Commercial real estate is an easy market to break into, assuming you are savvy. There are, however, a few things you need to know about a property before making any transaction. This article is here to help you arm yourself with some tips and tricks that can help you be successful.
You should take numerous, high-quality photographs of the property. Be sure that the pictures show any current problems with or damage to the home.
You should expect your commercial real estate investment to require a significant time commitment. First, you will need to search for an opportunity and purchase the property, as well as perform any repairs that are required. Don’t abandon your investments because they are eating into your personal time. Your rewards will come later.
Keep your rental commercial properties occupied. You’re the one who has to pay to keep the building maintained, and if no one’s renting them, you’re wasting your money. If you have lost several tenants or can’t seem to attract them in the first place, there must be a reason. It is your job to figure out the problem and correct it.
Make sure the property you are interested in has access to utilities. The property must have access to electric, water, sewer and maybe gas for it to be a viable commercial real estate purchase.
Eliminate as many definitions of default (i.e., actions that constitute default) as possible before beginning to negotiate a lease with a new tenant. This can decrease the chances of tenants defaulting on that lease. You want to ensure this doesn’t happen at all costs.
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.
Tour any properties you are considering for purchase. You should consider asking an experienced professional to come with you and examine the properties you have an interest in. Use what you see in these tours to determine a fair opening offer. Evaluate and reevaluate the counteroffers before making any kind of decision one way or another.
Property Owners
Create or purchase an inspection checklist before starting to evaluate properties. Tour each potential property, and check how well it meets the requirements on the list. 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. Letting the property owners know that you are looking at other properties can help, too. You might walk away with more money in your pocket.
As you have seen, it is important to do your research before jumping into investing in commercial real estate. Hopefully this article has provided you with some of the information you will need in order to become a successful, global commercial real estate tycoon.