Thursday, February 16, 2012


It is easier than it seems to be a success in commercial real estate investing. However, there are some things you need to know before you jump into the market. Read this article to find out more about common tricks and mistakes you should avoid in becoming a successful investor.

Look for commercial real estate property that has more units. The more units that are in your possession, the easier it becomes, to turn a profit on each of them. Many buyers don't look at a property with less than 10 units, and many think the more units you have, the more cash you can earn.

Make sure you are completely aware of the available square footage. It is common for commercial properties to be described in terms of usable square feet in which an enterprise would actually operate, or in terms of total square feet, which encompasses walls and non-usable area. It is a good idea to know measurements for each type of square footage. This will allow you to make decisions and speed up the process.

Always ask to see the credentials of any inspectors you hire for your commercial real estate deal. There are more than a few people working without certification in the pest removal and insect fields, so be sure to ask for proof of certification from them. Seeking out professionals with proper accreditation will be worth it in the long run.

When considering an investment, one should consider the possible consequences of economic inflation within the next decade. At one time, signers were protected from the effect of inflation by leases that included automatic adjustments based on Consumer Price Index data. This protection is rarely available today, so signers are generally not protected for losses due to inflation.

Consider feng shui for your home office and your commercial real estate purchases. A space that is open and not cluttered is one of the principles of feng shui that buyers like.

Before making a commercial real estate purchase, sit down and talk with your tax adviser. Not only can your tax adviser help you determine the total cost of your potential investment, but he can provide you with information about the taxes on your investment and advise you about deductions you may be entitled to. Work with them so that you can find a lower tax area.

Changing interest rates are a big threat to people who invest in commercial real estate. The current economic conditions will make interest rates go up and down without being predictable; this can be a disaster for a commercial real estate investor. Keep this in mind as you start considering your different options.

Properties are subject to a life-cycle, where they will eventually parish if not ordered and maintained. It's important to factor maintenance costs into your projections of what you'll need to spend on the property over the long term. You may have to update the wiring, or install a new roof, for example. All buildings need this kind of care. However, some may need more upkeep than others. Make sure all these repairs are included in a long-term plan for the property.

Locate a financing source prior to making any offers on pieces of commercial real estate. Speak with friends and some other investors to make a list of the greatest lenders of your area. Research the prospective lenders and choose the one that can accommodate you before you begin to scout for commercial property. By doing your homework ahead of time, you can increase the chances for being approved for the loan.

As stated initially in this article, you must have a lot of information prior to committing to a venture in commercial real estate. The intended purpose of this very article was to give you some of that knowledge, so that you may find success in your commercial real estate dealings.

NOTE: Please visit our commercial real estate secrets website for more tips and information


Commercial properties are a good investment, but they require a lot of time and efforts. The rewards can outweigh its costs, though. The advice in the following article will help you get the most from your investment.

The environment of your property is an important factor. If your building is full of hazardous waste or otherwise constitutes a threat to the environment, you will be responsible for resolving these problems, even if a previous owner caused them. Is the area around your commercial property prone to flooding? Consider the risks very carefully. There are many resources that can give you local weather patterns, flood patterns and insurance risk ratings, which can all tell you about the area you are thinking about buying commercial real estate in.

At any given time, you should place your focus on only one investment. Concentrate on one particular type of commercial real estate at any given time, whether it be office blocks or retail space, for example. Each kind of investment will require a full time commitment. Mastering one type of investment will set you up for success much faster than spreading yourself across many mediocre investments.

Add a blog to your website to develop your good reputation as a commercial real estate investor. This is a great way to introduce people to your products and services and also which properties you have available for sale or leasing.

Before you can start using the commercial property you've purchased, you might need to make some improvements. This may be simple changes such as painting or rearranging furniture. The change could be significant like moving an entire wall to work with a new floor plan. When negotiating, you should discuss who will pay for the improvements you'll have to make, and should see if the current owner will cover some of your costs.

In the beginning phases of your career as a commercial real estate investor, limit yourself to working with a single type of investment. Select the type of property upon which you wish to focus, and pay close attention to your dealings. It's better to be very good at one particular type of real estate than to be okay at a lot of different types.

You should take digital photos of the condition. Try to make sure that your pictures show the defects.

