There’s nothing like a collection of useful tips to get someone started dealing in commercial real estate. The tips that follow will help put any beginning real estate investor on the road to becoming a pro.
In order to learn more about the commercial real estate market, find a website that caters to investors of different skill levels. It’s not possible to be too knowledgeable, so keep researching new investing strategies.
You should learn how to calculate the (NOI) Net Operating Income of your commercial property. Success is about staying in the green.
Always check the credentials of the inspectors you hire. There are more than a few people working in without certification in the pest removal and insect fields, so make especially certain to ask for proof of certification from them. This will avoid bigger problems in the post-sale.
It is important that each property offers unhindered access to utilities. In addition to any needs specific to the business, you will surely need to have gas, electricity, sewer and water services, and so on.
When you’re writing letters of intent, try to keep it brief by agreeing with the bigger issues initially and let the lesser issues be resolved at a later time. By coming to agreement on the larger issues, it will make the negotiations go much easier.
One of the most important things you should be aware of is emergency maintenance. You should ask your landlord who is in charge of handling emergency repairs. Learn the phone numbers and response times. Protect your employees, customers, merchandise, and even your reputation by having a good emergency plan in place that will allow you to handle unexpected events without chaos.
Real estate brokers for commercial properties have different areas of expertise. So-called “full service” brokers represent both tenants and landlords, while there are other brokers that work exclusively with tenants. If you intend to rent rather than buy, retaining the services of the latter type of broker may benefit you, as tenant-only brokers know what works when representing tenants.
If you are thinking about hiring any real estate professional, read over all their disclosures. One thing you should specifically watch out for is dual agency. In this case, the agent is two-faced: she is representing both parties to the transaction. This means the real estate agency will work as the landlord and the tenant. Dual agency is something that should always get disclosure, and both parties involved should be in agreement with it.
An honest broker should be willing to answer questions about how they earn their money. They should likewise be honest if this creates a conflict of interest in their relations with you. It’s obvious that real estate agents stand to benefit by selling property to you, so it becomes important that you deal with only an honest broker.
Hopefully, this article has provided you with a good base of knowledge upon which to build your successful endeavor in the commercial real estate market. With the collection of tips in here that were constructed in order to help you build on your selling and buying skills, you can become that much more successful with commercial real estate.
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