Commercial real estate can be a double sided sword. Although you can make a lot from it, it is also possible to lose money a lot of money, also. Try to choose wisely when considering purchasing a property, and thinking about how to fund it. Read on to find some ideas to help you make sound decisions when it comes to property purchases.
When renting or leasing property, be sure to set up some form of pest control. Talk about pest control with your agent if the area is known for rodents and bugs.
Research your prospective brokers to see how experienced they are with the commercial market. Verify they have experience in working with the type of properties you are interested in. Once you find the broker you want to use, sign an exclusive agreement.
If you have the intention of offering your commercial real estate for rent, look for buildings that are simple and solid in construction. These types of buildings attract tenants more quickly than other buildings, as prospective tenants know that the building is less likely to have maintenance issues. These types of buildings are easier to fix for everyone and they might not need as many fixes.
Try to decrease potential events of defaults before negotiating a lease. So a tenant can’t default on a lease they sign with you in this type of situation. You, of course, would not desire this to occur.
Take a tour of any property that you are interested in. It’s a good idea to hire a building contractor to come with you and do on-the-spot inspections of properties you are considering. Open negotiations after making your offer. Evaluate counteroffers against the information you collected on your tours, and use that information to justify your own counteroffers.
Make a checklist to compare details when looking at several properties. Determine which properties initially make the cut, but once you do, let those property owners know. Do not be afraid to let it slip to the owners that there are other properties that you are considering. This could help you score a better deal.
Establish what you need before searching in 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.)
When hiring a real estate agent, read the disclosures completely before signing a contract with a realtor. Some agents work for a dual agency. Dual agency refers to a situation in which a real estate agent represents both the landlord and the tenant in a commercial transaction. This means the agency works for the tenant and the landlord at the same time. The fact that the agent is representing both parties must be disclosed to everyone involved and those parties must sign off on it.
As previously stated, commercial real estate isn’t a slam dunk. It takes a large monetary investment, followed by effort and time, to make a success of a commercial real estate investment. You will also have to take some risks.