree to it.

Prior to making any purchase, consult with your tax adviser. A tax adviser can tell you what your tax liabilities are on the purchase and future income from it. Utilize the advice given to you by your tax adviser in order to locate a property in an area where your investment will incur the least taxes.

In order to find a reputable real estate broker who is going to suit your needs, ask your preferred choices some questions, including their idea of what constitutes a success and a failure. Ask them how their results are measured. Look for online ratings or complaints. You should only partner up with a broker if there is common ground in your shared beliefs and thinking.

Commercial properties can be difficult to find, regardless of how experienced you are. This is why articles like these are written, as they are there to teach you the skills necessary to give you a more pleasant and stress-free experience when searching for commercial property.

Practical Advice For Your Commercial Real Estate Dealings

Investing in commercial real estate offers a world of opportunities, but in many cases it is well worth the hassle. But, the rewards can be very lucrative as well. Use these tips in this article carefully to help you succeed.

Regardless of whether you are buying or selling the property, it is in your best interest to negotiate. Make sure that you are heard and that you fight for a fair price for the property.

You should take digital photos of the condition. The picture needs to show defects like carpet spots, wall holes, or discolored sinks and tubs.

You should know what kind of pest control services are available to you when renting or leasing. In some areas, in particular in areas with known populations of pests, this is a very important concern.

Real Estate

Search online for websites that provide information about real estate investments. These general interest websites can provide you with useful information whether you’re new to the world of real estate investment or have made a career out of investing. Learning more about real estate will always benefit you, and you can never learn enough.

When selecting a broker, find out the amount of experience they have with the commercial market. 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. Also, consider entering into an agreement that will be exclusive between you and that broker.

If your property deal requires inspections (as it should), look at the inspector’s credentials. 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.

If you plan on renting out your commercial properties, find simply and solidly constructed buildings. These units draw in the best tenants because they are higher in quality and have nicer appearances. Because these properties are in great condition, the property owners and the occupants will have a simpler time with basic maintenance service.

Have a professional do an inspection of your commercial property prior to you listing it as available on the market. Listen carefully to the inspector’s report so that you can immediately repair any problems.

Go on a tour of all potential properties. Even better, have someone who knows commercial real estate tour the properties with you. Start negotiations by making a preliminary proposal. Before you choose, make sure you look over your offers a few times.

Commercial Real Estate

The value of your investment in commercial real estate can be great! Pay close attention to the advice presented in this article to circumvent potential problems, and build a successful career in commercial real estate.

The Pros And Cons Of Buying Commercial Property

If you are just starting out in commercial real estate investing, you will surely find this collections of tips helpful. The following paragraphs include such a collection and will enable the enthusiastic beginner to grow into a pro in commercial property dealings.

Regardless of whether or not you are the seller or the buyer, negotiate! Protect your interests by standing up for yourself regardless of who is on the other side of the table. Negotiate a fair price rather than accepting one that is too high or too low.

To prepare for any sizable investment in commercial real estate, investigate indicators of fiscal health around the property in question, such as average income levels for nearby residents, rates of employment and unemployment, and whether jobs in the area are rising or falling. 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.

Use a digital camera to document the conditions. Make sure the picture shows the defects (such as spots on the carpet, holes on the wall or discoloration on the sink or bathtub).

There is much more time and work involved in purchasing a commercial property rather than a residential property. Remember that the time and efforts you are investing will pay off.

Get the credentials of any person who will be doing an inspection on a property you are trying to buy. There are many non-accredited people who work in such fields as insect removal. By hiring an experienced professional, you’re less likely to run into problems after you buy the property.

If you want to rent your commercial property, well built solid buildings are your best bet. Tenants are more likely to move in when they know the property is well taken care of. Such buildings also usually need fewer repairs, which is an advantage for the tenants, as well as the landlord.

Ensure there is adequate access to utilities on the commercial property. Your business is sure to have unique utility requirements, but services typically required by most include sewage, water, power, telecommunications and maybe even natural gas.

Go on some tours of places you might want to buy. Think about asking a contractor to assist you in evaluating each of the properties, since they will likely see things that you may miss. Once that is done, you can submit your proposal and begin negotiations. Prior to making any final decision, you should thoroughly go over the counteroffers you have received.

Make a checklist to compare details when looking at several properties. Collect responses from everyone that offers one, but inform the property owners before you do anything else. Don’t hesitate to let it be known that you are entertaining other options. This may help you snag a better deal, ultimately.

