subject: Solid Advice For Locating Money Making Commercial Real Estate [print this page] A lot of people have achieved success in the commercial real estate market. However, no quick and easy blueprint for doing so exists. What is needed is industry-related knowledge, experience, and much hard work. Read the advice provided in this article to find out how you can be successful with commercial real estate.
If you are viewing more than one property, you may wish to create a checklist for each site. Certainly take down initial proposal responses, but don't get into anything further without informing the property owners. Consider allowing it to slip out that you are also looking at other properties. It can also get you a great deal on the property you're touring!
Before paying any agent, check his or her disclosures; these can tell you a great deal about the agent's character and ability. There is a possibility of a condition called dual agency. Your real estate agency will represent each side of the transaction. This means the broker represents you and the landlord during the transaction. You and the other party should both agree if dual agency is to be okay.
Before purchasing commercial real estate, consider the area in which it is located. Environmental waste, from a previous owner, could become your responsibility to clean up. Are you thinking about buying property in a flood-prone area? Think again! If you need information about potential environmental problems in an area, contact local environmental protection or assessment agencies.
If you are considering apartment complexes as your next investment, remember that smaller complexes may be more trouble than they are worth. In fact, many experienced investors recommend only investing in properties with 10 or more units. Don't take this as a hard-and-fast rule, though. Your research might reveal that a five-unit property is a true gem.
Keep your commercial property occupied to pay the bills between tenants. If you have any open spaces, then you are losing money. If you have multiple unoccupied properties, try to determine the reasons why, and rectify the problems that are keeping tenants from renting the spaces.
Your first step is to find financing. Don't make the mistake of thinking that commercial lending is the same as residential lending. They can be better for you as a borrower. While you do need to put more money down on a commercial loan, you're fully protected from personal liability and are permitted to borrow some money to put towards your down payment.
Consider using the principals of feng shui in the interior design of your commercial investment properties. Two of the basic insights of this approach, removing clutter and emphasizing open space, are sound design principles that make a property more attractive.
If you know how to go about it, you can find success with commercial real estate. Reread this article as many times as necessary to help you pick up new suggestions and apply them when dealing with commercial real estate. Always continue learning about commercial real estate and finding new ways to improve your business. As you gain a higher level of experience and expertise, you will find it easier to be successful, and your profits will surely grow.
