Commercial real estate investing is quite a bit different than residential or other types of real estate purchases. The following advice that I learned from Dean Graziosi while I was listening to him on iTunes will help you get the best deal on your property. Go here to find more information on Dean Graziosi after reading this.
You should take numerous, high-quality photographs of the property. Be especially diligent in photographing any flaws that exist when you move in, like cracks in the wall or stains on the carpet.
Take the time to be certain you are satisfied with a piece of real estate before you purchase it. Don’t jump into any investment without doing your research. If the property doesn’t suit you in the end, you may regret your hastiness. Be patient, as it could take as long as a year for just the right investment property to turn up.
Take note that commercial transactions take more time, they are complex and they take more involvement than home purchases are. If you want things made easier, you might want to change what you’re getting yourself into. Although commercial property purchases take longer you will normally receive a higher return on the investment.
Be prepared to put a large amount of time into a real estate investment right from the start. First, you will need to search for a golden opportunity. After you have purchased the property, you may have to spend some time and money making repairs or remodeling it. Don’t throw in the towel due to the massive hours needed. Your rewards are down the road, and they are worth it.
If you are trying to choose between two good commercial properties, think big. 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. This works in the same way as buying bulk items from Costco. You buy large numbers of items to pay less per item.
Before buying a commercial property, research its net operating income to make sure you don’t lose money. To succeed, have positive numbers.
When selling a piece of commercial property, it is wise to ensure that you ask a realistic price. There are a lot of uncertainties which can have a huge impact on the price of your lot.
If you own commercial properties for rent, you should always attempt to keep them filled. If no one is paying you rent, you’ll be the one footing the bills. Consider why your property has driven away tenants and try to rectify the situation.
Make sure you have the right access that has utilities on commercial properties. Your business has utility needs of its own, but you will also need water, electric, sewer and maybe even gas.
You have to think seriously about the neighborhood where a piece of commercial real estate is located. Purchasing in neighborhoods that are in the upper price per square foot range will help for successful business because the surrounding owners have more money to spend. Yet, if you have a business that might thrive in a neighborhood where the not so well-off would opt to go to your business, then maybe that kind of neighborhood is for you.
When writing up a letter of intent, make sure to keep your offer simple and straightforward, focusing on the bigger issues at first and then figuring out those pesky, little details later. By focusing on the big stuff first, you will have more pleasant negotiations, and you will be better able to manage small matters in the end.
As you can see, there are a lot of things to consider when shopping for commercial real estate. Make sure to keep the advice from this article in mind to ensure that you get a fair deal that fits what you need out of the building that will house your business.
Click here to watch the videos from Dean Graziosi.