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How To Be Successful In Real Estate

There are a lot of reasons many people invest in the world of 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 educated you are, the more earning potential you have. The tips below are a great start for finding out more information on commercial real estate or just add to what you may already know.

Take digital pictures of the place. Make sure the picture shows the defects (such as spots on the carpet, holes on the wall or discoloration on the sink or bathtub).

Be prepared to put a large amount of time into a real estate investment right from the start. Good opportunities can be found if you look, and after you have made a purchase, the property may require repairs or remodeling. Do not become discouraged due to the time-consuming nature of this process. Stick with it and you’ll be rewarded.

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. Make sure that they are experts in the area in which you are selling or buying. Once you’ve determined the broker is right for your needs, make sure any agreement into which you enter is an exclusive one.

Have a professional do an inspection of your commercial property prior to you listing it as available on the market. Have any issue that the inspector finds repaired right away.

When selling commercial property, advertise locally and outside of your region. It is a mistake to think that only people in the immediate area will have an interest in your property. In fact, the interest level can expand far beyond the local scene as private investors expand their interest. These investors are searching for affordable property and may be interested in yours.

Tour any properties you are considering for purchase. Consider going with a contractor when you are looking at places you want to buy. Once you have all the details, start drafting proposals and enter negotiations with the seller. Make sure you evaluate any counteroffers well enough before you make any purchasing decisions.

Keep the smaller issuer for later on in your negotiations and the larger ones first, when you write a letter of intent. This will make negotiations less tense and make gaining agreement on the smaller issues easier to complete.

When viewing multiple properties, be sure to get a checklist from the tour site. Take initial personal responses, but don’t go further without the property owner knowing. You may want to offhandedly let the owners know that theirs is only one of a few properties in which you are currently interested. This may provide you with more room for negotiation.

Before you can start using the property you’ve purchased, you might need to make some improvements. For example, you might neat to repaint or purchase new furniture. You may even need to tear a wall down to make the floor plan fit your needs. Before buying the property, see if you can get the former owner to pay for some of these costs. If you’re renting, the landlord might chip in.

Dual Agency

Carefully peruse the disclosure statements issued by the real estate agency you intend to hire. One thing you should specifically watch out for is dual agency. In this case, the agent is two-faced: she is representing both parties to the transaction. This means the agency works for the tenant and the landlord at the same time. An agent should always disclose dual agency, and it must be acceptable to both parties.

In conclusion, commercial real estate investing is worthy of consideration for multiple reasons, and they all have their own subtleties and complexities. The tactics presented here provide a groundwork of information that you can use to break into the commercial real estate investing scene.

You Need To Use A Qualified Property Broker When Buying Commercial Real Estate

You will find that there are many advantages to purchasing commercial real estate. Nonetheless, it is important for you to remember your own limitations and abilities before jumping into the game. Knowledge is power, and increasing your knowledge about commercial real estate investing will help you maximize your profits. Below, you’ll find some great tips to help you start your commercial real estate career, or to add to your already wide breadth of knowledge.

Take digital photographs of the unit. Each photograph should clearly depict the point of contention, whether that happens to be a stain, hole or other problem.

Find websites which contain expert information on commercial real estate and use the information to your own advantage. You can’t be too informed about the subject, so try to always be seeking out new sources of knowledge.

There is much more time and work involved in purchasing a commercial property rather than a residential property. Remember that the time and efforts you are investing will pay off.

Once you have narrowed your choices down to two major contenders, you should expand your decision to include the big picture. It’s just as difficult to obtain adequate financing for a 10 unit apartment complex as it is for a 20 unit building. Generally, this is the same situation as if you were buying something in bulk, the more you buy the cheaper the price of each unit.

When starting out in commercial real estate, it is important you understand the measurement labeled Net Operating Income, or NOI for short. For the investment to be profitable, it has to produce more income than operating expenses.

Make sure the property you are interested in has access to utilities. Every business has unique requirements, but for most, electric, water and sewer access will be required.

When buying commercial property, think about the socioeconomic status of the neighborhood around the building. Your business might do better in affluent communities, since your prospective foot traffic has more money. If the business you run caters to a lower-income demographic, buy in an area that fits your clientele best.

Smaller Issues

When you are constructing a letter of intent, make sure that you keep it concise by focusing on larger issues first. Save the smaller issues for future negotiations. The initial negotiations will be less tense and the smaller issues will seem less important later.

