There are tons of reasons why you need to invest in real estate that is commercial. At the same time, the choice to make this sort of investment must be your own, based on your own knowledge base. Your profits will reflect your level of knowledge, so never stop learning about commercial real estate. Below, you’ll find some great tips to help you start your commercial real estate career, or to add to your already wide breadth of knowledge.
Consider visiting websites that contain a wealth of information beneficial to new and seasoned commercial real estate investors alike. No one can ever honestly claim that they know too much.
Ask for the credentials of any professional you’re planning to hire as an inspector, and ensure they are experienced in commercial real estate. This should be especially noted for those who work in pest removal since there are actually a number of non-licensed people who work in this area. A non-accredited inspector could be a source of problems.
Keep your rental commercial properties occupied. If no one is paying you rent, you’ll be the one footing the bills. If you have several properties open, you should ask yourself why, and attempt to correct the issues that may be driving out your tenants.
Be sure you position yourself well when it comes to negotiating any lease for commercial real estate, you want to do things like decrease what could be considered as a default event. If you cover all the applicable issues, then you make it far less likely that potential tenants will default on their lease. A default is frustrating and costly.
If you are considering more than one property, be sure to obtain a checklist for the tour site. Don’t go any further than 1st round proposal responses, unless you let the owners of the property know. Do not be afraid to let it slip to the owners that there are other properties that you are considering. This may ensure that you get a much more viable deal.
You need to know the details of emergency maintenance procedures. Ask the landlord who handles emergency repairs in your office or building. Have their phone number handy and know how long it will take them to arrive in an emergency. Use any advice you can gather from a landlord to protect your customers with properly configured emergency plans.
Check any disclosures a potential real estate agent gives you carefully. One thing you should specifically watch out for is dual agency. This means the same agent will be representing the two parties. In simpler terms, both the landlord and the tenant are simultaneously represented by the agency. Real estate agents must disclose any dual agency. Both the tenant and the landlord must agree to accept dual agency.
As mentioned previously, numerous reasons abound for why you should invest with commercial real estate; however, each does require that you gain some extra familiarity with the subject. Take some of the above tips to heart, and you’ll soon be maximizing your investment profits.