Commercial properties are up for sale all the time; they just do not get put up as preferential listings. You will need to scour the markets to find the best deals for you, and the following article will guide you to doing just that, as well as offer other suggestions on how to make decisions that will lead to your success in commercial real estate.
Commercial real estate is more time consuming, confusing and involves more than just buying a home. The duration and intensity is necessary if your investment is to yield a high return.
Be careful to choose commercial properties that are solidly and simply constructed if you plan to use them as rental properties. These properties are generally top sellers because prospective tenants can see how well-built and maintained they are. Such buildings also usually need fewer repairs, which is an advantage for the tenants, as well as the landlord.
Your investment might be very time consuming at first. You have to look around for the right chance, and you might need to do some improvements on the property once you purchase it. Don’t let the amount time you need to put in during this phase discourage you. Your patience will eventually be rewarded through profits.
It is important that each property offers unhindered access to utilities. Your business may have unique utility needs, but at the very least, you probably require hookups for electric, sewer, water and most likely, gas.
You should think about what neighborhood you are going to buy the commercial real estate in. If you buy property in a very affluent area, your business will likely be successful, because your clientele will be better able to afford what you are selling. Or if your services are for the less wealthy, purchase in this type of area.
If you put the commercial property up for sale, have it inspected. If there is anything wrong with your property, have it fixed right away.
Once you have narrowed your choices down to two major contenders, you should expand your decision to include the big picture. Getting the proper financing is going to the same hassle for a retail building with ten outlets as it would be for a retail property with twenty or even thirty units. Generally, this is the same situation as if you were buying something in bulk, the more you buy the cheaper the price of each unit.
Take tours of properties with purchase potential. When looking at a property that you are thinking of purchasing, it’s a good idea to have a licensed contractor accompany you. Make a proposal early, and get into the beginning stages of negotiation. Evaluate and reevaluate the counteroffers before making any kind of decision one way or another.
When drawing up a letter of intent, try to solicit agreement on big issues first and leave smaller issues for later rounds of negotiations. This will make the negotiations faster and less tense, and it will also cause the lesser issues to be completed easier.
Emergency Repairs
Do not hire a broker without finding out more about their past experience within commercial property. Choose one that specializes in your area of interest. Allow the broker to acknowledge your wish for an exclusive agreement between the two of you.
Emergency repairs should be a high priority on your list. Talk to the building’s landlord about the person who currently handles emergency repairs. Keep their numbers updated, and know how long it takes them to arrive on average. 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.
Finding the right commercial real estate property is only part of the equation. Just a little knowledge will go a long way in helping you seal the best deal in commercial real estate.
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