If you are checking out more than one property, draw up a checklist to compare the features of the different properties. 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. Do not be afraid to let it slip to the owners that there are other properties that you are considering. It could help you get a better deal.

The new space you purchase might need some upgrades and repairs prior to occupation. The space may be due for some regular maintenance, or it may need something as simple as a new coat of paint. The renovation project can get larger and could consist of knocking down, moving or building walls to make the floor plan usable. If you’re leasing or renting, you can ask the landlord to make these changes at no cost to yourself.

Carefully peruse the disclosure statements issued by the real estate agency you intend to hire. Understand the meaning of dual agency. When dual agency exists, the agency advocates for both parties in the transaction. In simpler terms, both the landlord and the tenant are simultaneously represented by the agency. You and the other party should both agree if dual agency is to be okay.

As previously stated, there are various reasons to go into investing commercial real estate, but you need a lot of extra knowledge on the subject. Just put the strategies you just learned into practice, and your yearly returns will climb into the double digits surprisingly quickly.

Points To Ponder When Considering Commercial Real Estate Transactions

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. You will need to do research and search the market in order to locate them, as well as utilize the tips provided by this article.

Regardless of whether you are buying or selling the property, it is in your best interest to negotiate. Ensure that your voice is heard, and that you are offering-or receiving-a price that is fair for both parties.

Bring your digital camera along, and use it. Make certain your photos highlight specific defects such as carpet spots, wall holes and bathroom discolorations.

Location, location, location is important to consider. Think about the neighborhood your property is located in. You also want to look for a neighborhood that is solid and growing. This research will help you figure out how the neighborhood you’re considering buying commercial property in is likely to grow and change over the next several years. If you aren’t comfortable with the potential growth rate or the atmosphere of the neighborhood, purchase property elsewhere.

Commercial Real Estate

Make sure that the commercial real estate you want to purchase is equipped with connections to all of the utilities you’ll need. The property must have access to electric, water, sewer and maybe gas for it to be a viable commercial real estate purchase.

You should carefully consider the neighborhood in which you purchase commercial real estate. Expensive, luxury-oriented businesses will thrive in more affluent neighborhoods. Bargain-oriented goods and services will find a more receptive market in lower- to middle-class areas.

Have a professional inspector look at your property before selling it. Repair any problems that the inspector finds immediately.

Make sure you know exactly what requirements you need to satisfy before you begin your search for commercial real estate. You should write a list of which features are most important to you. For example, do you need a specific number of restrooms, a specific amount of square footage, or a conference room?

It is important to know how to deal with emergency maintenance. Speak with the landlord about handling of emergency repairs just so you know who to call in that situation. Know the phone numbers, and be aware of their response time. 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.

You can find different kinds of brokers. For example, some brokers represent landlords as well as tenants, while others only work with tenants. It might be more beneficial to hire a broker who works only with tenants, as he has more experience working with those searching for a property.

Dual Agency

Check all disclosures of the chosen real estate agent that you wish to work with. Never neglect the fact that you may be dealing with a “dual agency.” In a dual agency the Realtor represents both parties of the transaction. Dual agency occurs when the landlord and the tenant hire the same agent. Dual agencies require full disclosure and must be agreed upon by both parties.

In a commercial loan, the borrower must order the appraisal. The bank won’t permit your use of it at a later date. Cover yourself and your interests by ordering it yourself.

If you want to invest in a piece of commercial real estate, think about the kind of tax breaks and benefits you might receive. Investors receive interest deductions on top of depreciation benefits. Phantom income also exists: this type of income does not cover cash benefits but is taxed. It is important to know about this kind of income prior to investing.

Before you attempt to become active in the market, you must first establish an online presence. You should really consider making a LinkedIn profile or something similar as well as create a website. Optimize your website for search engines so that you can get a good rank high on the results page. Eventually, you want people to be able to find your site by putting in keywords related to your business, or even your name.

If you think finding the perfect property is the main hurdle to surmount, you’re wrong. Remember, a little knowledge can really help.

Making The Most Of Your Commercial Real Estate

Many people have become successful in commercial real estate. There isn’t a super, secret recipe for success. What is needed is understanding of the industry, a good amount of hard work and experience. This article has much advice on beginning a career in commercial real estate.

