What To Look For When Purchasing Commercial Real Estate
Some people enjoy huge profits and even become wealthy from commercial real estate. This type of investing isn’t for the faint of heart, however, you’re also risking a large amount of money on each property you buy.
Have clear-cut goals for any commercial property you are looking at. Will you lease the property out or conduct business there yourself? If you plan out your goals in advance, you can look only at properties that correlate with those goals.
Think about feng shui principles when arranging furniture in both home offices and commercial buildings. Although feng shui isn’t scientifically validated, a couple of its basic tenets, including removing excess clutter and keeping spaces open, have actual practical use that can attract more buyers.
If you are hesitating between different properties, buy the larger of the two. Getting enough financing is a huge undertaking, no matter if you get a ten-unit complex or a larger twenty-unit one. This is generally like buying something in bulk, the more you buy, the less it is is per unit.
When buying commercial property, think about the socioeconomic status of the neighborhood around the building. You want to try to purchase commercial property in a neighborhood that is affluent so that you know your clientele are a little bit more well off and can spend more. On the other hand, if you are going to offer a product or service more popular with working class individuals, a less affluent neighborhood might be a better choice.
Make sure you have sufficient utility to access on any commercial piece of real estate. Your particular business might need additional services, such as cable, but at the minimum there should probably be sewer, water, phone, electric and gas.
Emergency maintenance is something you must include on the have to ask sheet. Find out from your landlord who to contact for emergency repairs, such as plumbing accidents. Know their phone numbers and also what their likely response time is going to be. Use any information you can get from your landlord so contingencies are ready for the times your normal business operations are interrupted so you can safeguard your customer service and your reputation.
If you are considering more than one property, be sure to obtain a checklist for the tour site. Accept the proposal responses from the first round, but be sure to inform the property owners directly if you decide to go further in your inquiries. It will likely be to your advantage to informally mention that you are looking at more than one property. Making them aware you have other options may get them to accept a lower offer.
If you want to invest in apartment complexes, you should know that in many cases smaller complexes are harder to maintain than larger ones. Some experts avoid any property that has less than ten apartments. However, every situation is unique. Do your research, and make an educated decision.
The commercial real estate market can yield some amazing potential for financial success. You have to invest a large down payment, sufficient time and enormous effort if your investment is to succeed. To achieve this, heed this advice.
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