Before entering into any sort of buying or selling transaction, you must first ensure that everything has been addressed. Regardless of how talented or educated you might be in this arena, there?s always something that you might know that can help you. The tips on commercial real estate in this article will help you out in the long run.
Determine what purpose you are going to use a commercial property for before you buy it. Do you want to start your own business there or do you want to lease the space? Establish clear goals for your investment to narrow down your possibilities, as much as possible.
Different commercial brokers represent different parties. You have a full service broker who works on behalf of both the tenant and landlord, then you have brokers who only work with tenants. A broker who works only with tenants should have more experience and should represent a better choice for you.
Be clearheaded about what amount of square footage is really usable. It is common for commercial properties to be described in terms of usable square feet in which an enterprise would actually operate, or in terms of total square feet, which encompasses walls and non-usable area. Find out what the square footage of the property you are interested in, is measured.
Have financial statements available to show to potential lenders if you want to purchase commercial real estate. If you don?t have these, banks won?t know how you manage your money, which might cause them not to lend the amount of money that you need.
Get your commercial property inspected before you try to sell it. If there is anything wrong with your property, have it fixed right away.
Look for property that has more units. The more units that are in your possession, the easier it becomes to turn a profit on each of them. Many purchasers will not even glance at a property if it has less than ten units, and most believe that the more units included, the more money you can make.
Think about environmental hazards that you may be responsible for taking care of. For instance, your property could be endangered by the presence of hazardous waste. It is your job and responsibility as a property owner to have these problems fixed, whether or not you are the one who caused them.
You should do this to ensure that the terms are the same as the pro forma and the rent roll. If you concentrate on these points, you can find an issue with the property.
Don?t assume you?re an expert on commercial property. There is always more to learn and information is always evolving when it comes to real estate. If you implement this advice carefully, you will enjoy success.
Sim Sadler is a real estate expert and has been buying and selling commercial real estate for over 25 years, through every market you can imagine.
Source: http://www.simsadler.net/confused-by-commercial-real-estate-help-is-here/
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