Unless you have a clear idea of where to begin, locating and purchasing a prime commercial property may seem almost impossible. Read this article to acquire a good groundwork of information that will help you get off on the right foot.
Make sure you always remain cool, calm, and collected when you begin to look for commercial real estate. Don’t jump into any investment without doing your research. If you buy a property that doesn’t meet your needs, you’ll sorely regret it. It could take up to a year for the right investment to materialize in your market.
When dealing with commercial properties location is everything. Think about the type of neighborhood the property is in. You will also want to calculate growth expectations by comparing similar neighborhoods. You’ll want to choose an area that is on the upswing and will continue growing for at least a decade into the future.
Negotiate, whether you are the buyer or the seller. It is important that your concerns and opinions are heard and recognized by the other parties; you must always put forth the effort to ensure fair pricing for the commercial property.
If you are trying to choose between two good commercial properties, think big. The difficulty in securing financing doesn’t increase linearly with the size of the building you are buying. The concept here is the same as any other situation where you are purchasing multiple things. The more you purchase, the less you will pay for each unit.
Ask any potential broker about what experience they have had with commercial property before choosing someone to represent your interests. Make sure that they are experts in the area in which you are selling or buying. When you find the right broker, make sure your agreement is exclusive.
Make sure that any property you’re considering purchasing has access to all the utilities you’ll need. Look for access to water, electricity, gas an a sewer or anything specific to what you intend to use this property for.
Use a digital camera to take pictures. Make sure the picture shows the defects (such as spots on the carpet, holes on the wall or discoloration on the sink or bathtub).
If you are negotiating a commercial lease, make sure nothing can be considered as events of default. This will decrease the probability of the tenant defaulting on the lease. You definitely don’t want this to occur.
A letter of intent should be kept simple by focusing on larger issues and leaving smaller issues to negotiate later. This make negotiations less contentious, as coming to agreement on minor issues is naturally easier than agreeing on the big stuff.
Read the fine print about your real estate agent. Watch for possible dual agency. What this means is that your chosen agency has an interest in buying and selling the property. In other words, an agency simultaneously provides services to both the landlord and tenant. If this is the case, and the agent is a dual agent, this should be known to both parties and agreed to by both parties.
When entering the commercial real estate market, patience is perhaps your best ally. Do not go into an investment out of haste. You may soon regret it when the property does not fulfill your goals. It could take some months, possibly a year, for your dream investment to appear in the market.
The purchase or sale of commercial property should now be a lot easier thanks to the advice contained in this article. This advice will help you stay informed.
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