There are real estate brokers who deal exclusively with commercial investments. Some agents represent tenants only, while brokers work alongside tenants and landlords alike. You may be helped much more with a broker who just works with the tenant, as that person most likely has more experience in handling tenants successfully.

Appraisal Yourself

If you are taking out a commercial loan, you must pay for the appraisal yourself. There is a good chance that the bank may not validate it otherwise. Cover your bases and order the appraisal yourself.

As a new investor you should focus on one area of investment only. Pick a property type you desire to initially start with and focus on it with your undivided attention. It is better to do your best at one type than to be average at many types.

Hopefully, this article has provided you with a good base of knowledge upon which to build your successful endeavor in the commercial real estate market. This collection of tips can help you better your selling or buying technique in commercial real estate.

Commerical Real Estate Tips From The Pros

As a matter of fact, commercial real estate frequently offers more lucrative opportunities than residential real estate. Finding that diamond in the rough isn’t always easy, though. By following these tips, you will be able to understand the variables inherent in commercial real estate dealing. Therefore, you will be better able to make great deals.

Regardless of whether you are buying or selling the property, it is in your best interest to negotiate. Make sure you have a voice and that you are offered a reasonable amount of money for the property.

If you are renting or leasing, be sure to know about pest control arrangements. 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.

Your investment may require a large amount of time to begin with. 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 never give up because it is time consuming. You will be rewarded later.

When renting out your own commercial properties, keep in mind that is always best to have them occupied. When you have an open space, you have to shell out the money to keep it looking great and running well. If occupancy is low, you may want to see if something is wrong with your property, and if there is, fix it.

Less Affluent

When considering a piece of property, you must pay close attention to the surrounding area. 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. You might want to buy a property in a less affluent neighborhood if you are selling products or services that less affluent people would find attractive.

Before you can start using the property you’ve purchased, you might need to make some improvements. This might include superficial improvements such as repainting a wall or arranging the furniture more efficiently. However, many people find they need to take out or add walls to make modifications to the basic floor plan. The contract you negotiate should clearly spell out whether you or your landlord will pay for these changes, or whether the cost will be shared and in what proportions.

You should always know how to get in touch with emergency maintenance. Talk to the landlord about who does emergency repairs for your building or office. Have a list of phone numbers to call if you need emergency repairs, and know how much time it usually takes for repairmen to arrive. Create an emergency plan and ensure everyone in your unit knows where to find it, how to follow it, and what it entails.

Dual Agency

Carefully peruse the disclosure statements issued by the real estate agency you intend to hire. Make sure you understand the potential for the existence of dual agency. In this case, the real estate agency represents both sides of the transaction. Dual agency occurs when the landlord and the tenant hire the same agent. Whenever dual agency is part of a transaction, it must be disclosed to both parties of the transaction. Both sides must also agree to the dual agency.

Be aware of the potential tax benefits of investing in commercial property. Investors receive depreciation benefits as well as interest deductions. There is also “phantom income”, which is taxed by the government although not received by the investor as cash. You need to be aware of this type of income before investing.

Always assure yourself of any company’s intentions, making sure they take a primary focus on your own needs, rather than an apparent consideration for only their firm’s income. If you don’t do this, you might get taken advantage of or wind up paying much more money over time.

After reading the article above, you should know the basics of making a good investment. Maintain flexibility and think fast so you can steer your way through the constantly changing market of commercial real estate. With this approach, you will be able to identify hidden opportunities, and make some very profitable deals.

Learn How To Be Successful In Commercial Real Estate

No matter how experienced you are with commercial real estate, it can be a difficult business to succeed in. In this article, you can find tips to help reduce your stress when it comes to dealing with commercial real estate.

Don’t make any big real estate purchases until you’ve evaluated the unemployment rates, income levels, and expansion rates of the area. Think about what locations are near where you are thinking of buying. Hot spots are usually around places like hospitals or universities because the surrounding neighborhood is going to be more lively and open with jobs available.

When entering the commercial real estate market, patience is perhaps your best ally. Do not be hasty about making a investment decision. You are at risk of making poor decisions when rushing into things, and if your property investment does not work out, you will regret it. Be patient, as it could take as long as a year for just the right investment property to turn up.

Real Estate

Search online for websites that provide information about real estate investments. These general interest websites can provide you with useful information whether you’re new to the world of real estate investment or have made a career out of investing. No one can ever honestly claim that they know too much.

