Locating the correct kind of commercial real estate to open up a business can be extremely hard if you don’t know where to search. Take the time to read this advice.
If you have found the right commercial property for your needs, read the lease in its entirety prior to signing it. There are many dishonest people out there that may add additional covenants into the lease without your knowledge. By reading the lease in full, you will be protecting your organization from potential problems in the future.
Be clear about the square footage available. Two different measurements are commonly used in commercial real estate. One is a measurement of the usable square footage based on the available square feet based upon space that can be used by the business. The other measurement is total square feet, which will include walls and spaces that cannot be inhabited. It’s important that you know both measurements for any property on your short list, as this will affect what you offer for the property.
If you are writing a letter of intent, take it easy. Go for agreements on the bigger problems at first, then get to the smaller issues later in the negotiations. This will diffuse tension during negotiations and will facilitate compromise on the minor issues.
Locate a financing source prior to making any offers on pieces of commercial real estate. Communicate with everyone in your network including friends and fellow investors to come up with a brief list of the preferred lenders in your region. Do your research and pick the lender who will work best for you, before you even start to look for a property to purchase. It will be easier to qualify for your loan when you have all the details organized in advance.
There are many benefits to building a personal relationship with your area real estate brokers, lenders and other investors. Many commercial real estate is bought and sold without ever being on the market. Networking far and wide will keep you up-to-date on what’s going on in the industry and also make you privy to great deals.
Borrowers have to order appraisals with commercial loans. It is not unusual for the bank financing your investment to refuse to accept any other appraisal. Order it yourself to cover your bases.
Writing a blog on the Internet, ideally on your own website, is a great way to prove your expertise to others. This can, in turn, increase the exposure of the property you are selling or leasing.
Put your energy toward one investment at a time. Whether your investment choice is retail, land or rental buildings, choose one arena of investment to focus on exclusively for now. You can’t be successful if you try to focus on more than one type of real estate investment at a time. Choose one type of investment and put all your attention on making it successful. It is a lot better to master one type of investment that to be mediocre with many.
If you are hunting among multiple properties, make a checklist for touring sites. Take initial personal responses, but don’t go further without the property owner knowing. There is nothing wrong with hinting that you have other properties in mind. This may provide you with more room for negotiation.
It is essential to develop a list of emergency maintenance service providers. Ask your landlord who is in charge emergency maintenance requests for the building. Know the phone numbers, and be aware of their response time. Work with your landlord to create a contingency plan in the event that an unforeseen disaster occurs; this will allow you to avoid customer service or public relations nightmares.
As you comb through possible brokers, search for those who have extensive experience in commercial markets. Make sure that they are experts in the area in which you are selling or buying. Most brokers will require you to have an agreement to work exclusively with them.
Locate the right financing first. Don’t make the mistake of thinking that commercial lending is the same as residential lending. In many ways they may be better than a residential loan. While commercial loans generally require a more significant down payment, lenders are usually more flexible about where or from whom you get that down payment.
Every prospective real estate purchase should include thorough onsite inspections; it is equally important to verify the inspectors’ credentials. This is even more important for those who deal in pest removal, as many of them work without accreditation. This can help you avoid headaches after the sale.
With the information you just acquired from this article you should have learned good tips you can apply when it comes to selling or buying commercial property. Use this advice to remain informed.
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