Commercial real estate can be a tricky field to master. You can make tons of money, but you can also suffer financial ruin. You not only need to choose your properties wisely, but also your funding sources. This article is packed full of tips that will help you to navigate the commercial real estate market.
Whether buying or selling, negotiate. Be sure that your voice is heard so that you can get yourself a fair price on the property you are dealing with.
Be prepared to put a large amount of time into a real estate investment right from the start. Finding a good opportunity, going through the transaction and making any necessary repairs to the property takes time. Do not give up because this process takes too much of your time. Your patience will eventually be rewarded through profits.
If you are hesitating between different properties, buy the larger of the two. The difficulty in securing financing doesn’t increase linearly with the size of the building you are buying. Generally, it’s like buying in bulk; the more you buy, the less each unit is.
When selecting a broker, find out the amount of experience they have with the commercial market. Be sure that they specialize in the area that you are buying or selling in. Also, consider entering into an agreement that will be exclusive between you and that broker.
You should learn how to calculate the (NOI) Net Operating Income of your commercial property. In order to succeed, you should focus on keeping your figures in the positive.
Check out where the utility hook-ups are on any commercial property. Your particular business might need additional services, such as cable, but at the minimum there should probably be sewer, water, phone, electric and gas.
As previously mentioned, commercial property isn’t a free money source. You will need to invest considerable time, money and effort to have a good shot at profitability. However, with all those things, you may still lose money.
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