So, you have made the decision and are now ready to get into commercial real estate? You may have many questions about it, but there is no need to worry because this article has helpful information for you. Listed below are some tips that will help you get started with your commercial real estate endeavors.
Take digital photographs of the unit. Your pictures should portray any damage or defect in the property. Common things you should look for include any cracks or holes in walls, and damages to the carpeting.
Location, location, location is important to consider. When investing in a property, consider what type of neighborhood it is located in. Check out the growth, both economically and physically, in the areas you’re considering. This is important, as you don’t want to be in a current growth area only to have the neighborhood stagnate in a few years.
Make sure that the broker you decide to work with has experience in the commercial market. Make sure that they are experts in the area in which you are selling or buying. At that point, you might want to consider entering into an exclusive listing with that agent.
It is important to learn and understand a metric used in commercial real estate investment called NOI or Net Operating Income. Having positive numbers is the only way to ensure success.
Ensure that the amount of money you want for your commercial property makes sense, given local market conditions. There are a variety of different factors that go into determining a property’s value.
If you put the commercial property up for sale, have it inspected. If there is anything wrong with your property, have it fixed right away.
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. 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.
It is essential to develop a list of emergency maintenance service providers. Make sure to consult your landlord about emergency repair responsibilities in your building or office. Keep the phone numbers in a convenient place, and know how long it will take them to respond if needed. Create an emergency plan using your landlord’s information so that you can protect customer service and your reputation in case of a disruption to your usual business.
Tax Adviser
Before making a real estate purchase, sit down and talk with your tax adviser. The tax adviser will explain information about the overall costs of the buildings, and can elaborate more about how taxes will affect your income. By taking your adviser’s advice, you may be able to find a location where the taxes are less.
Now, that you’ve read this article, you should feel much better equipped to enter the commercial real estate market. You might have thought you had enough knowledge to get started before reading this article; now you should be even more prepared. Hopefully, the advice in this article will help you begin your adventure in commercial real estate in the direction of success.