Dealing In Commercial Real Estate Like A Pro | Eric Chua : Life - First

If you are new to the whole commercial real estate scene, then this collection of tips can provide you with a valuable introduction to several common concepts. In the article below you will see a gathering of information that can help a beginner go from enthusiastic novice to becoming a pro in this field.

Location, location, location is important to consider. Think about the neighborhood your property is located in. Look at similar neighborhoods to determine the likely growth trends over time for your property?s neighborhood. This is important, as you don?t want to be in a current growth area only to have the neighborhood stagnate in a few years.

A variety of kinds of commercial property real estate brokers exist. For example, full-service brokers represent both the landlord and tenants. There are also tenant brokers that work exclusively for the tenants. You may benefit significantly better from hiring the services of a broker working with tenants exclusively, as he has significantly more experience representing tenants successfully.

TIP! Try sending a newsletter about your commercial property, or post fresh content on a networking site. Don?t just fall off the face of the earth once you seal a deal.

Dual Agency

Before paying any agent, check his or her disclosures; these can tell you a great deal about the agent?s character and ability. Some agents work for a dual agency. Dual agency means the real estate company is representing both the seller and the buyer in a property transaction. In other words, the agency represents the landlord and the tenant simultaneously. When it comes to dual agencies, both parties should actually agree to it and it should be disclosed.

You will probably have to put a lot of effort into your new investment at the beginning. First you will need to find a property that you think is worth purchasing, and you may have to remodel or repair it. Don?t abandon you commercial real estate venture because it currently consumes so much of your time. Once you get the property ready, you will be compensated for years to come.

TIP! If you are presented with a standard commercial lease form, do not sign it immediately. Take your time.

For a commercial property you plan to rent out, make sure it is a solid construction with a simple design. These types of buildings attract tenants more quickly than other buildings, as prospective tenants know that the building is less likely to have maintenance issues. In addition, these properties are low maintenance because they don?t frequently need repairs, a benefit to the owners, as well as the tenants.

Itis customary for the borrower to arrange for the appraisal on a commercial loan. The bank won?t accept it as valid. Do the right thing and order it yourself.

Square Footage

TIP! Look at any environmental impacts or prior EPA issues with the property. It is your responsibility to clean up any environmental waste on your property.

Be extra careful when inquiring about a commercial property?s square footage. Commercial property can be effectively measured by how much square footage is actually usable by a business, whereas the physical total includes walls and uninhabitable or inaccessible areas. Get a number for both kinds of square footage, so you can gauge if the property really suits your needs.

Interest rates which are on a rollercoaster ride are what terrifies investors in commercial real estate. The current economy makes rates fall and rise with unpredictability, and can leave investors susceptible to majorly increased interest rates. Consider this when you start to shop for properties, and evaluate your long-term options.

If you are investing in an apartment complex, then you need to understand that a small complex may be more hassle than it is worth. In fact, it is often recommended by those with much experience to stick with complexes that only have above 10 units. Of course, every property is different, so you should rely more on your research to make the appropriate decision.

TIP! Find a good attorney who will help you through every step of your commercial transaction. If something does not go correctly in your real estate deals, you are going to need the right person working for you in order to keep your name clean and unblemished.

If you are viewing more than one property, you may wish to create a checklist for each site. Do not proceed past initial proposal responses, unless you inform the property owners. Make sure that the owners are aware that you have other options available. This may ensure that you get a much more viable deal.

There is a chance of drastic inflation in the upcoming years that commercial investors in real estate should be aware of. In the past, many leases had built-in clauses that made adjustments according to the Consumer Price Index, which protected signers from inflation. This protection is rarely available today, so signers are more less protected to losses due to inflation.

Document your business needs prior to hunting for commercial property. Know just what type of office space that you are going to use. If you intend to expand your business quickly, buy a bigger place during this dip in the market to save money over the long term.

TIP! Buying commercial property takes more time, and the process is far more labyrinthine, than buying a house. The added time and effort are crucial, however, to getting the return that you want on your investment.

If you rent commercial property, do what you can to keep occupancy high. Vacancies cost you money, because you have to pay for maintenance and upkeep without drawing income from them. You need to ask yourself why properties are not getting rented and fix any issues you discover.

Make sure to find your lender before making an offer on any commercial property. Consult with friends who have experience along with other investors in order to compile a list of lenders that you should consider using. Do a little research and select one that will meet your needs, before you even begin the process of purchasing commercial real estate. Taking the extra time to get things lined up can help ensure that you qualify for a loan.

You may wish to focus your efforts on only one property type at a time. You should focus on a certain investment type, such as office buildings, apartment complexes, buildable land or retail properties. Learn more about all the different types of investment to make good decisions. You?re better off being an expert at one than you are being average at many.

TIP! Foster a reputation for yourself by having a blog which specializes in commercial real estate. This assists in locating people to buy or lease your property.

You should have a better idea of what you need to start with after reading this article. The collection of tips that you have just read were specifically selected and grouped together for the purpose of bringing success to those who have an interest in commercial real estate.

Source: http://www.maynaseric.com/dealing-in-commercial-real-estate-like-a-pro-5

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