Tag Archives: commercial property

Get Some Solid Pointers In Commercial Real Estate Right Here

It is easier than it seems to be a success in commercial real estate. However, there are some things you need to know before you jump into the market. Read this article to find out more about common tricks and mistakes you should avoid to become a successful investor.

Examine socioeconomic conditions in the neighborhood you’re thinking of purchasing commercial real estate in. Pay special attention to the unemployment rate, and the average income level in your property’s neighborhood. Property that is located near a large business, a college, or a hospital has better resale value and will often sell easier.

Take digital photographs of the unit. Make certain your photos highlight specific defects such as carpet spots, wall holes and bathroom discolorations.

Pest Control

Whenever you are considering a commercial lease, you need to think about pest control. This is especially true when renting in an area that has a lot of bugs or rodents, so be sure to talk to the rental agent about some pest control policies.

Take note that commercial transactions take more time, they are complex and they take more involvement than home purchases are. If you want things made easier, you might want to change what you’re getting yourself into. Although commercial property purchases take longer you will normally receive a higher return on the investment.

You might have to spend a lot of time on your investment at first. 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. Don’t throw in the towel due to the massive hours needed. You will reap the rewards in the near future.

When choosing between two similar commercial properties, think large scale. Getting the financing you need is a difficult thing, regardless of the size of the property. Generally, this is similar to the principle of purchasing in bulk; if you purchase more units, you will end up getting a better price per unit.

You need to make sure that the price you are asking for your real estate is a realistic price. There are a lot of factors that determine the value of the lot.

If you desire commercial property for rental purposes, locate buildings that are simply yet solidly constructed. These units draw in the best tenants because they are higher in quality and have nicer appearances. This type of building also has the advantage of requiring less maintenance, an attractive feature for tenants and owners alike.

When advertising your available commercial property, do so locally, but also regionally and even nationally. Many people think that investors who don’t live in their city will have no interest in their property, but this is untrue. Many private investors are willing and able to purchase properties outside their immediate community if the price is right.

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The beginning of the article warned you that commercial real estate is nothing something you should go into without the proper information. This article should have given you the direction you need to search for new real estate.

How To Be Successful With Regards To Commercial Real Estate

You will find that there are many advantages to purchasing commercial real estate. At the same time, the choice to make this sort of investment must be your own, based on your own knowledge base. The more knowledgeable you are, the more profitable you can become. This article contains great tips to help you get started, or to add to the knowledge that you already have.

Don’t make any big real estate purchases until you’ve evaluated the unemployment rates, income levels, and expansion rates of the area. If the building is near certain specific buildings, including hospitals, universities, or large companies, you might be able to sell it faster and for more money.

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Location is just as important with commercial real estate as it is with residential properties. Take the neighborhood of the property into consideration. Compare its growth to similar areas. If you make an investment in real estate, it is in your best interest to ensure that your property is in an area that will still be growing in five to ten years.

There is much more time and work involved in purchasing a commercial property rather than a residential property. Yet the greater the risk and time, the greater the profit, so take this into consideration when you think about the type of investments you want to make in the future.

Find out more about net operating income. Having positive numbers is the only way to ensure success.

Learn to set realistic prices by observing the market. Market conditions can vary greatly; therefore, an appraisal may not be the best indicator of true market value.

If you rent commercial property, do what you can to keep occupancy high. If you have open spaces, then you are the person who will be paying for their upkeep and maintenance. If you discover that you have multiple properties that are unoccupied, you should attempt to ascertain the underlying reason. Further action may be required on your part to avoid scaring off potential tenants.

Ensure that you have reviewed your contracts before negotiating leases so that you minimize the chances of default. If you are thorough, you are less likely to experience a tenant default. Once a default happens, you’ll be in big trouble!

Have an understanding on what exactly it is you are looking for when it comes to commercial real estate. Take the time to outline what your needs may be, from number of rooms to types of spaces needed. This should include the appropriate number of washrooms based on people present.

