Industrial property and other commercial properties are going up on the market all the time, but it does not have the same kind of listing as residential and the pricing is completely different than residential.
Take plenty of pictures of the property. Make sure the picture shows the defects (such as spots on the carpet, wall holes and bathroom discolorations.
Don’t jump into any hasty investment decisions. You may soon regret it when the property does not what you needed after all. It could be a year for the right investment to materialize in your market pay off.
Location is a very important with commercial real estate. Think over the neighborhood your property is located in. Look at similar neighborhoods to determine the likely growth of areas that are similar. You need to be reasonably certain that the community will still be decent and growing 10 years from now.
There are many things that determine the value greatly.
Make sure the property you are interested in has access on any commercial piece of real estate. Every business’ needs are different, but for most, electric, water and sewer access will be required.
Take a tour of properties with purchase potential. Think about having a contractor that’s a companion to help evaluate the property. Make the preliminary proposals, and get into the beginning stages of negotiation. Before you choose, be sure to carefully evaluate all counteroffers.
When you write your letters of intent, start off by dealing with the larger issues, then addressing the minor issues later in the negotiations.
If you are checking out more than one property, make sure that you take a site checklist with you. Take this list with you as a reference when visiting other properties, but do not go any further than that without letting the property owners know. Do not be scared to let the owners that there are other properties that you are considering. It could even get you a better deal.
Have a list of goals on hand before you start searching for when it comes to commercial real estate properties. Write down what features are most important to you when you look a piece of property, such as number of conference rooms, offices, restrooms and how much square footage.
You need to know how to get in touch with emergency maintenance. Have the phone numbers on speed dial, and know how much time it usually takes for repairmen to arrive.
Build an online presence for yourself prior to stepping into the market.The idea is for people can find out who you by just entering your name into a search engine.
Real estate pros can recognize a solid investment immediately. They have also developed a good feel for what types of deals are riskier than others, are good at calculating risk, and they are good at knowing when their financial goals align with the properties in question.
Always be on the lookout for sellers who are motivated to sell. You will have to actively find them, particularly the sellers who are willing to sell for less than the market price.
However, each case has different issues, and determine what the best investment is for you.
Don’t enter into discussion with a possible renter without knowing your rental fee structure. This will let you reach your goals and turn your investment.
Be clearheaded about the correct square footage.
When going into commercial real estate deals, make sure you obtain a good attorney that will explain all details to you. If the deal goes south for any reason, you’ll want the best lawyer working on your side.
Know your business needs before shopping locations. You should be aware of the exact specifications you will need for your ideal office space. If you intend to have company growth, you will clearly want to purchase excess space, as doing so in a low market can yield savings later.
Talk to other people and friends to come up with a list of local lenders who are trustworthy. Research prospective lenders before purchasing property, before even selecting a property. Taking some time needed to line up things properly can make the difference in loan qualification.
Find out how the company you are working with measure results. Ask how they will make determinations regarding space requirements, what criteria they use to vet potential properties and how they intend to get you the best price. Understanding these things before signing will be a wise decision.
Don’t underrate the importance of your relationship with private lenders and investors when you’re in the market to purchase commercial property. For example, many commercial properties that are sold are unlisted, so having a lot of people in your network will increase your know-how and allow you to get the inside scoop on great deals.
This can help you have for sale or even those who will lease space.
Set up contracts which either allow you to repay the loans via a fixed interest rate, or possibly exchanging their money for a slice of the property income.
Interest Rates
Interest rates which are on a major threat to commercial real estate. The economic conditions today makes interest rates go up and down unpredictably, so it’s likely that an investor who waits too long to close a loan could end up having to pay much higher rates. Keep this in mind during your comparison shopping, and consider the long term options that you have.
Finding just the right commercial real estate property is the first half of the endeavor. Remember, a little knowledge can really help.