Things You Should Know About Commercial Real Estate
27/06/2012 09:39
There are always industrial and commercial properties, but these types of properties do not receive preferential listings that are given to residential property. You need to properly navigate the market to find them, and the tips in this article will help you locate these commercial properties.
Take some time to visit websites that are devoted to commercial real estate. These sites have lots of information for both new investors and seasoned professionals. You can never know too much when it comes to commercial real estate, so never stop looking for ways to obtain more information!
When you are constructing a letter of intent, make sure that you keep it concise by focusing on larger issues first. Save the smaller issues for future negotiations. Doing it this way will allow the negotiations to be less intense and get them to agree faster.
If you are considering purchasing a property with multiple units, check for the chance to go a little larger than you would first think. It doesn't take a lot more work than a smaller location, and it turns a greater profit over time.
Check all disclosures of the chosen real estate agent that you wish to work with. Understand the meaning of dual agency. In this case, the real estate agency represents both sides of the transaction. In other words, the agent is representing both you and your landlord in the same transaction. Both parties need to clearly understand that the transaction is being handled by a dual agent and consent to this fact.
You have to ensure that the terms on rent roll and pro forma match up. If you do not look over these key terms, you could find a term that was not considered in the rent roll, which could cause a change in the pro forma.
Have a professional do an inspection of your commercial property prior to you listing it as available on the market. If they find anything wrong with the property, you should have it fixed immediately.
You should take numerous, high-quality photographs of the property. Include all the defects in the photo, such as carpet stains, or holes in the walls.
Get clear and precise square footage numbers for any space. In commercial real estate, square footage can be reported in usable square footage only, or the total square footage which would include walls and unusable space as well. It's a good idea to measure using both methods to avoid delays in the process.
Ask a broker firm how they make their money before you start working with them. The ideal response is that they are able to balance your best interest with their own. You should know exactly how they will benefit from any transaction they take care of on your behalf.
You should put an ad out for your commercial real estate when it is on sale, do it locally and out of town. Many people make the mistake of assuming that only local buyers will be interested in buying their property. A lot of investors buy property that is not where they want it if it is a good enough price.
Finding your optimum commercial real estate property will only see you half way through this process. A little information goes a long way.