Plan on doing some improvements to your new commercial space before you can inhabit it. In some cases, these may be minor changes, such as a new coat of paint for the walls or a new arrangement of furniture. Oftentimes, moving walls and other fixtures is required to redistribute the floorplan. Be sure to negotiate who is responsible for these changes ahead of time so that you do not have to pay for the full cost.

Contact Information

It’s critical to have emergency maintenance contact information very accessible. The landlord in the building where you have your office will be able to provide emergency repair contact information for you. Keep the contact numbers handy, and ask them in advance what their response time is. Your landlord should be able to provide you a list of emergency contacts so that you can map out a safe and well organized emergency plan, in case an emergency happens during normal business hours.

Different commercial brokers represent different parties. A full service broker works with both the tenants and the landlord. Some agents represent only the tenants. 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.

Just focus on one specific investment and narrow your time to that if you’re new to investing. You want to only choose one property type to give your undivided attention to. You want to be an ace investor in one property type rather than just OK at many different types.

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There are a lot of reasons someone invests in real estate and each one requires additional knowledge. By using the advice in this article, you may find great success in commercial real estate.

What You Should Know About Commercial Real Estate Before Investing Your Money

In most cases, commercial properties has a lot more potential for profits when compared to a residential property. Sometimes it can be difficult to find the best opportunities available. Here are some suggestions on how you can make the most sense pertaining to the different variables so you may make wise choices in dealing with commercial properties.

When entering the commercial real estate market, patience is perhaps your best ally. Don’t invest in a hurry. If you buy a property that doesn’t meet your needs, you’ll sorely regret it. It could be a year-long process before you begin to see investments in your market pay off.

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Whether you want to get into real estate or you’ve been into it for a while, visit some websites that will help you find out how to invest in commercial real estate. Learning is an ongoing process, and you can never know enough.

It is a far lengthier, and more complicated, process to purchase a commercial property than a residential one. However, all of this is required because it facilitates higher returns on your investments.

Your investment might be very time consuming at first. Finding a good opportunity, going through the transaction and making any necessary repairs to the property takes time. Even though this work takes time, don’t lose heart! You may need to spend some time researching before buying your commercial real estate purchase, but it will pay off in the end.

If your real estate deal includes inspections (and it always should), make sure to ask to see the credentials of all of the inspectors. Pay particular attention to the credentials of any pest-control experts because many of them are not licensed. Doing so, will help you avoid much larger problems after actually making the purchase.

Pay for professional inspections of your commercial property before you put it on the market. Repair any problems that the inspector finds immediately.

When you write your letters of intent, start off by dealing with the larger issues, then move on to the smaller ones later. You can make all your negotiations less tense, so you can agree on any of the smaller issues first.

If you are viewing more than one property, you may wish to create a checklist for each site. Accept responses to the initial proposals, but don’t go further than that unless you inform the property owners. There is nothing wrong with hinting that you have other properties in mind. This may provide you with more room for negotiation.

Establish your goals and needs before you start looking at properties. Write down everything you need in a commercial property, such as number of conference rooms, offices, restrooms and how much square footage.

One of the most important things you should be aware of is emergency maintenance. Speak with the landlord about handling of emergency repairs just so you know who to call in that situation. Know their phone numbers and also what their likely response time is going to be. Use the information from your landlord to prepare an emergency plan to protect your reputation and customer service for the times when your normal business flow is disrupted.

Dual Agency

Read the disclosures of the real estate agent you are planning to hire. Try to beware of dual agency. What this means is that your chosen agency has an interest in buying and selling the property. When dual agency happens the Realtor on behalf of both parties. You and the other party should both agree if dual agency is to be okay.

With what you learned, you should now know some good basics when it comes to investing in commercial real estate. The world of commercial real estate is always in flux, so it is important that you keep up on the latest information and be prepared to change your methods as the market changes. You will find yourself in a perfect spot, and have access to the best deals on the market.

