Just because you have successfully invested in residential real estate does not mean that you will succeed in commercial real estate industry. There are just too many differences to manage.
To ensure that you are properly informed about commercial real estate, check out this collection of tips and read them carefully.
1. If you are buying and selling real estate as a business, do not avoid rents. Empty properties do not make money, they lose money instead. If a property is empty for a significant period, sell it. No matter how big investment is when it is full, an empty rental has no value to you.
2. Another factor to consider when buying or renting a property is who pays for pest control. This is a very important issue in some areas, especially in areas with known populations of pests.
3. Ask your leasing agent about the company's policy on the return of your security deposit. Some companies will deduct the costs of cleaning, tear and wear, regardless of the condition of your home when you move out.
Have a clear idea of your deposit before you sign the lease, as you can lose a significant amount of money when you move out.
4. In many cases, it is best to use the services of a commercial real estate broker. These brokers are trained, well educated and understand the commercial market, the times to buy and what to avoid. You can also save a little time by utilising the services of a broker.
5. When negotiating, strictly adhere to the information you are sharing. The bargaining power is based on your ability to remain cautious.
Information about your reasons for selling or buying, your needs and other factors could lead to your diminished bargaining power if you launch too soon. The negotiator might find an advantage against you, rather than the other way around.
6. The most successful commercial real estate investors are the ones who can find a good deal and know when to go.
Develop an exit plan and know how to calculate your minimum requirements for payments, returns and projected cash flows. No matter how attractive the property may look, feel free to leave it if it does not meet your expectations.
7. Determine if there is sufficient access to and from your company for tickets and deliveries that you anticipate. There could be very large vehicles that need access to your business parking lot, and if access to and from the property is not enough, you should find another option in commercial properties.
8. Plan all commercial real estate investments long before the actual purchase. Time is on your side in this type of market. In many cases, most economic concessions are made just before the closing date of the transaction. Do not let the seller know that you are trying to close quickly.
Reading and understanding the collection of tips included in this article is your first step towards success with commercial real estate.
The next step is, of course, to make this knowledge work and make calculated moves to make sure you succeed rather than fail. This article can help you get started, but you have to prepare yourself.
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