The probability for gain in commercial real estate is generally higher than in residential real estate. It can be difficult to find good opportunities. By following these tips, you will be able to understand the variables inherent in commercial real estate dealing. Therefore, you will be better able to make great deals.
Read the disclosures of the real estate agent you are planning to hire. 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. In effect, while you are paying the agency, they also work for the opposite side; if you are a prospective tenant, for example, the dual agency represents the landlord, as well. Dual agency must be disclosed by both parties and they need to agree to it.
Think about the environment around your property. You will have to clean up environmental wastes from your building. Is the area around your property prone to flooding? If so, think again. Try contacting local environmental agencies that can give you important information regarding the area you?re thinking about buying a property in.
Purchase a piece of property with multiple units. With each extra unit your property has, your investment will pay off even more. A lot of buyers won?t give a first glance to properties with nine or less units, and most buyers assume that more units equates to more money making potential.
One of the biggest differences between a residential loan and a commercial one is the size of the down payment you?re required to make. Shopping for the best lending rates and looking at many investments is the surest way to find a property that matches your goals and budget, which makes obtaining the loan needed much more likely.
Be aware that with a freshly written lease, tactics and rent considerations will be crucial to your investment?s future. Decide on a rent amount before your first meeting with prospective new tenants. Setting your goals will allow you to confidently deal with your commercial property.
If you plan on renting out your commercial properties, find simply and solidly constructed buildings. Because it is apparent that these types of structures have been kept in good condition, it greatly increases the chances that tenants will be quick to rent the space. This sort of building is virtually maintenance-free, so there will be fewer headaches for owners and tenants.
You should have a better understanding of real estate by now. However, you can?t succeed if you stick rigidly to the rules outlined above. Be open to changing market conditions and think quickly to make the best investment decisions for yourself. This way, you will be ready to jump on opportunities as soon as they arise so you can get the best return from your investment.
Sim Sadler is a real estate expert and has been buying and selling commercial real estate for over 25 years, through every market you can imagine.
Source: http://www.simsadler.net/stay-on-top-with-these-commercial-real-estate-tips/
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