It really is not so hard to start investing in commercial real estate. There are, however, a few things you need to know about a property before making any transaction. This article contains tips to help you get more from your experience.
Before you jump into a commercial real estate deal, you want to get a lay of the land first. This means considering and examining the general income levels in the area, how high or low unemployment rates are, and looking at the hiring practices of employers within the vicinity of where you intend to invest. If you’re house is close to a university, hospital, or large employment center, they sell quick and at increased values.
Take photos with a digital camera. Be sure the photos capture any defects that exist in the unit, such as holes in the wall, and damaged or dirty carpets.
Pest Control
You should know what kind of pest control services are available to you when renting or leasing. 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.
As with other property purchases, pay attention to the three Ls: location, location, and location. Pay attention to the property’s surrounding neighborhood. Compare the growth of the property’s neighborhood to similar neighborhoods around the country. Do not buy a property that is located in a neighborhood likely to take a wrong turn in the next five years.
When you are picking between commercial properties, think big! Financing may be no more difficult for the large apartment building than the small one. Think of it like purchasing in bulk; as you buy more, each individual unit costs less.
Ask any potential broker about what experience they have had with commercial property before choosing someone to represent your interests. 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. Once you find the broker you want to use, sign an exclusive agreement.
You should examine the surrounding neighborhood of any commercial real estate you may be interested in. You want to try to purchase commercial property in a neighborhood that is affluent so that you know your clientele are a little bit more well off and can spend more. However, if your products or services correspond to a specific social category, make sure you find a property in an area that corresponds to your target audience.
Have your property inspected before you list it for sale. 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. Too many sellers assume that their property is likely to only sell to someone local. This is a way of thinking you should avoid. Many private investors are interested in cheap or affordable properties in other areas of the country or world.
When you are looking at multiple properties, get a tour site checklist. Accept the proposal responses during the first round, but before going further, notify all the property owners involved. Consider allowing it to slip out that you are also looking at other properties. This could help you score a better deal.
Commercial Real Estate
As you already no doubt know, smart commercial real estate investing takes time and research. The purpose of the article was to give you information to help you on your quest for success with commercial real estate.