Tag Archives: selling commercial property

How to Buy And Sell Commercial Properties

The commercial real estate racket is a challenging and demanding one. But, the rewards can be very lucrative as well. Follow these tips to become successful in commercial real estate.

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.

If you are new to investing in real estate, spend some time surfing online resources that house information that seasoned investors use. No one can ever honestly claim that they know too much.

Location is a very important part of commercial real estate. You will want to consider many things, including the neighborhood that the property is located in. Look at the growth of areas that are similar. 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.

Commercial transactions are significantly more time-consuming, complex and involved than the home-buying process. Remember that the time and efforts you are investing will pay off.

Unit Building

Once you have narrowed your choices down to two major contenders, you should expand your decision to include the big picture. Getting the financing you need is going to be complicated whether you choose a five-unit building or a fifty-unit building. In effect, this is similar to an economy of scale, or also like purchasing more of an item to save money.

Commercial rental buildings should feature sturdy construction and simple details. These types of buildings attract tenants more quickly than other buildings, as prospective tenants know that the building is less likely to have maintenance issues. 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 rent out your commercial properties, always remember to keep them occupied. If you have open spaces, then you are the person who will be paying for their upkeep and maintenance. If you have many open properties, then you need to reevaluate why that is the case, and try to remedy any outstanding problems which have caused your tenants to leave.

Prior to selling commercial property, have it inspected first by a professional. 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.

When selling commercial property, advertise locally and outside of your region. There are a lot of people who make the big mistake who think that only local people want to purchase their property. If your property is well-priced, advertising outside of your direct area will enable you to tap into a large pool of private investors that would be interested in your property.

Before you begin seeking commercial real estate property, be sure to identify your requirements. Think of any property features that are high priorities for you and list them down, like the number of restrooms and office, conference room availability and overall square footage.

Before being occupied, your new purchase my need some improvements or remodeling. These may be simply applying new paint or a change in furnishings. In many cases, walls must be moved and floorplans rearranged. 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.

If you are just getting started investing, focus on just one category of investments. Find one property type to focus on and devote your undivided attention to it. It’s better to be very good at one particular type of real estate than to be okay at a lot of different types.

Look for an agency that keeps your best interest in mind. Otherwise, it might cost you a lot of money in the future for something you could have easily avoided.

Real Estate

As discussed previously in this article, investing in commercial real estate properties can be an extremely profitable endeavor. Use what you’ve learned here to improve your skills, and make sound decisions in all of your real estate purchases.

Effective Commercial Real Estate Tips And Tricks

Navigating your way through commercial property transactions can be challenging, unless you have done a lot of homework. Be sure to read this article to gain some insightful knowledge.

Look at the neighborhood you’re thinking about investing into, you want to check things like unemployments rates, income levels, and different rates of expansion so that you have an idea of where the neighborhood stands, and what potential it has in the future. 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.

Use of a digital camera is a simple and effective strategy. Make certain that the pictures show irregularities, such as holes or bad paint on walls, carpet stains, and bathtub or sink discoloration.

You might have to spend a lot of time on your investment at first. Finding a good opportunity, going through the transaction and making any necessary repairs to the property takes time. Don’t throw in the towel due to the massive hours needed. Your efforts will be rewarded.

Ensure that the amount of money you want for your commercial property makes sense, given local market conditions. There are a lot of uncertainties which can have a huge impact on the price of your lot.

If inspections are included in your real estate transaction, as they usually are, make a request to see the inspectors’ credentials. Many people in certain fields are not accredited, including pest and insect removal services. This can prevent larger problems from occurring after the sale.

Make sure you have sufficient utility to access on any commercial piece of real estate. The utilities you will need for your business go beyond electricity; you will also need water, sewer and gas, as well.

Constitute Default

Before negotiating a lease with a commercial tenant, work on narrowing down the list of things that would constitute default. 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 definitely don’t want this to occur.

When selling commercial property, advertise locally and outside of your region. Too many people assume that only the locals are interested in buying property in the area. Many private investors find it appealing to purchase properties that are affordably priced outside of their direct area.

When you write your letters of intent, start off by dealing with the larger issues, then move on to the smaller ones later. This will help to reduce some of the tension in initial negotiations and will also make gaining agreement on some of the smaller issues much easier.

You should always know who takes care of emergency repairs. Inquire with your landlord about who handles the emergency repairs in the space you rent. 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.

Dual Agency

Read the fine print about your real estate agent. There is a possibility of a condition called dual agency. In a dual agency the Realtor represents both parties of the transaction. The real estate agency will represent both the seller and the buyer. If this is the case, and the agent is a dual agent, this should be known to both parties and agreed to by both parties.

Find out more about tax benefits before you invest. Not only are there interest deductions, but also depreciation benefits to be aware of. Yet sometimes investors receive what is called “phantom income”, and this is income which is taxed but isn’t received as cash. Before investing, become more familiar with this sort of income.

Find a trustworthy real estate firm by asking about how they make their profit. They should be able to discuss the question openly and tell you that their best interest differs from yours. Find out how your broker will benefit form the transaction you want them to work on for you.

The article you just read contains a lot of useful tips you can use when buying or selling commercial property. Look for more resources and make sure you use what you learn.