Use your digital camera to take photographs of every room from all angles. Make sure the picture shows the defects (such as spots on the carpet, holes on the wall or discoloration on the sink or bathtub).

When deciding between two viable commercial properties, it is best to think on a larger scale. Acquiring enough money to finance a 10 or 20 unit apartment complex can be huge undertaking. In effect, this is similar to an economy of scale, or also like purchasing more of an item to save money.

Before buying a commercial property, research its net operating income to make sure you don’t lose money. As long as you get positive numbers, you will be successful.

Inspectors should always have credentials available for viewing, should you require their services in your real estate dealings. Pay particular attention to the credentials of any pest-control experts because many of them are not licensed. This can prevent larger problems from occurring after the sale.

Try to decrease potential events of defaults before negotiating a lease. This decreases the chances that the tenant will default on the lease. You don’t need this to happen.

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.

Advertise your property for sale locally and outside your region. There are a lot of people who make the big mistake who think that only local people want to purchase their property. Many private investors are interested in cheap or affordable properties in other areas of the country or world.

You need to know the details of emergency maintenance procedures. Ask in advance who will be handling any emergencies that arise. Keep the phone numbers in a convenient place, and know how long it will take them to respond if needed. Create an emergency plan and ensure everyone in your unit knows where to find it, how to follow it, and what it entails.

Dual Agency

When hiring a real estate agent, read the disclosures completely before signing a contract with a realtor. One thing you should specifically watch out for is dual agency. In a dual agency the Realtor represents both parties of the transaction. This will mean that the agency will work with the landlord and tenant simultaneously. You and the other party should both agree if dual agency is to be okay.

Enter the world of commercial real estate with the right frame of mind, and you can find success. Keep the suggestions we have presented in mind and be sure to use them in your business. Stay hungry for new information and ideas to keep your business strong. You will become more and more successful as you gain experience.

Should You Invest In Commercial Real Estate?

There are both positive and negative aspects of commercial real estate. You can earn a lot of money through real estate investments, but you can also lose your investment and end up in a worse position than you started in. You not only need to choose your properties wisely, but also your funding sources. This article will help you get the most from your real estate investment.

Be calm and patient when looking at commercial real estate. Do not go into an investment out of haste. You may soon regret it when the property does not fulfill your goals. It could take you twelve months or longer to get the deal that fits you perfectly.

When making decisions between one commercial property and another, think big. Financing may be no more difficult for the large apartment building than the small one. In effect, this is similar to an economy of scale, or also like purchasing more of an item to save money.

Choose simple, strongly constructed buildings if your plan is to purchase real estate for the sole purpose of renting or leasing it. Tenants will be attracted to these spots because they are maintained well. In addition, these properties are low maintenance because they don’t frequently need repairs, a benefit to the owners, as well as the tenants.

If you are considering leasing a property to someone else, then cover all your bases to reduce the risk of a default. If you cover all the applicable issues, then you make it far less likely that potential tenants will default on their lease. You want to ensure this doesn’t happen at all costs.

Check into having an inspector look through your property before you put that property back on the market. Any problems or necessary repair identified by a professional inspector should be addressed and fixed as soon as possible.

Do a walk-through of each property on your short list. It may be a good idea to take a professional contractor with you when you check out properties you are interested in purchasing. You can then make an initial offer and begin the bargaining phase. Before making any commitment, you should carefully evaluate each offer and counteroffer.

Put a high priority on emergency maintenance needs. Speak with the landlord about handling of emergency repairs just so you know who to call in that situation. Know the phone numbers, and be aware of their response time. Make an emergency plan once you have this information. If a flood, fire or break-in interrupts your normal business day, you need to have a plan in place so that you can re-open as soon as possible.

Dual Agency

Read the disclosures of the real estate agent you are planning to hire. Remember that dual agency is also an option. If so, the agent will represent both sides. In other words, the agent is representing both you and your landlord in the same transaction. Whenever dual agency is part of a transaction, it must be disclosed to both parties of the transaction. Both sides must also agree to the dual agency.

As previously noted, the business of commercial real estate can be challenging to succeed in. It takes a lot of time and effort–not to mention a sizable down payment–to succeed in the commercial real estate market. Even doing that, you may still lose money.

Tips For Successful Sales And Purchases In The Commercial Real Estate Market

You must research and stay patient in order to be successful at investing in commercial property. The following article will outline essential knowledge for you to propel your real estate venture to new heights, where you can enjoy a lucrative and interesting career shift.

