Read This Useful Advice About Commercial Real Estate | Eric Chua ...
Commercial property investment has good profit potential, but patience and learning are required. Many people have become successful with it by reading and applying the tips below so that they can succeed in this lucrative field.
Feng Shui
Think about feng shui principles when arranging furniture in both home offices and commercial buildings. Two of the basic principles of feng shui, openness and a lack of clutter, are both features that are appealing to buyers, tenants, and customers.
TIP! Consider the surrounding area when you buy a piece of commercial real estate. A business located in a well-to-do neighborhood might be more successful, since the potential customers will be able to spend more.
Always ask how a broker negotiates, before hiring him or her. Ask them about their background, such as what training they?ve completed or experience they have. You also want to know they are ethical in their approach to finding the best deals. Request to see examples of previous negotiations, both those that were unsuccessful and those that were successful.
Check out the state of the environment around your property. If your building is full of hazardous waste or otherwise constitutes a threat to the environment, you will be responsible for resolving these problems, even if a previous owner caused them. Perhaps you are looking at property located in a flood plain. Think over your options again. You can contact environmental assessment agencies to obtain information about the area in which you are considering buying something.
Find a variety of financial partners, from friends and family to professional lenders, to ensure you have a cash flow available to purchase commercial real estate. Have written contracts drafted by a lawyer so that you?re protected in any situation. There are two repayment options: paying it off at a certain interest rate, or paying due to profit.
TIP! Commercial loans are different from residential loans in certain ways, such as that a higher percentage down payment. Finding the best lending agencies and looking for investments is the perfect way to get the loan you need.
Commercial Loan
Your first step should be to find the best financing. Financing for a commercial loan in real estate investment differs from the rules that apply to home loans. Commercial loan products actually offer some benefits that residential loans don?t. While it is often more difficult to get a commercial loan, it becomes more worthwhile when you consider that this route allows you to sidestep personal liability. Furthermore, financial institutions are ultimately able to approve loans in larger amounts.
Before you jump into a commercial real estate deal, you want to get a lay of the land first. This means considering and examining the general income levels in the area, how high or low unemployment rates are, and looking at the hiring practices of employers within the vicinity of where you intend to invest. If you?re house is close to a university, hospital, or large employment center, they sell quick and at increased values.
TIP! Make certain to think about any sorts of environmental issues. For example, the previous property owners might not have disposed of hazardous waste appropriately.
Commercial properties can afford you some great tax breaks and benefits upon investing in them. Not only are there interest deductions, but also depreciation benefits to be aware of. Other investors deal largely with ?phantom income? ? income that is not paid in cash, yet is still taxed. Prior to investing in commercial real estate, you should familiarize yourself with this form of income.
Be sure to negotiate on the fact of what you are, the seller or buyer. It is important that your concerns and opinions are heard and recognized by the other parties; you must always put forth the effort to ensure fair pricing for the commercial property.
Educate yourself about the measurements of NOI: Net Operating Income. Having positive numbers is the only way to ensure success.
TIP! One thing you should be clear about when purchasing or selling property is the amount of square footage that exists. The square footage of a commercial property may represent one of two things; it may represent the usable space of that property, or it may represent the total square footage of that property.
You should take numerous, high-quality photographs of the property. Make sure your pictures clearly show any damage or defects, including carpet stains, holes in the walls or discoloration of plumbing and counter tops.
Commercial Property
Write down your goals before you start to search out the perfect commercial property. Do you want to start your own business there or do you want to lease the space? Have some clear goals before you look for commercial property, it will save you time and a lot of work.
TIP! Inquiring how a real estate agents earns his or her money is a great tip you can use to find an honest broker to deal with. The firm should answer your questions directly and let you know that what is best for them, might not be best for you.
Searching out larger commercial properties can help you in the long run, so keep an eye out for them. The rationale for going bigger is that in reality it does not require much extra effort to manage a property with more units, and at a lower cost per unit you could maximize your profits in the long run.
Reading this article and using the information you?ve read here, will get you off on the right foot when it comes to investing in commercial real estate. In this business, success goes to the prepared. Use what you?ve learned here to successfully leverage your resources in the commercial real estate investment
Source: http://www.maynaseric.com/read-this-useful-advice-about-commercial-real-estate
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