As a matter of fact, commercial real estate offers more profit potential than even residential properties represent. Finding that diamond in the rough isn’t always easy, though. Use the following tips to better understand the market so you can find the right investment for you.
When entering the commercial real estate market, patience is perhaps your best ally. Do not invest into anything before thinking carefully. The property you buy in a hurry might not deliver what you need to reach your goals, leaving you to regret the purchase afterward. It could take as long as a year to find the right investment in your market.
Location, location, location is important to consider. Think about the neighborhood your property is located in. Also, keep growth in mind. If you make an investment in real estate, it is in your best interest to ensure that your property is in an area that will still be growing in five to ten years.
Take digital photographs of the unit. Make certain that the pictures show irregularities, such as holes or bad paint on walls, carpet stains, and bathtub or sink discoloration.
If you are in a situation where you have to choose between two attractive commercial properties, remember that size matters. Whether it be a twenty or ten unit apartment complex, you want to get adequate financing to back you up. This just reflects the general advantage of buying anything in bulk; when you buy a property with more units, you get a lower average price for each one.
Make sure that any property you’re considering purchasing has access to all the utilities you’ll need. Water and sewer access will be needed in addition to electricity. You may want the option to use natural gas, as well.
When you are considering making an investment in commercial real estate, know what you need. You should write down the features you are looking for, such as size or settings.
You should thoroughly look into the brokers that you are considering, and determine their level of expertise and experience when dealing with commercial real estate. Look for brokers who specialize in the type of commercial property that you’re purchasing or selling. Once you’ve determined the broker is right for your needs, make sure any agreement into which you enter is an exclusive one.
You should always know who takes care of emergency repairs. The landlord in the building where you have your office will be able to provide emergency repair contact information for you. It is important to keep these contact phone numbers handy and to have a good understanding of how long it will take for them to respond if needed. Make an emergency plan once you have this information. If a flood, fire or break-in interrupts your normal business day, you need to have a plan in place so that you can re-open as soon as possible.
After reading this article, you should be familiar with commercial real estate basics. Try to stay flexible and always try to think on the fly as you move throughout the real estate market. You should be able to recognize some golden opportunities that others don’t spot, and make some profitable deals.
If you are renting out your property, be sure that they are always occupied. If you have any empty property, then you are responsible for its upkeep and maintenance. If you have many open properties, then you need to reevaluate why that is the case, and try to remedy any outstanding problems which have caused your tenants to leave.