Be sure to negotiate on the fact of what you are, the seller or buyer. Make sure that you are heard and that you fight for a fair price for the property.

An essential fundamental of commercial property is location, location, location. You will want to focus on the actual neighborhood for starters. You also want to look for a neighborhood that is solid and growing. The ideal location is situated in an area that can sustain economic growth for many years to come.

Commercial transactions are more complex, involved, and time-consuming than actually buying a home. You should understand that although this is a huge undertaking, when all is said and done you will receive a big return on the investment.

Ask any potential broker about what experience they have had with commercial property before choosing someone to represent your interests. Look for brokers who specialize in commercial real estate. You should be sure to enter into an exclusive agreement with that broker.

Always check the credentials of the inspectors you hire. Those who work in pest removal should be inspected closely, as they are often not accredited. Ultimately, this can help you to bypass larger, more expensive problems.

Check into having an inspector look through your property before you put that property back on the market. If the inspections turn up any problems, remediate them before listing the property for sale.

When drawing up a letter of intent, try to solicit agreement on big issues first and leave smaller issues for later rounds of negotiations. Doing it this way will allow the negotiations to be less intense and get them to agree faster.

Emergency maintenance should always be on your need to know list. Talk to the landlord about who does emergency repairs for your building or office. Be sure to have emergency numbers on hand, and remember to check about a quoted response time for maintenance emergencies. Work with your landlord to create a contingency plan in the event that an unforeseen disaster occurs; this will allow you to avoid customer service or public relations nightmares.

Commercial real estate agents come in different types. Some agents will represent only the tenant while a full service broker will represent both parties. You reap better benefits if you hire an experienced tenant broker because the broker will ensure that you receive the best deal possible.

Dual Agency

Scrutinize any disclosures made by a real estate agent whom you intend to hire. Make sure you understand the potential for the existence of dual agency. What this means is that your chosen agency has an interest in buying and selling the property. Dual agency occurs when the landlord and the tenant hire the same agent. If dual agency is the case, it should be out in the open and both the landlord and the tenant should be in agreement with the arrangement.

If you have understood and apply the advice you just read about, you will be on your way to a successful start in commercial real estate investing. Using this article’s advice, you can experience all of the great opportunities in commercial real estate.

Tips And Advice About The Commercial Real Estate Market

Commercial property is not something to go into half-cocked. While it does bring massive profits to those who succeed at it, even experts can find themselves in a situation where they lose it all. Try to choose wisely when considering purchasing a property, and thinking about how to fund it. This article will carefully guide you through the real estate process.

You must be patient to succeed as a real estate investor. Make decisions calmly and slowly–don’t be in a rush to buy a piece of property. Don’t invest in a hurry. You’ll regret it quickly if your lack of research results in a property without much re-sale value. Realistically, it can take upwards of a year to find the right investment in your local market.

Real Estate

Search online for websites that provide information about real estate investments. These general interest websites can provide you with useful information whether you’re new to the world of real estate investment or have made a career out of investing. No one can ever honestly claim that they know too much.

As with other property purchases, pay attention to the three Ls: location, location, and location. You will want to consider many things, including the neighborhood that the property is located in. Look at similar neighborhoods to determine the likely growth trends over time for your property’s neighborhood. 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.

Engaging in a commercial transaction often takes more time, and is more difficult than simply buying a home. Remember that the time and efforts you are investing will pay off.

If you are hesitating between different properties, buy the larger of the two. Getting enough financing is a huge undertaking, no matter if you get a ten-unit complex or a larger twenty-unit one. By choosing a larger piece of commercial property, you will be getting a better rate per unit, giving you the best potential for success.

Educate yourself on the meaning of net operating income (NOI), a term associated with commercial real estate used for investment purposes. Success means that your income outweighs your operating costs.

Don’t become greedy and over-inflate your real estate asking price. Your property’s actual value is influenced by many factors.

Make sure you have sufficient utility to access on any commercial piece of real estate. Water and sewer access will be needed in addition to electricity. You may want the option to use natural gas, as well.

Aim to avoid default before you sign a real estate lease. This can decrease the chances of tenants defaulting on that lease. This is in your best interest.

Be sure to have your property inspected by a licensed inspector prior to placing it up for sale. You should consult with them and see if anything needs to be repaired; if it does go ahead and fix that as soon as possible.

