If you invest in any commercial real estate, you will be able to make a big profit, though you will need to be patient, and do a lot of studying and research. Many people have become successful with it by reading and applying the tips below so that they can succeed in this lucrative field.
When choosing a broker, ask about their experience specifically in the commercial real estate market. Don’t use a broker who doesn’t specialize in the type of real estate investment you’re interested in. Make sure your agreement to work with that broker is exclusive.
Learn about Net Operating Income, or NOI, a metric in commercial real estate. In order to be successful, the resulting number must be positive.
If you want to sell a property, advertise it locally and on a wider level too. Many people target their advertising to local buyers only, thinking that those buyers are their market. In fact, the interest level can expand far beyond the local scene as private investors expand their interest. These investors are searching for affordable property and may be interested in yours.
Know your needs before you even start looking for a commercial real estate. List the qualities that concern you most in a property (e.g. restroom facilities, conference facilities, number of units available, square footage, etc.)
Be aware that not all commercial brokers are alike. Choose the real estate broker who will best help you meet your needs. For example, full service brokers will work with landlords and tenants, while other brokers only represent tenants. A broker who works only with tenants should have more experience and should represent a better choice for you.
Check all disclosures of the chosen real estate agent that you wish to work with. It is important that you realize that you may be entering a dual agency transaction. In this case, the real estate agency represents both sides of the transaction. This means that the agent is representing the interests of the lessor and lessee simultaneously. If there is a dual agency, everyone should be honest about it and find an agreement.
As a new investor you should focus on one area of investment only. Begin by selecting which type of commercial buildings you would most like to purchase and then devote all of your time to those types of properties. It is better to do your best at one type than to be average at many types.
Consult with your tax adviser prior to purchasing any property. A tax expert can advise you on how much the property costs and what amount of your real estate income will be taxable. Let your adviser help you find a building that won’t require you to pay too much in taxes.
If you put the advice you just read to use, you will have a huge advantage in the commercial real estate investing market. If you use the tips provided in this article, you will see why so many people are successful at commercial real estate, and you can start to reap the rewards.