Although there are usually quite a number of commercial real estate opportunities available at any given time, they are not as readily accessible as residential properties. You must know where to look, and this article will give you some tips so that you know just the right places to find good commercial properties.
Use a digital camera to take pictures. Your pictures should portray any damage or defect in the property. Common things you should look for include any cracks or holes in walls, and damages to the carpeting.
If you are looking to lease or rent, the issue of pest control is a critical one to address. Talk to your rental professional regarding pest control policy if you rent in a community known for bug or rodent infestation.
Choose simple, strongly constructed buildings if your plan is to purchase real estate for the sole purpose of renting or leasing it. Tenants are more likely to move in when they know the property is well taken care of. Tenants will also have to deal with maintenance issues less often, which means they have more time go about their business.
Make sure that the commercial property has access to all utilities needed. Look for access to water, electricity, gas an a sewer or anything specific to what you intend to use this property for.
You should carefully consider the neighborhood in which you purchase commercial real estate. If the property is located in a prosperous area, your business is more likely to succeed because your potential customer base is going to be wealthier. If the service you offer would appeal to less affluent people, you should not set up your business in an affluent neighborhood.
Do a walk-through of each property on your short list. You should consider asking an experienced professional to come with you and examine the properties you have an interest in. Set the stage for future negotiations by putting forth the preliminary proposals. Think long and hard about the counteroffer before deciding to accept or decline.
When you are comparing different properties, get tour site checklists. Accept the proposal responses from the first round, but be sure to inform the property owners directly if you decide to go further in your inquiries. You should feel free to let owners know that this isn’t the only property you’re looking at. It might lead to a better deal.
Before being occupied, your new purchase my need some improvements or remodeling. The changes don’t have to be extensive. You may just want to repaint or rearrange furniture. You may even need to tear a wall down to make the floor plan fit your needs. Decide in advice who will be responsible for these things and try to get landlords or previous owners to pay for some of it.
If you want to invest in a piece of commercial real estate, think about the kind of tax breaks and benefits you might receive. You will get good tax breaks for interest and also benefits for depreciation. Investors often get ‘phantom income’ this is income that does not have tax attached. You have to keep all of this in mind before you start to invest in real estate.
Prior to selecting a real estate broker, determine what kind of negotiating tactics they have. Know what sort of education and background they have. Choose a broker who only uses ethical methods and can help you to get only the best deals. Go ahead and ask them for examples of any past negotiations, including those that were successful and those that were failures.
You want to verify that the rent roll and pro forma terms match. You don’t want to regret anything in the future. If these key terms aren’t reviewed by you, you might identify a term left unconsidered by the rent roll, meaning the pro forma gets changed.
Locating which commercial property you wish to buy is really only half of your battle. Gaining even a little bit of knowledge about commercial real estate helps you make better decisions.