Any new space you acquire might need some improvements prior to you occupying it. It could be as simple as a coat of paint or replacing some carpet. However, you might have to remove or relocate some of your walls so that you can get the most out of your space. 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.

Dual Agency

Make sure you try to read any disclosures for your agent. Make sure you understand the potential for the existence of dual agency. In a dual agency the Realtor represents both parties of the transaction. In other words, the agency is working for both tenant and landlord simultaneously. When it comes to dual agencies, both parties should actually agree to it and it should be disclosed.

Clearly, investing in commercial real estate will not bring you money for nothing. It takes money to make money in this industry, not to mention a fair time and work investment too. Even with the best laid plans, your efforts might lead to loss.

Confused About Where To Start With Real Estate? These Tips Will Help!

Purchasing commercial real estate requires new strategies and a different knowledge base compared to buying residential properties. The following tips will assist you in making the best commercial real estate purchases.

Before you buy or sell a commercial property, find out several key economic indicators for the region, including trends in unemployment and income, as well as major employers in the region. Properties centrally located near universities and hospitals will have a consistently higher value, and it will sell more quickly.

Pest Control

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.

When you are picking a broker, make sure you know if they are experienced within the commercial real estate market. Make sure they are specializing in the desired area that you’re selling or buying in. Most brokers will require you to have an agreement to work exclusively with them.

The Net Operating Income, or NOI, is one metric you need to master for success in commercial real estate. Make sure you are staying in the black to be successful.

You should be certain that your asking price is a fair offer for your piece of real estate. A variety of different criteria require consideration in order to increase or decrease your property value.

Be careful to choose commercial properties that are solidly and simply constructed if you plan to use them as rental properties. These are the most likely to quickly invite tenants into the space, because they know it is well-cared for. Not are the buildings more sturdy, there will be less maintenance issues for the owner and the tenant.

Make sure you have the right access that has utilities on commercial properties. The utilities you will need for your business go beyond electricity; you will also need water, sewer and gas, as well.

Take a tour of properties you are considering. Consider going with a contractor when you are looking at places you want to buy. Put forth your initial proposals, then open the table for negotiations. Give a bit of thought to the counteroffers before deciding to accept the offer, make a counteroffer yourself or walk away.

Establish your goals and needs before you start looking at properties. You should write down the features you are looking for, such as size or settings.

Dual Agency

Scrutinize any disclosures made by a real estate agent whom you intend to hire. Remember that a dual agency could occur. Dual agency means the real estate company is representing both the seller and the buyer in a property transaction. This means the agency works for the tenant and the landlord at the same time. If there is a dual agency, everyone should be honest about it and find an agreement.

When obtaining a loan for commercial real estate, it is up to the borrower to directly request an appraisal. The bank won’t let you go back and order it later. Order it yourself to cover your bases.

If you are novice investor, you should start off with just one single type of investment. You want to only choose one property type to give your undivided attention to. It is better to do your best at one type than to be average at many types.

Check the company’s reputation for customer service before you deal with them. Otherwise, you could be in for additional money later on due to their mistakes which could have been avoided in the first place.

As you are now aware, a number of factors must bear consideration in your commercial property hunt. Embrace this article’s advice to ease the process of finding your business’s future home.

Tips To Help You Make The Most Out Of Your Real Estate Venture

Dealing with the commercial real estate business can be overwhelming and stressful for beginners as well as those who have already been through it before. In the below article, you’ll receive lots of knowledge to assist you in purchasing commercial real estate, so that you can reduce your stress.

Whether buying or selling, negotiate. See to it that your concerns are heard and all you want is a fair price when it comes to the property.

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. Your house will sell more quickly and at a higher value if it is near a university, hospital or any large employment center.

Real Estate

Websites with abundant real estate investment information are worthwhile references for novices and experienced investors. Learning more about real estate will always benefit you, and you can never learn enough.

The location of the property is the most important factor to consider when investing in commercial real estate. When investing in a property, consider what type of neighborhood it is located in. Compare the growth of the property’s neighborhood to similar neighborhoods around the country. 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.

Buying commercial property takes more time, and the process is far more labyrinthine, than buying a house. However, all of this is required because it facilitates higher returns on your investments.

If your real estate deal includes inspections (and it always should), make sure to ask to see the credentials of all of the inspectors. There are many non-accredited people who work in such fields as insect removal. Reviewing credentials will help you prevent major issues after you make the purchase.

