Even though there are many commercial properties listed every day, you will not see them in the preferential listings, as you would homes. You must know where to look, and this article will give you some tips so that you know just the right places to find good commercial properties.
Don’t make any big real estate purchases until you’ve evaluated the unemployment rates, income levels, and expansion rates of the area. Property that is located near a large business, a college, or a hospital has better resale value and will often sell easier.
Take photos with a digital camera. Be sure that you have any and all defects present on the pictures you take (things like holes, discoloration, or spots).
Location, location, location is important to consider. For example, consider the surrounding area and local neighborhoods. Don’t forget to check out similar areas as well, in order to see how other neighborhoods are growing economically. Since you will likely still own the property in ten years, you want it to be located in an area that is likewise still desirable in ten years.
If you are hesitating between different properties, buy the larger of the two. Whether it be a twenty or ten unit apartment complex, you want to get adequate financing to back you up. Also, purchasing more units is like buying in bulk. The more you buy, the cheaper each unit will be.
The Net Operating Income, or NOI, is one metric you need to master for success in commercial real estate. Staying in the positive is what you need to do to succeed.
See to it that the price that you ask for in real estate is realistic. A wide variety of factors exist that influence how valuable your lot actually is.
If you plan on renting out your commercial properties, find simply and solidly constructed buildings. These will attract potential tenants quickly because they know that these properties are well-cared for. This sort of building is virtually maintenance-free, so there will be fewer headaches for owners and tenants.
Make sure you’ll be able to access power, water and other utilities for your commercial property. The property must have access to electric, water, sewer and maybe gas for it to be a viable commercial real estate purchase.
In the earliest stages of negotiating your lease, it is in your best interest to ensure that only a few conditions are capable of constituting acceptable means of default. So a tenant can’t default on a lease they sign with you in this type of situation. This is something that you don’t want to happen under any circumstance.
Be sure to have a professional building inspector go through your property before you put it up for sale. If anything turns up during the inspection, you should immediately address the problem.
Once you are sure which commercial property you want to choose, you are by no means finished. There is still so much more to do, and to learn. Remember, a little knowledge can really help.