Location is key in commercial real estate. You will want to consider many things, including the neighborhood that the property is located in. Also, consider local growth projections. Do not buy a property that is located in a neighborhood likely to take a wrong turn in the next five years.

Commercial property is an investment. This investment is not just money, but also time. Although the investment might be a tremendous opportunity, it will only be good if you take care of any repairs or perhaps do a bit of remodeling. Don’t throw in the towel because the process is taking too long to complete. Later, you’ll be rewarded for the time and money you have invested.

Don’t become greedy and over-inflate your real estate asking price. A variety of different criteria require consideration in order to increase or decrease your property value.

You should examine the surrounding neighborhood of any commercial real estate you may be interested in. For example, if you’re offering high-priced goods or services, you might want to purchase property in wealthier areas where people are likely to be able to afford to buy from you. Bargain-oriented goods and services will find a more receptive market in lower- to middle-class areas.

Go on some tours of places you might want to buy. Think about having a contractor as a companion to help evaluate the property. Put forth your initial proposals, then open the table for negotiations. Before making any commitment, you should carefully evaluate each offer and counteroffer.

Commercial Real Estate

The search for appropriate commercial properties can stress you out regardless of how much experience you’ve had in the commercial real estate market. The article below will help to lower the stress involved, and have a pleasant experience during your hunt for commercial real estate.

Commercial Property – Need To Know

Many people have made it big investing in commercial property. There is no magic formula. With industry knowledge, some experience with this knowledge and the drive to work, you will have everything you need. The following advice can help you find success by investing in commercial real estate.

When you are buying or selling commercial real estate, always negotiate. Be sure that your voice is heard so that you can get yourself a fair price on the property you are dealing with.

Take into consideration the local unemployment levels, average income, and job market before investing in real estate. Properties centrally located near universities and hospitals will have a consistently higher value, and it will sell more quickly.

Take photos with a digital camera. Try to make sure that your pictures shows the defects.

Pest Control

Another factor to be aware of when shopping for property to rent or lease is who pays for pest control. This is important in less desirable locations where rodents and/or bugs are an issue. Have your rental agent inform you of any associated policies for pest control.

Your investment might prove to be time-consuming in the beginning. First, you will need to search for an opportunity and purchase the property, as well as perform any repairs that are required. Do not become discouraged due to the time-consuming nature of this process. The investment will be repaid as time goes on.

When deciding between two viable commercial properties, it is best to think on a larger scale. Finding the right bank to finance you might be hard, even if you are going for a smaller building. This works in the same way as buying bulk items from Costco. You buy large numbers of items to pay less per item.

Educate yourself about the measurements of NOI: Net Operating Income. To be a success, you need to be able to stay on the positive number side.

Have property professionally inspected before you decide to put it up for sale. Listen carefully to the inspector’s report so that you can immediately repair any problems.

Start drafting letters of intent by focusing on the more central issues. Once you have agreement on those, broaden the negotiations to include any smaller issues that remain. By coming to agreement on the larger issues, it will make the negotiations go much easier.

Establish what you need before searching in commercial real estate. Identify which features in a commercial property are high value to you, and make a list. This can include the number of floors, units, square feet, the building layout, and anything else that is important to you.

Regarding commercial loans, it is the borrower’s responsibility to obtain an appraisal. The bank won’t let you go back and order it later. Plan for this eventuality and arrange for the appraisal on your own.

Tax Adviser

Consult your tax adviser before buying your first commercial property. A tax adviser can tell you what your tax liabilities are on the purchase and future income from it. An adviser could even help you find an area with lower taxes.

Learn how each real estate broker intends to get you the best price before settling on one. Discuss each potential broker’s experience and relevant education with him before hiring a broker. Choose a broker who only uses ethical methods and can help you to get only the best deals. Request additional information or examples of the results from previous negotiations.

If you know how to go about it, you can find success with commercial real estate. Remember the ideas in this article, then apply what you can to your own business. Keep learning as much as you can so as to improve your skills in searching out a great deal. The more experience you gain, the more likely you will become successful.

Get Into Commercial Real Estate With This Advice

Everything must be in the right order when you are selling or buying commercial real estate. While you may feel confident in this field, the truth is that even the masters of real estate continue to learn as much as possible every day. In this article, you will find several useful tips that can help you learn more about commercial real estate.

Whether you are buying or selling, don’t shy away from negotiation. Protect your interests by standing up for yourself regardless of who is on the other side of the table. Negotiate a fair price rather than accepting one that is too high or too low.

