There are always industrial and commercial properties, but these types of properties do not receive preferential listings that are given to residential property. The advice presented in the following article will enlighten you on how to find your way through the real estate market to locate these industrial and commercial properties.
Use a digital camera to document the conditions. Make certain that the pictures show irregularities, such as holes or bad paint on walls, carpet stains, and bathtub or sink discoloration.
If inspections are included in your real estate transaction, as they usually are, make a request to see the inspectors’ credentials. Always check the credentials of workers in insect and pest control as many of them aren’t licensed. You’ll have less problems after the sale, as such.
Confirm that basic utility services are already situated at the commercial property. Every business has unique requirements, but for most, electric, water and sewer access will be required.
Prior to negotiating with the lease of your commercial real estate, try to decrease anything that could be a default as you can. This will lessen the possibility of a lease default by your tenant. You definitely don’t want this to occur.
When advertising your available commercial property, do so locally, but also regionally and even nationally. Many make a mistake in assuming that the only people who want to buy their commercial real estate property are those who are local buyers. Many private investors are willing and able to purchase properties outside their immediate community if the price is right.
Go on a tour of all potential properties. Consider going with a contractor when you are looking at places you want to buy. Put forth your initial proposals, then open the table for negotiations. Evaluate and reevaluate the counteroffers before making any kind of decision one way or another.
When you are writing up the letters of intent, keep it simple by going for agreement on the larger issues first and let the smaller issues wait for a later time in the negotiations. The initial negotiations will be less tense and the smaller issues will seem less important later.
You should acquire tour site checklists when you’re examining several properties. After you collect your first proposals from all the property owners, let them all know that you’re looking at other properties before you make your decision. Don’t hesitate to tell a property owner that you’re considering other properties as well. Most property owners won’t be upset or angry; they expect you to be looking at more than one property. This may help you by creating a sense of urgency on the seller’s part.
Have a list of goals on hand before you start searching for commercial real estate properties. Identify which features in a commercial property are high value to you, and make a list. This can include the number of floors, units, square feet, the building layout, and anything else that is important to you.
Put a high priority on emergency maintenance needs. Talk to the landlord about who does emergency repairs for your building or office. Be sure to have emergency numbers on hand, and remember to check about a quoted response time for maintenance emergencies. Use the information from your landlord to prepare an emergency plan to protect your reputation and customer service for the times when your normal business flow is disrupted.
When you are first starting out in real estate investing, the best thing is to keep it simple and start with one investment strategy at a time. Select one type of property that appeals to you, and devote your undivided attention to it. It is preferred to excel in one type instead of being mediocre in many types.
Before initiating a purchase, be sure that you are negotiating with a customer-focused company. If not, you may eventually pay dearly for an easily avoided mistake.
Before you enter the market, do your best to make a mark online and establish your presence. Design yourself a website, Facebook page or LinkedIn profile. Make sure that you use search engine optimization on your website so that people can find you easily. This will help people find your site more easily.
Look for the motivated sellers. You have to look for them, especially those who need to sell below the market value. When you find the right deal, it really helps if the seller is motivated to sell quickly.
Remember that you need to consider your investment’s future needs when setting rent. Once you sign a lease with a tenant, you can’t easily change the rent amount, so make a sound decision before writing the lease. You need to calculate how much income you need to allocate to your bills, and then how much profit you’ll want on top of that, before you start the search for a tenant. By deciding on your rent in advance, you can ensure that you’ll reach your investment goals once you get some tenants in place.
Clarify how much space is available in square footage. The square footage of a commercial property may represent one of two things; it may represent the usable space of that property, or it may represent the total square footage of that property. Find out what the square footage of the property you are interested in, is measured.
When it is time to pay for commercial real estate, it is important to keep financial statements for both you and your business on hand. If you don’t have them, you won’t be able to prove fiscal responsibility to the lenders, and it’s likely that you won’t get the financing you need.
Finding the proper commercial property is just half the battle. Gaining even a little bit of knowledge about commercial real estate helps you make better decisions.