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

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