What To Do When Your Tenant Is Not Paying For Their Commercial Real Estate

You can begin to learn how to go about selling and buying commercial real estate from the following collection of tips in this article. Below is a compilation of suggestions that will help anyone interested in a successful commercial real estate venture achieve their goals.

Make sure to negotiate whether you’re the seller or buyer. Make it clear that you wish to be heard and refuse to accept an unfair price.

Pest Control

Whether you want to rent or lease, you will have to deal with pest control. Talk about pest control with your agent if the area is known for rodents and bugs.

You may find that you spend a large amount of time at first on your investment. Good opportunities can be found if you look, and after you have made a purchase, the property may require repairs or remodeling. Don’t give up, this process will take time and you just need to be patient. You will reap the rewards of all your hard work.

When you’re trying to decide which broker you should work with, take their experience in commercial real estate into account. Look for brokers who specialize in the type of commercial property that you’re purchasing or selling. At that point, you might want to consider entering into an exclusive listing with that agent.

If you intend on putting your commercial property on the rental market, find a simple, but solidly constructed building. Because it is apparent that these types of structures have been kept in good condition, it greatly increases the chances that tenants will be quick to rent the space. Investing in good buildings will save you money on repairs later.

If you rent or lease the commercial properties you own, keep them occupied as much as possible. Maintenance and upkeep costs for commercial property can be substantial and rental income is essential for paying those costs. Figure out why you have spaces that are consistently open. In some cases, you might need to do some problem-solving so that tenants will want to rent these spaces.

Make sure that the commercial property has access to all utilities needed. The utilities you will need for your business go beyond electricity; you will also need water, sewer and gas, as well.

The hints and tips that were given to you in this article should have provided you with the knowledge to get a successful start on your venture into the purchase or sale of commercial property. Use what you have learned, and you will be able to navigate the complex world of commercial real estate with ease.

Real Estate Tips You Can’t Afford To Miss

Even though there are many commercial properties listed every day, you will not see them in the preferential listings, as you would homes. 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.

Whether buying or selling, negotiate. Make certain that your voice is heard, and do what it takes to find a fair property price.

Before you make a large investment in real estate, take a look at local income levels, unemployment rates and the expansion or contraction of local employers. Your house will sell more quickly and at a higher value if it is near a university, hospital or any large employment center.

Take digital pictures of the place. Try to make sure that your pictures shows the defects.

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Be patient and calm while you navigate purchasing commercial real estate. Do not rush into making quick real estate decisions. If the property doesn’t suit you in the end, you may regret your hastiness. Stay patient; it could take a year or more for the perfect property to materialize.

If you are renting or leasing, pest control is important to look at. Talk about pest control with your agent if the area is known for rodents and bugs.

There are many things to consider when determining the best option between two commercial properties. When choosing between the two, think big! Acquiring enough money to finance a 10 or 20 unit apartment complex can be huge undertaking. However, buying several units will cause the price of an individual unit to decrease.

If you intend on putting your commercial property on the rental market, find a simple, but solidly constructed building. Because it is apparent that these types of structures have been kept in good condition, it greatly increases the chances that tenants will be quick to rent the space. This type of building also has the advantage of requiring less maintenance, an attractive feature for tenants and owners alike.

You should carefully consider the neighborhood in which you purchase commercial real estate. If you buy property in a very affluent area, your business will likely be successful, because your clientele will be better able to afford what you are selling. Yet, if you have a business that might thrive in a neighborhood where the not so well-off would opt to go to your business, then maybe that kind of neighborhood is for you.

Prior to negotiating with the lease of your commercial real estate, try to decrease anything that could be a default as you can. If you cover all the applicable issues, then you make it far less likely that potential tenants will default on their lease. Once a default happens, you’ll be in big trouble!

If you are considering more than one property, be sure to obtain a checklist for the tour site. Make sure to advise the property owners when you want to take the next step past the first proposal responses. You should not have any hangups about letting the owners know that you are still deciding on other properties. It can also get you a great deal on the property you’re touring!

Finding the right piece of commercial property is just the start. When you have the information you need, decisions are much easier to make.

