Commercial real estate requires a keen eye for investment and a boatload of patience in order to be a profitable venture. People just like you have learned how to successfully invest in real estate; read this article to learn how to get started.
Take digital pictures of the place. Your pictures should portray any damage or defect in the property. Common things you should look for include any cracks or holes in walls, and damages to the carpeting.
Take note that commercial transactions take more time, they are complex and they take more involvement than home purchases are. If you want things made easier, you might want to change what you’re getting yourself into. Remember that the time and efforts you are investing will pay off.
When choosing brokers with whom to work, find out the amount of experience they have dealing with commercial properties. It is important that their experience fall in line with your buying and/or selling goals, so make sure to ask what their specialty is. Allow the broker to acknowledge your wish for an exclusive agreement between the two of you.
If you’d like to rent out the properties you purchase, it’s best to buy a simple building with solid construction. Rental spaces that appear sturdy and well-maintained tend to attract tenants more quickly. Buildings like these are also easier to maintain, for both owners and tenants, since repairs are going to be required less frequently.
Make sure that any property you’re considering purchasing has access to all the utilities you’ll need. The utilities you will need for your business go beyond electricity; you will also need water, sewer and gas, as well.
Before negotiating a lease with a commercial tenant, work on narrowing down the list of things that would constitute default. Your tenant will be less likely to default on the lease if you do this. This is in your best interest.
Take a tour of properties you are considering. It may be a good idea to take a professional contractor with you when you check out properties you are interested in purchasing. Make the preliminary proposals, and open the negotiating table. Make sure you evaluate any counteroffers well enough before you make any purchasing decisions.
Make a checklist to compare details when looking at several properties. Take this list with you as a reference when visiting other properties, and use it when speaking with the property owners. Don’t fear telling the owners that you might be interested in other properties. This could help you score a better deal.
Establish your goals and needs before you start looking at properties. Write down the things you like about the property, important features are office numbers, how many conference rooms, restrooms, and how big it is.
Put a high priority on emergency maintenance needs. Find out from your landlord who to contact for emergency repairs, such as plumbing accidents. Keep their numbers updated, and know how long it takes them to arrive on average. Your landlord should be able to provide you a list of emergency contacts so that you can map out a safe and well organized emergency plan, in case an emergency happens during normal business hours.
Read the fine print about your real estate agent. It is important that you realize that you may be entering a dual agency transaction. In this situation, the agent will represent the buyer and seller. In simpler terms, both the landlord and the tenant are simultaneously represented by the agency. Dual agency must be disclosed by both parties and they need to agree to it.
If you follow the advice you have learned in this article, you will be well on your way to a great start. When you take the time to use the advice that has been discussed, you can enjoy a lot of the same rewards as others have who learned how to make money from commercial real estate.