January 30, 2013
What You Need To Know About Renting Commercial Space
There are a multitude of reasons why commercial real estate might be a good investment choice for you. You will have your own personal reasons and they should be based on the education you have. When it comes to commercial real estate, the more knowledge you have, the larger amount of money you will make. The strategies outlined in this article will help you get off to a good start in commercial real estate, and even experienced investors may learn a thing or two.
Be extra careful when inquiring about a commercial property’s square footage. The square footage of a commercial property may represent one of two things; it may represent the usable space of that property, or it may represent the total square footage of that property. It’s a good idea to measure using both methods to avoid delays in the process.
When selling a property, you should make certain that whatever price you set is realistic. Different variables can have an impact of the value of a lot.
Make sure you have enough cash flow available for you from family, friends and any professional lenders accessible to you. Contracts should be devised that either provide you with a fixed rate of interest on the loan repayment, or provide them with a percentage of what you make from the property.
When interviewing potential brokers, ask them to tell you about their experience level with the type of commercial investments you are interested in. Make sure that the agent has the proper expertise with the type of real estate purchase or sale you are looking for. Make sure your agreement to work with that broker is exclusive.
In order to learn more about the commercial real estate market, find a website that caters to investors of different skill levels. Having a great base of knowledge will give you the tools to complete every part of the buying process with confidence, leading to solid decision making.
When dealing with commercial real estate, it is important to retain the services of a lawyer with a high level of expertise. You should have your lawyer review everything related to the properties you are involved in. If something happens out of the ordinary with your endeavors, you’ll want the best lawyer working on your side.
Make sure you always remain cool, calm, and collected when you begin to look for commercial real estate. Don’t enter into any investment opportunity without doing the proper amount of research. If the property isn’t really what you want, you will regret your haste. You may have to wait months or even years to find the ideal investment.
Educate yourself on the meaning of net operating income (NOI), a term associated with commercial real estate used for investment purposes. In order to be successful and stay profitable, watch this number closely, and take steps to make certain it does not fall into the negatives.
Bugs and rodents are always looking to ruin your property, so factor pest control into your business strategy when renting commercial property. If the area that you are renting in is known for pest infestations, it is especially important for you to talk to your rental agency about their policies for pest control.
Inspectors should always have credentials available for viewing, should you require their services in your real estate dealings. Pest removal companies should be closely checked because many non-professionals do this work. Staying on top of this will help you avoid issues after the deal is completed.
When you are purchasing a piece of commercial real estate, know in advance what you plan to do with it. What are your plans? Do you want to lease or start you own business there? You should sit down and make specific and straightforward goals for your commercial property, as it will save you time and effort.
As the beginning of this article already mentioned, there are many reasons for you to consider investing in commercial real estate, all of which require some additional knowledge on the topic. Take some of the above tips to heart, and you’ll soon be maximizing your investment profits.