Commercial property dealings are exponentially more complicated and time intensive than buying a residential home is. But, you should realize that the nature of such deals is critical to maximizing the profit potential of a prospective property.

NOI, also known as Net Operating Income, is a crucial metric to understand in the world of commercial real estate dealings. To be successful, you must stay profitable.

When selling a property, you should make certain that whatever price you set is realistic. Most appraisers can’t take all factors into account because there are an infinite number of variables involved in determining the value of a piece of property. These variables can all make your property worth less than the appraisal claims it is worth.

Get the credentials of any person who will be doing an inspection on a property you are trying to buy. This is true when working with pest or insect removal, since many people who are non-accredited work in these fields. This can keep you from having bigger headaches after the sale.

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 are looking in a high-rent neighborhood, you may have a better chance at success once you get going because of the potential of area residents to have money to spend. If the service you offer would appeal to less affluent people, you should not set up your business in an affluent neighborhood.

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. 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 want to ensure this doesn’t happen at all costs.

Take a tour of any property that you are interested in. When looking at a property that you are thinking of purchasing, it’s a good idea to have a licensed contractor accompany you. Submit a first offer and solicit counteroffers. Make sure you evaluate any counteroffers well enough before you make any purchasing decisions.

In writing letters of intent, focus on major issues to begin with. Many smaller issues will fall in line on their own with this approach. If not, you can work them out later. By focusing on the big stuff first, you will have more pleasant negotiations, and you will be better able to manage small matters in the end.

If you have just begun investing, try to stick to one kind of investment. Zero in on your favorite type of property and focus solely on that type, for now. It is better to do your best at one type than to be average at many types.

To ensure that you receive quality service when searching for commercial property, find a company which cares for their customers. Working with the wrong agency could cause you to commit mistakes and lose money.

Ask your real estate broker how they define success and failure. Their answer can help you determine whether they are the best broker for you. Ask them how they measure their results. Ask them to explain the methods and techniques they employ. If your own views differ greatly from a potential broker, you two may be incompatible for a business relationship.

Do not ever think you know everything about purchasing commercial properties. There is always more to learn and information is always evolving when it comes to real estate. You will benefit from using wisely what you have just learned.

Confused About Commercial Real Estate? These Tips Can Help!

Commercial real estate investment has an enticing reward potential, however, a considerable amount of homework is required on the part of any would-be investor. The tips you just read have helped many real estate investors make a tidy profit, and if you follow these tips, there is no reason why you can’t follow in their footsteps.

Negotiate, whether you’re the seller or the buyer. Make certain that your voice is heard, and do what it takes to find a fair property price.

Use a digital camera to take pictures. The picture needs to show defects like carpet spots, wall holes, or discolored sinks and tubs.

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’ll regret it quickly if your lack of research results in a property without much re-sale value. Some investors have to wait for a year or so before they find the right opportunity.

Pest Control

When renting or leasing property, be sure to set up some form of pest control. Talk about pest control with your agent if the area is known for rodents and bugs.

Always ask to see the credentials of any inspectors you hire for your real estate deal. 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 prevent larger problems from occurring after the sale.

Commercial rental buildings should feature sturdy construction and simple details. Rental spaces that appear sturdy and well-maintained tend to attract tenants more quickly. Because these properties are in great condition, the property owners and the occupants will have a simpler time with basic maintenance service.

Always rent out all the available space in your commercial rental properties. If you have open spaces, then you are the person who will be paying for their upkeep and maintenance. If you notice that you have several vacant properties, try to find out why, and look at ways of enticing tenants back in.

Less Wealthy

You have to think seriously about the neighborhood where a piece of commercial real estate is located. Purchasing in neighborhoods that are in the upper price per square foot range will help for successful business because the surrounding owners have more money to spend. However, if you’re offering services that less wealthy people may be more interested in, you probably want to purchase property in a less wealthy area.

If you read the preceding paragraphs with care and apply the points to your life, you’re going to start off well. When you take the time to use the advice that has been discussed, you can enjoy a lot of the same rewards as others have who learned how to make money from commercial real estate.

Tips For Successful Sales And Purchases In The Commercial Real Estate Market

Purchasing real estate related to commercial purposes is a lot different from purchasing a home. Read on for a few suggestions and tips that could help you get a great deal.

Use detailed photos to create this documentation. In the “before” photos, especially, make sure that the pictures clearly show defects such as stains on the carpet, discolorations in the tub and sink, and holes in the walls.