Discover Commerical Real Estate Tips You Don’t Want To Miss!

It’s harder to find commercial properties. Although there are plenty of commercial investments in the market, these buildings don’t get preferential listings in classified ads or real estate catalogs as do residential listings. A certain level of knowledge is required to locate profitable commercial properties. This knowledge, along with other things, is necessary in order to be successful. In this article, you will find valuable tips that can help you succeed in commercial real estate.

Always remain calm and patient when dealing with the commercial real estate market. Do not rush into making quick real estate decisions. If you buy a property that doesn’t meet your needs, you’ll sorely regret it. Be patient, as it could take as long as a year for just the right investment property to turn up.

Pest Control

Before you sign a lease, find out about pest control. Especially when you rent in an area known to be infested by bugs or rodents, ask your rental agent about pest control policies.

Location is the most important factor in choosing a commercial property to buy. Consider how the neighborhood will affect business. Also, keep growth in mind. Do not buy a property that is located in a neighborhood likely to take a wrong turn in the next five years.

Find out more about net operating income. To be a success, you need to be able to stay on the positive number side.

Make sure that the commercial property has access to all utilities needed. In addition to any needs specific to the business, you will surely need to have gas, electricity, sewer and water services, and so on.

Do a walk-through and close evaluation of each property you are considering. It’s a good idea to hire a building contractor to come with you and do on-the-spot inspections of properties you are considering. Once you have all the details, start drafting proposals and enter negotiations with the seller. Before making any sort of decision after a counter offer, evaluate it once and then evaluate it again.

It is essential to develop a list of emergency maintenance service providers. Be sure to find out who takes care of maintenance in the building and also who handles emergency repair situations. Have their phone number handy and know how long it will take them to arrive in an emergency. In case a maintenance emergency should happen, you can use the information provided to lay out an emergency business and customer service plan to save your company’s reputation in case your business is interrupted.

There are a variety of types of real estate brokers who deal in commercial properties. A full service broker works with both the tenants and the landlord. Some agents represent only the tenants. You reap better benefits if you hire an experienced tenant broker because the broker will ensure that you receive the best deal possible.

There are many thing that need to be taken into consideration when purchasing a piece of commercial property, location is just the beginning. Arming yourself with some good information makes the whole real estate process so much easier.

Ways To Tell You Need More Office Space

Getting involved in commercial real estate transactions is sometimes overwhelming, and both beginners and veterans will find it stressful at times. The following article will enable you to make informed decisions about commercial real estate, from the very beginning to end.

Take digital pictures of the place. Ensure that the photos document any problems, including mold, damaged walls, or chipped fixtures.

Calm and patience are both sound practices when you are searching for commercial property. Don’t make any hasty investment decisions. Without due consideration, you might find that the real estate purchase does not meet your criteria for successful financial gain. Realize that it can sometimes take at least one year for the proper investment opportunity to present itself.

Pest Control

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

If you are trying to choose between two good commercial properties, think big. Finding the right bank to finance you might be hard, even if you are going for a smaller building. Generally, this is much like the principle of buying in bulk; the more units you buy, the lower the price per unit.

Make sure that the advertisements for your commercial real estate reach both local and non-local audiences. There are a lot of people who make the big mistake who think that only local people want to purchase their property. In many cases, a private investor will be interested in a property even if it’s not in their area, so long as its price is a good one.

Your new space may need improvements before you can occupy it. For example, you might neat to repaint or purchase new furniture. The renovation project can get larger and could consist of knocking down, moving or building walls to make the floor plan usable. Talk to your landlord about these improvements. Try to negotiate a deal where the landlord pays for some, if not all, of the cost of improving your space prior to moving in.

Emergency Maintenance

One of the most important things you should be aware of is emergency maintenance. Ask your landlord who is in charge emergency maintenance requests for the building. Know the phone numbers, and be aware of their response time. Consider how an emergency will affect your business operations, and have an emergency operating plan in place.

