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

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