Keeping Up With Your Commercial Real Estate

Buying or selling your first commercial property isn’t as tough as it may seem. You should know a few things before you get started. This article contains tips to help you get more from your experience.

Don’t make any big real estate purchases until you’ve evaluated the unemployment rates, income levels, and expansion rates of the area. If you’re house is close to a university, hospital, or large employment center, they sell quick and at increased values.

You must be patient to succeed as a real estate investor. Make decisions calmly and slowly–don’t be in a rush to buy a piece of property. Never rush into an investment. The property you buy in a hurry might not deliver what you need to reach your goals, leaving you to regret the purchase afterward. Realize that it can sometimes take at least one year for the proper investment opportunity to present itself.

Real Estate

Do some research on the internet to learn more about real estate and investing, whether you have a lot of experience already or are completely green on the matter. You can never learn too much about commercial real estate, so make it your aim to always keep adding to your store of knowledge about the subject.

Research your prospective brokers to see how experienced they are with the commercial market. Be sure that they specialize in the area that you are buying or selling in. Make sure your agreement to work with that broker is exclusive.

Learn to understand the commercial real estate metric called Net Operating Income (NOI). Having positive numbers is the only way to ensure success.

You need to make sure that the price you are asking for your real estate is a realistic price. There are a lot of factors that determine the value of the lot.

Make sure you’ll be able to access power, water and other utilities for your commercial property. Every business requires certain utilities, most commonly things like water, sewage and electricity.

Emergency Repairs

You must know how to deal with an emergency, should it arise. Ask the landlord who handles emergency repairs in your office or building. Have a list of phone numbers to call if you need emergency repairs, and know how much time it usually takes for repairmen to arrive. Take advantage of this information to devise a contingency plan in order to prevent and respond to customer complaints resulting from maintenance issues.

You can find different kinds of brokers. Full service brokers work with both landlords and tenants and there are agents representing tenants only. It might be more beneficial to hire a broker who works only with tenants, as he has more experience working with those searching for a property.

When searching for a real estate agent, keep their disclosures in mind so you know who they are working for. There is a possibility of a condition called dual agency. Dual agency refers to a situation in which a real estate agent represents both the landlord and the tenant in a commercial transaction. In other words, an agency simultaneously provides services to both the landlord and tenant. Dual agencies require full disclosure and must be agreed upon by both parties.

As it was said at the beginning of this article, you need to have a great deal of information before beginning a commercial real estate venture. Hopefully this article has helped prepare you for your commercial real estate venture.

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