Investing in commercial properties is not the same game as home buying. Here you will find some effective ideas and tips to help you get started in your commercial real estate project.
Regardless of whether you are buying or selling the property, it is in your best interest to negotiate. Fight for the best price possible and make sure that all parties involved listen to you.
Before you jump into a commercial real estate deal, you want to get a lay of the land first. This means considering and examining the general income levels in the area, how high or low unemployment rates are, and looking at the hiring practices of employers within the vicinity of where you intend to invest. If the building is near certain specific buildings, including hospitals, universities, or large companies, you might be able to sell it faster and for more money.
Before you consider leasing or renting, look into whether or not pest control is covered in the lease. This is especially true when renting in an area that has a lot of bugs or rodents, so be sure to talk to the rental agent about some pest control policies.
The commercial space you want to rent may need some changes before you can move in. The space may be due for some regular maintenance, or it may need something as simple as a new coat of paint. The change could be significant like moving an entire wall to work with a new floor plan. Plan on negotiations with the owner of the property to see if all, or part, of the costs can be covered by said owner.
Think larger when you’re thinking about two commercial properties that are viable. Regardless of whether the property you decide on has twenty units or fifty, the process of obtaining financing will be the same, and in both cases will require substantial effort. Just think about it as the more you buy the lower you are paying per unit, so you save more in the end.
Once you are sure which commercial property you want to choose, you are by no means finished. There is still so much more to do, and to learn. A little knowledge can go a long way.
