To successfully conquer the commercial real estate industry, you need patience, knowledge and instinct. The advice in this article has helped many first-time investors like yourself turn a profit in the tough commercial real estate market.
Bugs and rodents are always looking to ruin your property, so factor pest control into your business strategy when renting commercial property. If you are renting in an area that is known to have a lot of rodents, pests, or bugs, then ask your agent what the policies on pest control are.
The Internet contains a lot of information for those interested in investing in real estate, whether they be experienced investors or novices. You can never know too much when it comes to commercial real estate, so never stop looking for ways to obtain more information!
If you have two commercial properties on your short list, you should buy the larger one, if at all possible. Regardless of which way you choose, coming up with the capital is a common factor, so often times it will be be worth digging a little bit deeper to get the larger property in order to maximize your long-term profits. The concept here is the same as any other situation where you are purchasing multiple things. The more you purchase, the less you will pay for each unit.
When you are picking a broker, make sure you know if they are experienced within the commercial real estate market. Make sure that they are experts in the area in which you are selling or buying. You need to get into a type of exclusive agreement with your broker.
If you are purchasing commercial real estate for rental purposes, look for structures that are uncomplicated and sturdily built. Tenants are more likely to move in when they know the property is well taken care of. This type of building also has the advantage of requiring less maintenance, an attractive feature for tenants and owners alike.
Try to decrease potential events of defaults before negotiating a lease. This lowers the chance that the person renting will fail to uphold their end of the lease. You, of course, would not desire this to occur.
If you are touring several properties, be sure to utilize a checklist to make things easier for you. Make sure to advise the property owners when you want to take the next step past the first proposal responses. You should not have any hangups about letting the owners know that you are still deciding on other properties. This may help you snag a better deal, ultimately.
Make sure you try to read any disclosures for your agent. Remember that a dual agency could occur. In this case, the real estate agency represents both sides of the transaction. This will mean that the agency will work with the landlord and tenant simultaneously. Real estate agents must disclose any dual agency. Both the tenant and the landlord must agree to accept dual agency.
If you are new to commercial real estate investing, you should investigate any tax benefits that you could be eligible for. Investors receive interest deductions on top of depreciation benefits. Investors often get ‘phantom income’ this is income that does not have tax attached. Learn about phantom income and taxes on commercial income before you invest in your first property.
By using the advice from this article, you have begun the process of becoming knowledgeable in the commercial real estate market. When you take the time to use the advice that has been discussed, you can enjoy a lot of the same rewards as others have who learned how to make money from commercial real estate.