Owning commercial real estate has huge profit potential and might lead you to wealth. This being said, there are definitely some major risks involved, so it may not be the best path for every investor.
Use a digital camera to take pictures. Make certain that the pictures show irregularities, such as holes or bad paint on walls, carpet stains, and bathtub or sink discoloration.
Make sure you always remain cool, calm, and collected when you begin to look for commercial real estate. Do not go into an investment out of haste. You’ll regret it quickly if your lack of research results in a property without much re-sale value. It could be a year-long process before you begin to see investments in your market pay off.
When you’re trying to decide which broker you should work with, take their experience in commercial real estate into account. Make sure they are specializing in the desired area that you’re selling or buying in. You should be sure to enter into an exclusive agreement with that broker.
When selling a property, you should make certain that whatever price you set is realistic. Your property’s actual value is influenced by many factors.
Aim to avoid default before you sign a real estate lease. Your tenant will be less likely to default on the lease if you do this. You, of course, would not desire this to occur.
If you want to sell a property, advertise it locally and on a wider level too. Do not assume that only local investors will be interested. Many private investors are willing and able to purchase properties outside their immediate community if the price is right.
A letter of intent should be simple to begin with, covering only the larger issues. Once an agreement on those terms are made, you can begin addressing the smaller issues. It will be less stressful to negotiate and can also make it easier to come to terms on the smaller things as well.
It’s likely that the property you buy will need some repairs and work before you move in. The changes could be rather cosmetic. Sometimes it is as simple as painting a wall or moving some furniture. However, many people find they need to take out or add walls to make modifications to the basic floor plan. Negotiate these changes ahead of time with the landlord. He may be willing to share these costs needed in order for you to move in.
Know how to get emergency maintenance performed on a property at a moment’s notice. Inquire with your landlord about who handles the emergency repairs in the space you rent. Have the phone numbers on speed dial, and know how long it generally takes stuff to get fixed. Create an emergency plan using your landlord’s information so that you can protect customer service and your reputation in case of a disruption to your usual business.
In commercial real estate, there are different kind of brokers. You have a full service broker who works on behalf of both the tenant and landlord, then you have brokers who only work with tenants. If you’re going to be a tenant, working with a tenant-exclusive broker benefits you because of their relevant and deep expertise.
Read the fine print about your real estate agent. Remember that dual agency is also an option. Dual agency is when a real estate agency is responsible for the representation of both parties involved in a transaction. Or, for short, the agent is looking out for both parties’ interests. Dual agency must be disclosed by both parties and they need to agree to it.
Commercial real estate is immensely profitable for some. This being said, it takes money to make money, so it is important to protect yourself and your investment by putting in your maximum effort to each and every deal. In order to do this, make sure to follow the tips and tricks in this article that can help you succeed.