It is hard to find the right property to invest in if you are not sure where to look. Take the time to read this advice.
Regardless of which side of the negotiations you’re on, learn to haggle. Both the buyer and seller should attempt to negotiate a fair price rather than accepting the other’s first offer. Be heard and fight to get a fair property price.
Take into consideration the local unemployment levels, average income, and job market before investing in real estate. Homes that are located near schools, hospitals and other major employers are assigned a higher resale value.
Location is just as important with commercial real estate as it is with residential properties. Neighborhood is important, even when you are looking at commercial property. You also want to look for a neighborhood that is solid and growing. This is important, as you don’t want to be in a current growth area only to have the neighborhood stagnate in a few years.
When choosing a broker, investigate their years of actual commercial market experience. Be sure that they specialize in the area that you are buying or selling in. You and this broker should enter into an agreement that is exclusive.
Always ask to see the credentials of any inspectors you hire for your real estate deal. This is especially true of people who work with insect or pest removal, as there are many non-accredited people working in these fields. A non-accredited inspector could be a source of problems.
Always make sure that utilities can be accessed from the commercial property you are looking into. You are going to need to sign up for utility services on your commercial property, along with the ones you have at your business.
Go on a tour of all potential properties. Definitely consider having a professional contractor go with you when looking at potential properties. Start the negotiations, and make the necessary preliminary proposals. Make sure you evaluate any counteroffers well enough before you make any purchasing decisions.
You may need to make some changes to the commercial space you just rented before moving in. The changes could be rather cosmetic. Sometimes it is as simple as painting a wall or moving some furniture. Sometimes, you may need to move a wall in order to create a better floor plan. Talk to your landlord about these improvements. Try to negotiate a deal where the landlord pays for some, if not all, of the cost of improving your space prior to moving in.
There are different types of commercial real estate brokers. For example, some brokers represent landlords as well as tenants, while others only work with tenants. You may benefit from using a broker who works exclusively with tenants, due to the singular focus.
Commercial properties can afford you some great tax breaks and benefits upon investing in them. Investors receive depreciation benefits as well as interest deductions. “Phantom income” is when an income is taxed but never received as cash, by the investors. You have to keep all of this in mind before you start to invest in real estate.
The advice outlined above lays out a number of useful strategies applicable to both buying and selling commercial real estate. Use this advice to remain informed.