Any newcomer to the commercial real estate market can benefit from a compilation of hints and tips on the most effective ways to purchase or sell commercial property. With the advice below even a beginner can learn to do what it takes to become a pro in buying and then selling real estate for a good profit.
When entering the commercial real estate market, patience is perhaps your best ally. Do not rush into making quick real estate decisions. If the property turns out to be wrong for you, you will regret your decision. 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, pest control is important to look at. It is a good idea to consult your rental agent for information on pest control policies, especially if the area your property is located in is known for a high population of insects and rodents.
There are many websites available that offer information to investors; therefore, learn all you can before searching for commercial property. You can never know too much when it comes to commercial real estate, so never stop looking for ways to obtain more information!
Pay attention to the location of a property. Take into consideration the class level of the neighborhood, other commercial properties surrounding it, and accessibility. Also, consider local growth projections. 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.
Initially, your investment will take up a great deal of your time. First, you will need to search for an opportunity and purchase the property, as well as perform any repairs that are required. Do not cut corners on this process, just because it might take up a lot of time. You will reap the rewards of all your hard work.
You also want to take into consideration the neighborhood that your real estate is in when you purchase commercially. A business located in a well-to-do neighborhood might be more successful, since the potential customers will be able to spend more. 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.
When you are selling a commercial property, always make sure to include all buyers; this includes local and non-local buyers. Too many people assume that only the locals are interested in buying property in the area. Some private investors will be interested in properties outside of their areas if the price is low.
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. This will make negotiations less tense and make gaining agreement on the smaller issues easier to complete.
If you are considering more than one property, be sure to obtain a checklist for the tour site. Allow yourself to consider the initial proposal responses, but avoid carrying it any further without informing the current owners. Do not be afraid to let it slip to the owners that there are other properties that you are considering. Telling the property owner that he has competition for your money might inspire him to offer a better price to encourage you to buy from him.
Always include emergency maintenance on your list of need to know things. 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. 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.
Commercial Real Estate
Regardless of whether your interests lie in purchasing, selling, or investing in commercial real estate properties, following the advice in this article is a great way to get started or put yourself ahead of the pack. By following these specially selected tips, you can practice your skills at buying and selling commercial real estate and become a real pro.