The borrower of a commercial loan is the one that orders the appraisal. If someone else orders an appraisal for you, the bank may not accept that appraisal. Order the appraisal yourself to avoid a headache.

Consider any tax deductions you might get from your commercial real estate investment. For example, commercial real estate investments garner you deductions for interest on top of your benefits for depreciation. However, you also need to be aware of a potential tax problem: income that you have to pay taxes on even though you never actually receive it. You have to keep all of this in mind before you start to invest in real estate.

Finding and buying a commercial property can be a hassle no matter how many times someone has done it before. Apply the advice from this article to help make your search for that perfect piece of commercial property a little less stressful, and a lot more enjoyable.

No-Sweat Tips For Commercial Real Estate Success

Investing in commercial properties is not the same game as home buying. The following advice will help you get the best deal on your property.

Bring your digital camera along, and use it. 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.

Commercial real estate involves more complex and longer transactions than buying a home. The duration and intensity is necessary if your investment is to yield a high return.

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When you are picking a broker, make sure you know if they are experienced within the commercial real estate market. Don’t use a broker who doesn’t specialize in the type of real estate investment you’re interested in. You should be sure to enter into an exclusive agreement with that broker.

If you desire commercial property for rental purposes, locate buildings that are simply yet solidly constructed. A well-built building will attract tenants quickly because tenants want a property that is solid. They are also easier to keep in good repair and require less repairs, which will save you and your tenants money over time.

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. 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.

Tour any properties you are considering for purchase. Look into having a professional contractor accompany you as you take a look at the properties you’ve been thinking about purchasing. Make a proposal early, and get into the beginning stages of negotiation. Before you decide whether you want to accept an offer or not, be sure to carefully evaluate all counteroffers.

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. This lets you get the bigger issues out of the way first and makes small issues simpler to complete.

Before you begin seeking commercial real estate property, be sure to identify your requirements. Write down what features are most important to you when you look a piece of property, like the square footage, the number of offices and conference rooms, and bathrooms.

It’s critical to have emergency maintenance contact information very accessible. Talk to the building’s landlord about the person who currently handles emergency repairs. Know the phone numbers, and be aware of their response time. Create an emergency plan and ensure everyone in your unit knows where to find it, how to follow it, and what it entails.

To ensure that you receive quality service when searching for commercial property, find a company which cares for their customers. If you don’t do this, you might get taken advantage of or wind up paying much more money over time.

Don’t choose a real estate broker until you learn about his or her preferred negotiation techniques. Much like you would interview a prospective employee, question their experience and training. Also be certain that they are ethical when conducting business, and good at what they do. Go ahead and ask them for examples of any past negotiations, including those that were successful and those that were failures.

Think about the environment around your property. It’s up to you to clean up any damage or environmental waste associated with your property. Are you considering a purchase of property in an area that is prone to flooding? Make sure you think it over! There are environmental assessment organizations who can provide information about a specific area if you contact them.

Always think ahead when considering a real estate investment. Every property is eventually going to need maintenance and repairs, and you need to consider what potential properties are going to cost you over the duration of your use. It may need a more updated electrical system, or a new roof. All buildings have these kinds of requirements, depending on the specific building, some may require more repairs than others. Be sure you have a long-term plan to handle these kinds of repairs.

As you have read, there is much to ponder, when evaluating commercial real estate. Embrace this article’s advice to ease the process of finding your business’s future home.

Commercial Real Estate Can Be Fun And Lucrative. Learn How To Get Started Here.

Dealing with commercial real estate is definitely exciting; however, it is usually a massive endeavor with many aspects that have to be approached properly. This can leave you wondering where you should even begin. There’s certainly a lot you need to learn before you get involved in commercial real estate, but this article will familiarize you with the basics.

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.

You should thoroughly look into the brokers that you are considering, and determine their level of expertise and experience when dealing with commercial real estate. 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. With that broker, you also want to enter into exclusive agreements.

