Get Into Commercial Real Estate With This Advice
Finding the right type of commercial property to start your business can be difficult unless you know where to look. Read on for ideas and suggestions that will help you.
Don’t be led by hype and fads when searching for commercial real estate. Do not rush into making quick real estate decisions. You are at risk of making poor decisions when rushing into things, and if your property investment does not work out, you will regret it. You should be prepared to wait an entire year before a worthy investment becomes available to you.
Before you consider leasing or renting, look into whether or not pest control is covered in the lease. This is important in less desirable locations where rodents and/or bugs are an issue. Have your rental agent inform you of any associated policies for pest control.
Location is key in commercial real estate. For example, consider the surrounding area and local neighborhoods. Look at the growth in similar areas. You want to make sure that in 5 or 10 years down the road, the area is still a descent and growing area.
Purchasing commercial properties is more time-consuming and complex compared to the purchase of a home. Keep in mind though that the arduous nature of this process is just a stepping stone to better dividends yielded from the hours and money you invest.
If you trying to choose between two or more potential properties, it’s good to think bigger in terms of perspective. It’s just as difficult to obtain adequate financing for a 10 unit apartment complex as it is for a 20 unit building. Also, purchasing more units is like buying in bulk. The more you buy, the cheaper each unit will be.
If your property deal requires inspections (as it should), look at the inspector’s credentials. You need to be especially diligent when it comes to hiring a pest control service, as many people who work in this field aren’t accredited. This will avoid bigger problems in the post-sale.
If you’d like to rent out the properties you purchase, it’s best to buy a simple building with solid construction. Tenants are more likely to move in when they know the property is well taken care of. Such buildings also usually need fewer repairs, which is an advantage for the tenants, as well as the landlord.
Check out where the utility hook-ups are on any commercial property. Your business has utility needs of its own, but you will also need water, electric, sewer and maybe even gas.
Take tours of properties with purchase potential. Even better, have someone who knows commercial real estate tour the properties with you. Submit a first offer and solicit counteroffers. Carefully look over any counteroffers you receive before you make your final choice, whatever that may be.
When you’re shopping multiple properties, prepare a checklist to make the task easier. Do not proceed past initial proposal responses, unless you inform the property owners. Do not be shy about mentioning that you’re also looking at other properties that day. It could even get you a good deal.
The article you have read has great advice and tips that you can use as you are purchasing or selling commercial real estate. Be as informed as you can.