Anyone looking to do well in commercial real estate can benefit from a collection of wise advice, and the following article will provide you with just that, whether you are just starting out or have experience in the field. With the advice below even a beginner can learn to do what it takes to become a pro in buying and then selling real estate for a good profit.
Whether you are buying or selling, don’t shy away from negotiation. See to it that your concerns are heard and all you want is a fair price when it comes to the property.
Pest Control
You should know what kind of pest control services are available to you when renting or leasing. 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.
Location is key in commercial real estate. You will want to focus on the actual neighborhood for starters. Look at the growth in similar areas. Since you will likely still own the property in ten years, you want it to be located in an area that is likewise still desirable in ten years.
Engaging in a commercial transaction often takes more time, and is more difficult than simply buying a home. The fact is that commercial real estate brings in a higher return, therefore the process must be more intense.
When choosing a broker, investigate their years of actual commercial market experience. Don’t use a broker who doesn’t specialize in the type of real estate investment you’re interested in. Also, consider entering into an agreement that will be exclusive between you and that broker.
If you plan on renting out your commercial properties, find simply and solidly constructed buildings. Tenants will be interested by buildings that look well-cared for. Tenants will also have to deal with maintenance issues less often, which means they have more time go about their business.
Check a commercial property for access to electricity and other utilities; make sure there is good access. You’ll need to have quick access to water, electricity, gas and the sewer.
Keep letters of intent simple by tackling large issues before sweating the small stuff. It will be less stressful to negotiate and can also make it easier to come to terms on the smaller things as well.
While searching through different properties, make a checklist of each tour you went on. Don’t go any further than 1st round proposal responses, unless you let the owners of the property know. You should not have any hangups about letting the owners know that you are still deciding on other properties. This may help you by creating a sense of urgency on the seller’s part.
It is essential to develop a list of emergency maintenance service providers. Speak with the landlord about handling of emergency repairs just so you know who to call in that situation. Have their phone number handy and know how long it will take them to arrive in an emergency. Create an emergency plan and ensure everyone in your unit knows where to find it, how to follow it, and what it entails.
Hopefully with the tips that you just learned you can now feel more confident when it comes down to selling or buying commercial real estate. The tips here were collected with care, providing advice which is necessary for success in the field.