Commercial real estate is an entirely different ball game than residential property. The following tips will assist you in making the best commercial real estate purchases.

Pest control is an important issue to look at when you rent or lease. Talk about pest control with your agent if the area is known for rodents and bugs.

When you are picking between commercial properties, think big! Getting the proper financing is going to the same hassle for a retail building with ten outlets as it would be for a retail property with twenty or even thirty units. Generally, this is much like the principle of buying in bulk; the more units you buy, the lower the price per unit.

As you comb through possible brokers, search for those who have extensive experience in commercial markets. Make sure that the agent has the proper expertise with the type of real estate purchase or sale you are looking for. You need to get into a type of exclusive agreement with your broker.

When having your real estate inspected (as you should), always ask for the qualifications of the inspectors. 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 keep you from having bigger headaches after the sale.

Commercial rental buildings should feature sturdy construction and simple details. These will attract potential tenants quickly because they know that these properties are well-cared for. In addition, these properties are low maintenance because they don’t frequently need repairs, a benefit to the owners, as well as the tenants.

Phantom Income

If you plan on investing in commercial real estate, you should consider the tax benefits you will receive. In addition to depreciation benefits, many investors enjoy tax deductions for interest expenses. However, investors sometimes get “phantom income”, this is a type of income which is taxed but it isn’t received as cash. Learn about phantom income and taxes on commercial income before you invest in your first property.

Know what to expect from your realtor by asking them questions about successes and failures. Your broker should be able to explain what standard they use to measure results. You need to be able to comprehend their strategies and methods. You should only employ a real estate agent if you are okay with their business practices.

Don’t choose a real estate broker until you learn about his or her preferred negotiation techniques. Find out about their experience and training. In addition, you should ensure that the methods they employ are ethical and that they know how to go about obtaining the best deals. Request additional information or examples of the results from previous negotiations.

To determine how honest a real estate broker is, you might consider inquiring about their financial performance. An honest broker, of course, will be open to discussing how their money was made. Find out how your broker will benefit form the transaction you want them to work on for you.

Make certain to only put your focus on a single investment at any given time. For example, you may choose to work mostly with apartment complexes, strip malls, undeveloped land or restaurants. Your undivided attention will be need to maintain each of these types of property. Pouring all of your focus into a single niche of real estate allows you the opportunity to become a master of a single trade, rather than a “jack of many”.

Real Estate

As you have read, there is much to ponder, when evaluating commercial real estate. 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.