Even though you may be running a business and ultimately need to secure profits, it’s important that you don’t embellish prices in an attempt to get an extra dollar. There are a lot of factors that determine the value of the lot.

If you desire commercial property for rental purposes, locate buildings that are simply yet solidly constructed. These units draw in the best tenants because they are higher in quality and have nicer appearances. These properties are also more cost effective for you and your tenants due to the fact that they only require minimal upkeep and repairs.

Always keep tenants, otherwise, your commercial property will end up costing you money instead of making you money. If you have an unoccupied property, you will be the person paying for the maintenance and upkeep. If you have lost several tenants or can’t seem to attract them in the first place, there must be a reason. It is your job to figure out the problem and correct it.

Before making a commitment, you should request tours of any potential properties. Consider going with a contractor when you are looking at places you want to buy. 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.

Plan on doing some improvements to your new commercial space before you can inhabit it. The space may be due for some regular maintenance, or it may need something as simple as a new coat of paint. The change could be significant like moving an entire wall to work with a new floor plan. Negotiate payment for these improvements ahead of time, and attempt to have the landlord pay at least part of the costs.

See to it that you’re dealing with companies that care about their customers before you engage them in a commercial purchase. Otherwise, you could end up having costly, but avoidable, consequences from your deal.

Look at any environmental impacts or prior EPA issues with the property. If there are problems with environmental waste, remember that you will be responsible for any necessary cleanup. Are you aware of whether or not the property is located on a flood plain? Be sure to consider this issue very carefully. Talk to an environmental assessment agency to learn more about the area where the property is located.

Clearly, owning and purchasing commercial property takes work, effort and research so that your experience is as favorable as possible. You will also need to stick with it and not give up. Applying the useful advice of this article, you should be well prepared for a successful endeavor in commercial real estate.

Learn About Commercial Real Estate

If you want to invest in commercial property, there are a lot of good reasons to do so. Make sure, however, that your decision is based on sound reasoning and a solid understanding of the market. The more you find out, the more money you can make through commercial real estate. These tips are a great source for learning more about commercial real estate investing.

Regardless of which side of the negotiations you’re on, learn to haggle. Both the buyer and seller should attempt to negotiate a fair price rather than accepting the other’s first offer. See to it that your concerns are heard and all you want is a fair price when it comes to the property.

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Be patient and calm while you navigate purchasing commercial real estate. Do not be hasty about making a investment decision. Without due consideration, you might find that the real estate purchase does not meet your criteria for successful financial gain. It could take some months, possibly a year, for your dream investment to appear in the market.

Before you consider leasing or renting, look into whether or not pest control is covered in the lease. Especially when you rent in an area known to be infested by bugs or rodents, ask your rental agent about pest control policies.

You should expect your commercial real estate investment to require a significant time commitment. Finding a good opportunity, going through the transaction and making any necessary repairs to the property takes time. You should know what to expect and not give up. Stick with it and you’ll be rewarded.

Educate yourself about the measurements of NOI: Net Operating Income. As long as you get positive numbers, you will be successful.

Make sure your asking price is realistic. Market conditions can vary greatly; therefore, an appraisal may not be the best indicator of true market value.

When you are shopping for a commercial property, be sure to confirm that you will have access to utilities. Your particular business might need additional services, such as cable, but at the minimum there should probably be sewer, water, phone, electric and gas.

Be sure to have a professional building inspector go through your property before you put it up for sale. If they do find anything amiss, get it fixed immediately.

Potential Properties

Go on a tour of all potential properties. Definitely consider having a professional contractor go with you when looking at potential properties. Open negotiations after making your offer. Before you decide whether you want to accept an offer or not, be sure to carefully evaluate all counteroffers.

When drawing up a letter of intent, try to solicit agreement on big issues first and leave smaller issues for later rounds of negotiations. This will make the negotiations faster and less tense, and it will also cause the lesser issues to be completed easier.

There are a myriad of reasons to expand your monetary investments into commercial real estate. All it takes is determination, and a good base of information. Use these pointers and you will increase your chance at maximizing your investment.