Buying or selling your first commercial property isn’t as tough as it may seem. You should be sure to research your options before making a move. This article contains tips to help you get more from your experience.
Take plenty of pictures of the building. Make certain that the pictures show irregularities, such as holes or bad paint on walls, carpet stains, and bathtub or sink discoloration.
Before you consider leasing or renting, look into whether or not pest control is covered in the lease. It is even more important to look into the building’s pest control policies if you are looking to rent or lease in a region where building pests are common.
The location of your commercial property is key to its value and its potential suitability for what you have in mind. You will want to consider many things, including the neighborhood that the property is located in. You will also want to calculate growth expectations by comparing similar neighborhoods. If you make an investment in real estate, it is in your best interest to ensure that your property is in an area that will still be growing in five to ten years.
Once you have narrowed your choices down to two major contenders, you should expand your decision to include the big picture. Getting the financing you need is going to be complicated whether you choose a five-unit building or a fifty-unit building. You may have a better price, figured per unit, on the larger apartment complex than on the smaller one.
Choose simple, strongly constructed buildings if your plan is to purchase real estate for the sole purpose of renting or leasing it. Tenants will be interested by buildings that look well-cared for. Such buildings also usually need fewer repairs, which is an advantage for the tenants, as well as the landlord.
If you plan to rent out a commercial property, you should do all you can to make sure they stay occupied. If you have open spaces, then you are the person who will be paying for their upkeep and maintenance. If you have many open properties, then you need to reevaluate why that is the case, and try to remedy any outstanding problems which have caused your tenants to leave.
Before you negotiate a commercial real estate lease, you should aim to decrease the things that could be considered an event of default as much as you possibly can. That will cut down on the likelihood that the tenant defaults on a lease. That is not a situation you would want to encounter.
Visit the commercial real estate properties that you are interested in. Look into having a professional contractor accompany you as you take a look at the properties you’ve been thinking about purchasing. Make the preliminary proposals, and open the negotiating table. Evaluate counteroffers against the information you collected on your tours, and use that information to justify your own counteroffers.
As you already no doubt know, smart commercial real estate investing takes time and research. This article has provided you with a good foundation for you to use in your deals, but continue to learn more and keep up with new opportunities in your area.