Being the owner of a commercial property has the potential of being a really rewarding and exciting venture, however, it does take a lot of work to get the most out of it. This can leave you wondering where you should even begin. Determining a good course of action in commercial real estate can be quite a challenge, but the following article will guide you through some of the confusion and hopefully, to a successful investment.
Do not hire a broker without finding out more about their past experience within commercial property. Make sure they have their own expertise in the area of your curiosity or it could be an endeavor wasted. Most brokers will require you to have an agreement to work exclusively with them.
Thoroughly tour every potential property. Definitely consider having a professional contractor go with you when looking at potential properties. Begin negotiating and the process of offers and counter offers. Before you decide whether you want to accept an offer or not, be sure to carefully evaluate all counteroffers.
Use your digital camera to take pictures of the property. In the “before” photos, especially, make sure that the pictures clearly show defects such as stains on the carpet, discolorations in the tub and sink, and holes in the walls.
When considering an investment, one should consider the possible consequences of economic inflation within the next decade. Many leases used to include clauses to protect investors from inflation that would adjust the lease according to the CPI (Consumer Price Index). This is not the case today, leaving you completely vulnerable to inflation losses.
Line up a number of financial partners, including friends, family and professional lenders, to make sure you have the wherewithal to buy commercial real estate. Find an agreement in advance: you could give the lender a percentage of what you make or repay lenders with fixed interest rates.
Regardless of whether you are buying or selling the property, it is in your best interest to negotiate. Protect your interests by standing up for yourself regardless of who is on the other side of the table. Negotiate a fair price rather than accepting one that is too high or too low.
When thinking about financing for properties of a commercial nature, it is important to go over paperwork with a reputable real estate attorney. If something suddenly comes up and causes problems you will need to have someone on your side who can clear you of any wrong-doing.
As previously discussed, successfully purchasing and managing commercial properties takes knowledge, hard work and time. Perseverance is also a necessity in this business. Apply the tips from this article, and you will be one step closer to purchasing a commercial property that is the perfect fit for you, and yourShare