It is easy to get emotional when you are venturing into the commercial real estate market, but is is very important to stay patient and remain calm. Do not invest into anything before thinking carefully. You’ll regret it quickly if your lack of research results in a property without much re-sale value. Realize that it can sometimes take at least one year for the proper investment opportunity to present itself.

There is much more time and work involved in purchasing a commercial property rather than a residential property. Remember that the time and efforts you are investing will pay off.

There are many things to consider when determining the best option between two commercial properties. When choosing between the two, think big! Getting adequate financing is very important in undertaking an investment that pertains to a ten or twenty unit apartment complex. Generally, this is the same situation as if you were buying something in bulk, the more you buy the cheaper the price of each unit.

It is always best to be aware of how your asking price is in relation to the market price. Many things alter the value of your property./

You should always request the credentials of any and all inspectors working with your real estate transaction. This is especially true of people who work with insect or pest removal, as there are many non-accredited people working in these fields. You want to avoid a future liability that can come after the sale, if the inspection was not correct.

If you rent commercial property, do what you can to keep occupancy high. If you have units that are unoccupied, you will not only lose money due to lack of rent, but also the upkeep of the space. If you have several properties open, you should ask yourself why, and attempt to correct the issues that may be driving out your tenants.

Take the neighborhood into account when purchasing commercial property. 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. However, if your services are more frequently utilized by people of lower socioeconomic brackets, be sure to find a neighborhood that suits it.

Be sure to have your property inspected by a licensed inspector prior to placing it up for sale. If anything turns up during the inspection, you should immediately address the problem.

Advertise your property for sale locally and outside your region. Many people only think locals will buy their property, and that’s a mistake. Many private investors find it appealing to purchase properties that are affordably priced outside of their direct area.

If you are writing a letter of intent, take it easy. Go for agreements on the bigger problems at first, then get to the smaller issues later in the negotiations. It will be less stressful to negotiate and can also make it easier to come to terms on the smaller things as well.

You should acquire tour site checklists when you’re examining several properties. Certainly take down initial proposal responses, but don’t get into anything further without informing the property owners. Consider allowing it to slip out that you are also looking at other properties. Telling the property owner that he has competition for your money might inspire him to offer a better price to encourage you to buy from him.

As you are now aware, a number of factors must bear consideration in your commercial property hunt. Remember what you have learned in the preceding article, and you will be able to get a good deal on a piece of real estate that meets your needs.

Commercial Real Estate Can Be Profitable For You

Buying commercial real estate is nothing like buying personal real estate. Read on for a few suggestions and tips that could help you get a great deal.

Regardless of whether you are buying or selling the property, it is in your best interest to negotiate. Be heard and fight to get a fair property price.

Engaging in a commercial transaction often takes more time, and is more difficult than simply buying a home. However, all of this is required because it facilitates higher returns on your investments.

Double-check that you are seeking a realistic amount of money for your property. There are many things that can impact your value greatly.

Make sure that the commercial real estate you want to purchase is equipped with connections to all of the utilities you’ll need. Look for access to water, electricity, gas an a sewer or anything specific to what you intend to use this property for.

Less Affluent

When considering a piece of property, you must pay close attention to the surrounding area. In general, it’s better to locate a business in a richer area because rich customers obviously have more discretionary income. You might want to buy a property in a less affluent neighborhood if you are selling products or services that less affluent people would find attractive.

Lower the risk of default by eliminating as many things that can be labeled “event of default” as you can prior to negotiating a commercial property lease. This decreases the chances that the tenant will default on the lease. A default is frustrating and costly.

Pay for professional inspections of your commercial property before you put it on the market. 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.

You should advertise your commercial property as being for sale to people locally and those who are not local. Many sellers mistakenly presume that their property will appeal only to local buyers. A lot of investors buy property that is not where they want it if it is a good enough price.

Always include emergency maintenance on your list of need to know things. Find out from your landlord who to contact for emergency repairs, such as plumbing accidents. Keep a list of phone numbers close to you, and make sure you select companies that answer quickly. Consider how an emergency will affect your business operations, and have an emergency operating plan in place.

Representing Tenants

Commercial real estate agents specialize in working with different types of clients. Full service brokers work with both landlords and tenants and there are agents representing tenants only. If you intend to rent rather than buy, retaining the services of the latter type of broker may benefit you, as tenant-only brokers know what works when representing tenants.

By now, you realize that there are many things that need due consideration if you’re going on a commercial real estate shopping spree. Use the ideas in this article to inform you as to how to approach your next commercial real estate purchase.