Define the type of commercial property you are interested in before beginning your search. Making a bad decision at this stage could cost you a lot. Review these tips to learn to make good choices when seeking a commercial real estate property for investment.
There are many informational websites available that aim to provide new and seasoned real estate investors with the necessary information. Excessive knowledge isn’t a problem you have to worry about, so it always proves smart to learn all you can.
When dealing with commercial properties location is everything. Neighborhood is important, even when you are looking at commercial property. Compare its growth to similar areas. You need to be sure that in five to ten years later, the area will still be growing.
Make sure that you know and understand what “NOI” (Net Operating Income) is. Success is about staying in the green.
Make sure you have sufficient utility to access on any commercial piece of real estate. Your business has utility needs of its own, but you will also need water, electric, sewer and maybe even gas.
When advertising your available commercial property, do so locally, but also regionally and even nationally. Many people think that investors who don’t live in their city will have no interest in their property, but this is untrue. In fact, the interest level can expand far beyond the local scene as private investors expand their interest. These investors are searching for affordable property and may be interested in yours.
Property Owners
When you’re shopping multiple properties, prepare a checklist to make the task easier. Certainly take down initial proposal responses, but don’t get into anything further without informing the property owners. Don’t hesitate to tell a property owner that you’re considering other properties as well. Most property owners won’t be upset or angry; they expect you to be looking at more than one property. The information may help you to negotiate more favorable terms on your deal.
You should always know who takes care of emergency repairs. Speak with the landlord about handling of emergency repairs just so you know who to call in that situation. Keep a list of phone numbers close to you, and make sure you select companies that answer quickly. Use any information you can get from your landlord so contingencies are ready for the times your normal business operations are interrupted so you can safeguard your customer service and your reputation.
Read the fine print about your real estate agent. Understand the meaning of dual agency. This means the same agent will be representing the two parties. In other words, an agency simultaneously provides services to both the landlord and tenant. Both parties need to clearly understand that the transaction is being handled by a dual agent and consent to this fact.
You can become successful in the commercial markets if you work hard and learn as much as you can. To succeed, however, you need to know what you are doing, as well as being a bit lucky. Some will still not succeed, but using the tips in this article will give you a much better chance of being successful.
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