Commercial property investment has good profit potential, but patience and learning are required. Anyone can become a savvy real estate investor as long as they’re willing to dedicate their time to reading advice, such as is contained in this article, and applying it when purchasing commercial property.
Negotiate, whether you’re the seller or the buyer. Be sure that your voice is heard so that you can get yourself a fair price on the property you are dealing with.
Another factor to be aware of when shopping for property to rent or lease is who pays for pest control. This is especially true when renting in an area that has a lot of bugs or rodents, so be sure to talk to the rental agent about some pest control policies.
If you are involved in renting commercial properties, try your best to keep them filled. Remember that if you have empty units, you have to take care of them. Maintenance costs on empty units can add up. If you notice that you have several vacant properties, try to find out why, and look at ways of enticing tenants back in.
If you want to sell a property, advertise it locally and on a wider level too. Many sellers mistakenly presume that their property will appeal only to local buyers. Many private investors find it appealing to purchase properties that are affordably priced outside of their direct area.
A letter of intent should be kept simple by focusing on larger issues and leaving smaller issues to negotiate later. The negotiations will go much better and be less stressful if you keep the small stuff out of the way and can focus on the larger issues first.
Your new space may need improvements before you can occupy it. These may be simply applying new paint or a change in furnishings. However, in other cases, reconfiguration of the walls will be required. Negotiate payment for these improvements ahead of time, and attempt to have the landlord pay at least part of the costs.
Commercial real estate agents come in different types. Agents that work with tenants and landlords both are called full service brokers. There are also agents that only represent tenants. Consider hiring a tenant-only broker as he’ll have the most experience in dealing with situations such as yours.
Read the disclosures when you’re ready to hire a real estate agent. Try to beware of dual agency. In this sort of situation, the agency acts as both parts of the transaction. This will mean that the agency will work with the landlord and tenant simultaneously. Both parties need to clearly understand that the transaction is being handled by a dual agent and consent to this fact.
The borrower needs to order an appraisal for a commercial loan. If someone else orders an appraisal for you, the bank may not accept that appraisal. Make sure you have all your paperwork in order before you even apply for your loan.
Use this article as a springboard for smarter real estate investments. Once you follow the helpful advice in the article, you will reap the rewards of successful commercial real estate investing.
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