There are always industrial and commercial properties, but these types of properties do not receive preferential listings that are given to residential property. This market requires a different set of skills in order to be successful, and with the following tips, you will be able to navigate it properly.
You should expect your commercial real estate investment to require a significant time commitment. It takes time to find a lucrative opportunity and purchase a propriety, adding to that time to carry out any repairs and alterations that are needed. Do not give up because this process takes too much of your time. Once you get the property ready, you will be compensated for years to come.
Double-check that you are seeking a realistic amount of money for your property. Market conditions can vary greatly; therefore, an appraisal may not be the best indicator of true market value.
Make sure that the commercial property has access to all utilities needed. You will need access to electricity, water, sewer and maybe gas in addition to any unique need that your business has.
When you are looking at a commercial property, be sure to look at the neighborhood, too. 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. On the other hand, if you are going to offer a product or service more popular with working class individuals, a less affluent neighborhood might be a better choice.
If you are thinking of selling a commercial property, your experience will be much smoother if you utilize the services of a professional and have it properly inspected. Fix all problems that they find as soon as possible.
Take a tour of properties you are considering. Definitely consider having a professional contractor go with you when looking at potential properties. You can then make an initial offer and begin the bargaining phase. Evaluate counteroffers against the information you collected on your tours, and use that information to justify your own counteroffers.
Get a site checklist if you are viewing more than one property. After you collect your first proposals from all the property owners, let them all know that you’re looking at other properties before you make your decision. Don’t be shy about telling the owners that you are thinking about purchasing another property. This could help you score a better deal.
Dual Agency
Before hiring any real estate broker, read all of his disclosures. Dual agency is a possibility that you need to be aware of. Dual agency refers to a situation in which a real estate agent represents both the landlord and the tenant in a commercial transaction. The real estate agency will represent both the seller and the buyer. If there is a dual agency, everyone should be honest about it and find an agreement.
The borrower needs to order an appraisal for a commercial loan. Your bank will refuse the appraisal if you try to submit it. Be properly prepared by ordering the appraisal directly.
Speak to a tax adviser prior to buying a property. A tax adviser can tell you what your tax liabilities are on the purchase and future income from it. Work closely with your lawyer to find a place where you can buy property and your taxes will cost less.
Finding the appropriate kind of commercial property is only the first half of your work here. Gaining even a little bit of knowledge about commercial real estate helps you make better decisions.