Purchasing Commercial Real Estate in OBX
Follow These Basic Steps When Dealing With Commercial Real Estate
Outer Banks Commercial property is a hard and time-consuming investment. But, the rewards can be very lucrative as well. This article contains tips and ideas to help you triumph in the arena of commercial real estate.
When choosing between two similar commercial properties, think large scale. Getting the financing you need can be a difficult thing, regardless of the size of the property. Generally, this is the same situation as if you were buying something in bulk, the more you buy the cheaper the price of each unit.
You should consult with a tax expert prior to purchasing anything. A good tax adviser can let you know what percentage of the income will be taxable, and exactly how much the building will cost you. Work with the adviser to try and locate an area where the taxes will be lower.
The most important thing to remember about any commercial property is that it has a prime lifetime period. A lot of people will completely ignore the fact that they may have to spend big money in maintaining the property. Make sure that you don’t fall into this trap. Consider the fact that a property could need a brand new, expensive roof fitted, or a modern electrical system installed. Pretty much every building will experience this at some point, and some will need more work than others. Make sure you develop a plan for the long term to manage repairs such as these.
Learn how each real estate broker intends to get you the best price before settling on one. Ask how they were trained and how much experience they have. Look for a broker who cares both about ethics and helping you succeed. Ideally, he or she should be capable of helping you get good deals without resorting to immoral or illegal activity. Ask for a portfolio, featuring both sales that were closed and sales that fell through.
When you are purchasing a commercial property buy as many units as possible. Having more units in the same property gives you more profit potential without much more work. Some investors won’t even visit a property with less than 10 units, and many reach far larger than that.
Get on the internet before you jump into the commercial real estate market. You should really consider making a LinkedIn profile or something similar as well as create a website. You are also going to want to check out search engine optimization because this can increase your website’s rank on search engines. People should be able to find your website by googling your name.
Create a real estate newsletter or blog that is regularly updated, and stay active on relevant social networking sites. After completion of a transaction, you should work to cultivate an online presence.
When choosing brokers with whom to work, find out the amount of experience they have dealing with commercial properties. Make sure you know that they actually specialize within the area you plan on selling and buying. With that broker, you also want to enter into exclusive agreements.
There are a lot of different kinds of real estate agents. 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. You may be helped much more with a broker who just works with the tenant, as that person most likely has more experience in handling tenants successfully.
Take tours of any properties that you’re considering. When looking at a property that you are thinking of purchasing, it’s a good idea to have a licensed contractor accompany you. Open negotiations after making your offer. Before you decide whether you want to accept an offer or not, be sure to carefully evaluate all counteroffers.
An essential fundamental of commercial property is location, location, location. When investing in a property, consider what type of neighborhood it is located in. Don’t forget to check out similar areas as well, in order to see how other neighborhoods are growing economically. Since you will likely still own the property in ten years, you want it to be located in an area that is likewise still desirable in ten years.
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 overdose on knowledge. Learn everything you can about real estate.
It’s likely that the property you buy will need some repairs and work before you move in. These changes could simply be cosmetic ones as simple as a new coat of paint or moving the furniture around. However, many people find they need to take out or add walls to make modifications to the basic floor plan. Decide in advice who will be responsible for these things and try to get landlords or previous owners to pay for some of it.
As previously mentioned, purchasing commercial real estate can be very profitable. Apply the advice of this article to your own situation and hopefully, you will find much success in commercial real estate.