Commercial Real Estate: Make The Right Decisions | Eric Chua - First

Getting started in the commercial real estate market is much simpler than it seems. Before you make any moves in commercial real estate there is some vital information you should know. Continue reading to gain the information you need so you can move forward with a fully formed strategy which will lead to success.

Before you begin searching the market for a new property, outline what you need. List the qualities that concern you most in a property (e.g. restroom facilities, conference facilities, number of units available, square footage, etc.)

If you are considering more than one property, be sure to obtain a checklist for the tour site. Take initial personal responses, but don?t go further without the property owner knowing. Letting the property owners know that you are looking at other properties can help, too. It could even get you a good deal.

TIP! When advertising your available commercial property, do so locally, but also regionally and even nationally. A lot of people do not think that people from out of town will want to buy their commercial real estate.

Buy property with more units. The more units you have, the easier you can spread out the wealth you are receiving from each of them. Some buyers won?t even consider properties that contain fewer than ten units, because they believe that more units means more income to be made.

If you are looking to invest in an apartment complex, be mindful of the fact that smaller communities can pose more complexity than dealing with a larger one. Due to this, a lot of field experts advise avoiding any property with a single digit number of units. This is far from a hard and fast rule however. If careful research leads you to believe a given small complex will be profitable, don?t rule it out simply because of its size alone.

TIP! When drawing up a letter of intent, try to solicit agreement on big issues first and leave smaller issues for later rounds of negotiations. The negotiations will become less tense and you will be able to better get an agreement on the more small problems.

Residential and commercial loans are vastly different from each other. For example with a commercial loan, the down payment percentage is higher than a residential one. Seeking out the greatest lenders and putting your ear to the ground about investment possibilities is a great way to possibly qualify for a commercial loan.

Don?t ever underestimate the value of the relation between you and lenders, be them private or investors. Some commercial property is never listed, but can still be sold. A tight relationship will give you inside information and knowledge about how to access more property.

Consult your tax adviser before buying your first commercial property. A tax expert can advise you on how much the property costs and what amount of your real estate income will be taxable. If you don?t want to pay high income taxes, your adviser can suggest some areas of the country to focus on where the tax rates are lower.

TIP! Try borrowing some of the tenets of feng shui for use with your properties. Two of the basic principles of feng shui, openness and a lack of clutter, are both features that are appealing to buyers, tenants, and customers.

To establish the cash flow needed to successfully purchase commercial property, you will probably need to build a network of financial collaborators, including professional lenders, friends, and family members. Come up with a contract where you have to pay back the loans either with a fixed rate of interest, or via a certain percentage of the property income.

It?s critical to have emergency maintenance contact information very accessible. Make sure to consult your landlord about emergency repair responsibilities in your building or office. Know what the phone numbers are, and know what the response time is for them. Work with your landlord to create a contingency plan in the event that an unforeseen disaster occurs; this will allow you to avoid customer service or public relations nightmares.

As you already no doubt know, smart commercial real estate investing takes time and research. Now that you have read this article, however, lack of information should not be a problem, so get out there and start investing.

TIP! When choosing a broker, ask about their experience specifically in the commercial real estate market. Make sure they are specializing in the desired area that you?re selling or buying in.

Source: http://www.maynaseric.com/commercial-real-estate-make-the-right-decisions-2

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