Even though there are many commercial properties listed every day, you will not see them in the preferential listings, as you would homes. Read on to learn the best ways to find commercial properties for sale or lease.
Buy properties with multiple units. Having more units allows you to get more money per unit, and thus spread that investment elsewhere. Serious investors will not be interested by a building that has less than a dozen units.
Make sure that you invest some time researching local income levels and other factors, such as unemployment rates or local employers plans for expanding or contracting their businesses before you invest a large amount of funds into real estate. Properties located near major employers, like hospitals, schools or distribution centers, are often more in demand at every price range.
Take some time to visit websites that are devoted to commercial real estate. These sites have lots of information for both new investors and seasoned professionals. You can never have too much knowledge.
Be clear about the square footage available. The usable square feet is the measurement of where business will take place in commercial real estate. Total square footage can also be used, however, this encompasses all space including unusable space and walls. Determine both square footages for smooth business transactions.
When selling commercial property, advertise locally and outside of your region. Many people target their advertising to local buyers only, thinking that those buyers are their market. Private investors will purchase properties outside of their area if the prices are low enough.
If you are considering apartment complexes as your next investment, remember that smaller complexes may be more trouble than they are worth. In fact, many experienced investors recommend only investing in properties with 10 or more units. However, each opportunity and property is unique, and you should allow your investigation of a specific property to influence your decision.
When purchasing commercial real estate, always keep your goals in mind. Are you actually going to run a business in the building, or lease it to another business? If you plan out your goals in advance, you can look only at properties that correlate with those goals.
At any given time, you should place your focus on only one investment. Keep your focus on one certain type of property, whether it’s land, retail, apartments or offices. Each kind demands and is worthy of your complete and focused attention. It’s better to master one part of commercial real estate than it is to get mediocre results in a variety of categories.
During the commercial loan process, the person who is the borrower will need to order the appraisal. The bank will not allow you to use it later. Plan for this eventuality and arrange for the appraisal on your own.
Be sure to enlist the assistance of an excellent real estate attorney to review any contracts or financing documents for your commercial properties. Because real estate investing is full of unexpected pitfalls and setbacks, you need a savvy professional to cover your legal liabilities.
When you are pursuing an investment in commercial real estate, finding the right type is only the start of the process. Arming yourself with some good information makes the whole real estate process so much easier.