The advice in this article has helped many first-time investors like yourself turn a profit in the tough commercial real estate business.
Before you invest heavily in a piece of property, you should investigate its area to determine the average income level, income levels and local businesses. If you’re looking at a property that’s close to things like a university, employment centers, universities, or large companies, and at a high value.
Learning is an ongoing process, and you can never learn enough.
A variety of different criteria require consideration in order to increase or decrease your lot actually is.
This can avoid bigger problems after the sale.
Keep your commercial properties occupied. If you’re struggling to keep your properties rented, try to determine the reasons why, and look at ways of enticing tenants back in.
Make sure the property you are interested in has access to all utilities needed. Your business has utility needs of its own, but you are most likely going to need water, electric, sewer and maybe even gas.
You have to think seriously about the neighborhood of commercial real estate you may be interested in. However, if your services are more frequently utilized by people of lower socioeconomic brackets, make sure you find a property in an area that corresponds to your target audience.
Have property inspected before you list it for sale.
Advertise the commercial real estate far and wide. Many sellers mistakenly presume that their property is only interesting to local buyers. Many private investors are willing and able to purchase properties in other areas of the price is right.
Take a tour of the properties that are considering. Think about taking a contractor that’s a companion to help evaluate the property. Once you have all the details, you can submit your proposal and begin negotiations. Before making any commitment, be sure to carefully evaluate all counteroffers.
When you are composing a letter of intent, start off by dealing with the larger issues, then addressing the minor issues later in the negotiations.
If there is more then one property you are considering, make sure that you take a site checklist with you. Take the first round proposal responses, but don’t go further without the property owner knowing. Don’t hesitate to let it be known that you might be interested in other properties. This may help you score a better deal.
You need to know who takes care of emergency maintenance procedures. Keep the contact numbers handy, and know how long it takes them to arrive on average.
Check any disclosures of the chosen real estate agent that you carefully. Remember that dual agency could occur. This means the agency works for the tenant and the tenant. Dual agencies require full disclosure and must be agreed upon by both parties should agree to it.
With careful consideration and application of these tips, you have a solid foundation to build your commercial real estate investment strategy. By following the advice in this article, you too can enjoy the rewards and exciting opportunities available in commercial real estate.