Commercial real estate investment has an enticing reward potential, however, a considerable amount of homework is required on the part of any would-be investor. A lot folks were just like you before they became successful real estate entrepreneurs because the took the time to learn and apply the ideas and insights that are shared in this article.
Negotiate, whether you are the buyer or the seller. Protect your interests by standing up for yourself regardless of who is on the other side of the table. Negotiate a fair price rather than accepting one that is too high or too low.
Before you sign a lease, find out about pest control. If you are renting a space that has known vermin problems, be sure to find out exactly who is responsible for pest control.
There are many websites available that offer information to investors; therefore, learn all you can before searching for commercial property. No one can ever honestly claim that they know too much.
Commercial transactions are significantly more time-consuming, complex and involved than the home-buying process. Understand, however, that the intensity and duration of the process is necessary to achieve the higher return on your investment.
When selecting a broker, find out the amount of experience they have with the commercial market. Look for brokers who specialize in the type of commercial property that you’re purchasing or selling. Most brokers will require you to have an agreement to work exclusively with them.
You should try to understand the NOI metric. In order to be successful, the resulting number must be positive.
Check out where the utility hook-ups are on any commercial property. The utilities you will need for your business go beyond electricity; you will also need water, sewer and gas, as well.
Be sure to have a professional building inspector go through your property before you put it up for sale. If there is anything wrong with your property, have it fixed right away.
Take tours of properties with purchase potential. Definitely consider having a professional contractor go with you when looking at potential properties. Open negotiations after making your offer. Before making any sort of decision after a counter offer, evaluate it once and then evaluate it again.
A letter of intent should be simple to begin with, covering only the larger issues. Once an agreement on those terms are made, you can begin addressing the smaller issues. It will be less stressful to negotiate and can also make it easier to come to terms on the smaller things as well.
Emergency maintenance is something you must include on the have to ask sheet. Speak with your landlord, and ask who is in charge of emergency repair work at your home or office. Keep the phone numbers in a convenient place, and know how long it will take them to respond if needed. 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.
The above articles should be of significant help when you begin planning your real estate investing goals. If you want to share in the rewards of a successful investment in commercial property, be sure to make good use of what you have learned from this article.