It is true that commercial investment tends to be more profitable than residential property investment. It can be a little harder to find the good opportunities, though. Read these tips to learn how you can maximize your chances of finding the best deals and concluding a good transaction.
Real Estate
Search online for websites that provide information about real estate investments. These general interest websites can provide you with useful information whether you’re new to the world of real estate investment or have made a career out of investing. You can’t be too informed about the subject, so try to always be seeking out new sources of knowledge.
Compared with buying a home, purchasing commercial real estate requires more time, money and paperwork. Although commercial property purchases take longer you will normally receive a higher return on the investment.
When deciding between two viable commercial properties, it is best to think on a larger scale. Financing may be no more difficult for the large apartment building than the small one. Generally, it’s like buying in bulk; the more you buy, the less each unit is.
If your plan is to use your commercial properties as rental properties, you should seek buildings of solid and simple construction. Rental spaces that appear sturdy and well-maintained tend to attract tenants more quickly. This type of property will also make maintenance much easier on both you and your tenant.
When renting out your own commercial properties, keep in mind that is always best to have them occupied. If you’ve got open spaces, then the person will end up paying for maintenance and upkeep. If you have multiple vacant properties, figure out why this is, so you can understand why your tenants are leaving.
Make sure you have sufficient utility to access on any commercial piece of real estate. Water and sewer access will be needed in addition to electricity. You may want the option to use natural gas, as well.
Before making a commitment, you should request tours of any potential properties. As you tour each property, you should bring along an experienced contractor who can offer helpful input. You can then make an initial offer and begin the bargaining phase. Take your time and really explore your offers before you decide to buy or pass.
You will need to know what you are looking for in a commercial property prior to beginning your search. Write down what features are most important to you when you look a piece of property, like the square footage, the number of offices and conference rooms, and bathrooms.
Real Estate
When searching for a real estate agent, keep their disclosures in mind so you know who they are working for. Remember that dual agency is also an option. Your real estate agency will represent each side of the transaction. In effect, while you are paying the agency, they also work for the opposite side; if you are a prospective tenant, for example, the dual agency represents the landlord, as well. Dual agencies require full disclosure and must be agreed upon by both parties.
These commercial real estate basics should help you make wise investments. Keep learning more and adopt a flexible attitude. You should be able to recognize some golden opportunities that others don’t spot, and make some profitable deals.