Aim to avoid default before you sign a real estate lease. If you are thorough, you are less likely to experience a tenant default. That is not a situation you would want to encounter.

Smaller Issues

A letter of intent should be simple to begin with, covering only the larger issues. Once an agreement on those terms are made, you can begin addressing the smaller issues. The initial negotiations will be less tense and the smaller issues will seem less important later.

Commercial real estate agents specialize in working with different types of clients. Real estate agents will work with landlords and tenants, but there are also some that only work with tenants. Brokers who work only with tenants have more experience with representing them well.

Make sure you try to read any disclosures for your agent. Keep an eye out for dual agencies. With a dual agency, you have the real estate broker working on each side of the transaction. Dual agency occurs when the landlord and the tenant hire the same agent. Whenever dual agency is part of a transaction, it must be disclosed to both parties of the transaction. Both sides must also agree to the dual agency.

Research the company and find out if they care about their customers’ best interests before you commit to working with them. If you don’t do this, you might get taken advantage of or wind up paying much more money over time.

Looking for commercial property can be overwhelming and stressful for those who are new and those that are experienced. The tips you just read can help lower your stress while searching for property. Hopefully, following them will allow you to enjoy the search.

Try Commercial Real Estate Investing With These Simple Tips

The commercial real estate racket is a challenging and demanding one. The potential profit is worth the hard work. Follow these tips to become successful in commercial real estate.

When entering the commercial real estate market, patience is perhaps your best ally. Do not invest into anything before thinking carefully. If you buy a property that doesn’t meet your needs, you’ll sorely regret it. It could take you twelve months or longer to get the deal that fits you perfectly.

If inspections are part of the deal on your real estate, be sure to check all the credentials of the hired inspectors. There are many non-accredited people who work in such fields as insect removal. This can avoid future problems after the sale.

Try to decrease potential events of defaults before negotiating a lease. The less behaviors you have that constitute default, the less likely it is that you’ll have to deal with a tenant’s default. You don’t want tenants defaulting on your leases.

Using a checklist is useful when you have multiple properties that you are considering. Accept the proposal responses from the first round, but be sure to inform the property owners directly if you decide to go further in your inquiries. Do not be shy about mentioning that you’re also looking at other properties that day. This may ensure that you get a much more viable deal.

It may be necessary to invest in some renovations before you can move into the space. Cosmetic changes like painting walls and rearranging furniture might be needed. Sometimes a new business will need to alter the floor space by moving interior walls. You should pre-negotiate the cost of these alterations with the landlord, and try to get them to contribute towards at least part of them.

Dual Agency

If the agent you are thinking of hiring for your commercial real estate transaction gives you any disclosure forms, make sure you read them carefully. Remember that dual agency is also an option. In this sort of situation, the agency acts as both parts of the transaction. In the case of a rental situation, the agency represents the landlord and the tenant. Dual agency must be disclosed by both parties and they need to agree to it.

You have to purchase a real estate appraisal yourself before you can qualify for a commercial loan. The bank won’t accept it as valid. Therefore, to protect yourself and keep your commercial loan on track, order the appraisal yourself.

If you plan on investing in commercial real estate, you should consider the tax benefits you will receive. Investors will receive tax breaks for both interest and depreciation of property. Yet sometimes investors receive what is called “phantom income”, and this is income which is taxed but isn’t received as cash. Before you make any investments, be sure you are aware of this kind of investing.

Before you purchase a property, talk to a tax advisor. A tax adviser can let you know how much money the buildings will cost you, and the amount of your income that will be taxable. Utilize the advice given to you by your tax adviser in order to locate a property in an area where your investment will incur the least taxes.

The environment of your property is an important factor. The one who’ll have to clean up any environmental waste on your property is you. Are you considering buying a property within a flood zone, which can effect your insurance, storm water drainage and possibly impede future growth potential? Think again! For information about flooding or other environmental factors affecting the region of a potential purchase, contact local environmental assessment agencies.

You have to ensure that the terms on rent roll and pro forma match up. Unless you carefully go over these terms, it is possible that you will have to go through additional paperwork and transactions.

As was stated near the beginning of this article, you can reap serious rewards from investing in commercial real estate. The suggestions presented in this article should help you avoid some of the most common pitfalls, and move forward toward success.