When developing your real estate investment strategy, you must formulate a clear picture of the types of commercial properties that you will pursue. If you make the wrong decision, it could become a financial disaster. Keep reading for tips to help you make informed decisions in your commercial investments.
Use a digital camera to take pictures. In the “before” photos, especially, make sure that the pictures clearly show defects such as stains on the carpet, discolorations in the tub and sink, and holes in the walls.
Be calm and patient when looking at commercial real estate. Do not rush into making quick real estate decisions. You will be full of regrets if you are stuck with a property that is not what you expected. It could take some months, possibly a year, for your dream investment to appear in the market.
Pest control is something you should look into when renting or leasing a property. If you are renting in an area that is known to have a lot of rodents, pests, or bugs, then ask your agent what the policies on pest control are.
You might have to spend a lot of time on your investment at first. First you have to hunt down a good deal, and then, after your purchase, you may be required to complete some repair work or remodeling. Do not cut corners on this process, just because it might take up a lot of time. Stick with it and you’ll be rewarded.
Make sure that the broker you decide to work with has experience in the commercial market. Verify they have experience in working with the type of properties you are interested in. At that point, you might want to consider entering into an exclusive listing with that agent.
Net Operating Income, or NOI, is one of the most important metrics used in commercial real estate. You must understand what it means, and how it’s used. As long as you get positive numbers, you will be successful.
When having your real estate inspected (as you should), always ask for the qualifications of the inspectors. A lot of people have no accreditation, especially in pest control services. This can prevent larger problems from occurring after the sale.
If you want to rent your commercial property, well built solid buildings are your best bet. These will attract potential tenants quickly because they know that these properties are well-cared for. These buildings also provide much easier maintenance for both the tenants and the owner, as they are less likely to require repairs.
You also want to take into consideration the neighborhood that your real estate is in when you purchase commercially. If you are buying the property in a more expensive neighborhood your business will most likely be a lot more successful, people there have more to spend. If your business services will do better in a poor neighborhood, buy property there!
Before you can start using the property you’ve purchased, you might need to make some improvements. In some cases, all that is required are simple changes like moving the furniture around or giving the walls a new coat of paint. Oftentimes, moving walls and other fixtures is required to redistribute the floorplan. If you’re leasing or renting, you can ask the landlord to make these changes at no cost to yourself.
As you’ve seen from these tips, it is very possible to achieve success in real estate investing. In the real estate market, things like dedication, technical knowledge and skill will go a long way. Not everyone will be a success, but using the tips above, you can improve your chances at being successful.