If you are looking into a commercial real estate property, always consider any investments where you can purchase a larger piece of property rather than a smaller one. It's not more work managing more units than less units, but each unit can cost less if you buy a property with more.

Make sure that you're not asking for an unrealistic price for your property. There are a number of variables that can affect the realistic value of your property.

Consider any tax deductions you might get from your commercial real estate investment. Not only are there interest deductions, but also depreciation benefits to be aware of. Investors often get 'phantom income' this is income that does not have tax attached. Find out if you will be getting this kind of income before you invest.

Take a look around properties you are interested in. Look into having a professional contractor accompany you as you take a look at the properties you've been thinking about purchasing. Use what you see in these tours to determine a fair opening offer. Evaluate counter-offers against the information you collected on your tours, and use that information to justify your own counteroffers.

You should think about what neighborhood you are going to buy the commercial real estate in. If you purchase it in a more affluent neighborhood chances are your business will be more successful, because the pockets of your potential clientele are a bit deeper. If the products and services you offer are more middle class or less affluent, then purchase in an area where there are more buyers suited to your business.

Make sure you consider size and square footage when checking out potential properties for an expanding business. Invest in property which allows your business to grow as necessary so you can avoid having to buy another property down the road.

As previously mentioned, commercial real estate is a market with a huge potential for profit. Utilize the advice given to you in this article to avoid common pitfalls, and find success in your commercial real estate endeavours.

NOTE: Please visit our commercial real estate secrets website for more tips and information

Friday, February 3, 2012


Commercial and industrial properties are always being listed on the market, but they are not highly advertised, like residential homes are. A certain level of knowledge is required to locate profitable commercial properties. This knowledge, along with other things, is necessary in order to be successful. In this article, you will find valuable tips that can help you succeed in commercial real estate transactions.
You can save money on repair costs while cleaning up the property. You have to pay for cleaning only if you are the owner of the property. The environmental cleanup, plus the waste disposal, can bring on some costly fees. Look for an environmental assessment facility that can generate a report of the commercial real estate property before buying. This can cost you a good bit of money, but it will save you in the long run.
Examine socio-economic conditions in the neighborhood you're thinking of purchasing commercial real estate in. Pay special attention to the unemployment rate, and the average income level in your property's neighborhood. If you're looking at a commercial real estate property that's close to things like a university, employment centers, or a hospital, they're likely to sell fast, and at a high value.
Have family, friends, and professional lenders partner with you to make sure you have enough cash to buy commercial real estate. Find an agreement in advance: you could give the lender a percentage of what you make, or repay lenders with fixed interest rates.
Keep your rental commercial properties occupied. You're the one who has to pay to keep the building maintained, and if no one's renting them, you're wasting your money. If you have multiple properties open, figure out why, and try to correct the issue that could be causing a loss of tenants.
Be on the lookout for commercial real estate sellers who are motivated. You can benefit from seeking these type of sellers out because they are usually motivated enough to sell, that you can snatch up a property for less than its market value. Nothing more exciting happens until you come upon the deal made available by a very motivated seller.
Bring your digital camera along, and use it. Include all the defects in the photo, such as carpet stains, or holes in the walls.
Lower the risk of default by eliminating as many things that can be labeled "event of default" as you can, prior to negotiating a commercial real estate lease. Decreasing these will prevent tenants from performing a default on the lease after your negotiations. You do not want this to happen to you.
As you view prospective commercial real estate properties, it pays to think on a larger scale. If you were thinking of buying a building with five units, realize that it's no harder managing 50 units than five. That many units still need commercial financing like the larger ones do, and the larger ones generally cost less for every unit.
Make sure you know exactly what requirements you need to satisfy before you begin your search for commercial real estate. You should list the most important things that you're looking for, such as space, restrooms, conference rooms, etc.
See to it that you're dealing with companies that care about their customers before you engage them in a commercial real estate purchase. If you don't take the time to be sure they are a good company, you run the risk of entering into a bad deal.
Posting a newsletter online, using social media, or otherwise staying in touch with previous clients helps investors remember to send new clients your way. Keep your online presence updated and active, as it will often be a good source of referrals, connections and updates from important sources.
There are many things that need to be taken into consideration when purchasing a piece of commercial real estate; location is just the beginning. A little knowledge can go a long way.

NOTE: Please visit our commercial real estate secrets website for more tips and information