No matter how experienced you are with commercial real estate, it can be a difficult business to succeed in. In the following paragraphs are facts and insights designed to lessen the burden of stress you will endure from dealing with commercial property matters.
Before purchasing any property, you should investigate its area to determine the average income level, unemployment rate and whether or not that area is growing. Properties located near major employers, like hospitals, schools or distribution centers, are often more in demand at every price range.
Take plenty of pictures of the building. Ensure that the photos document any problems, including mold, damaged walls, or chipped fixtures.
If your property deal requires inspections (as it should), look at the inspector’s credentials. A lot of people have no accreditation, especially in pest control services. You want to avoid a future liability that can come after the sale, if the inspection was not correct.
A letter of intent should be simple to begin with, covering only the larger issues. Once an agreement on those terms are made, you can begin addressing the smaller issues. This way, negotiations will be smoother, and agreements on the small issues are more likely to be reached.
When you are considering making an investment in commercial real estate, know what you need. Draw up a list of specific attributes your office space must have, including size, number of meeting rooms, and available bathrooms.
You may need to make some changes to the commercial space you just rented before moving in. The improvements can just affect surface appearance like painting the walls or moving furniture around. You may even need to tear a wall down to make the floor plan fit your needs. Be sure to negotiate who is responsible for these changes ahead of time so that you do not have to pay for the full cost.
When hiring a real estate agent, read the disclosures completely before signing a contract with a realtor. It is important that you realize that you may be entering a dual agency transaction. In this situation, the agent will represent the buyer and seller. When dual agency happens the Realtor on behalf of both parties. If there is a dual agency, everyone should be honest about it and find an agreement.
The search for appropriate commercial properties can stress you out regardless of how much experience you’ve had in the commercial real estate market. This article will help you find and buy commercial property with the least amount of stress possible.
Regardless if you are a investing in real estate, possessing the right mindset is going to be crucial to your level of success. Wall Street Journal best-selling author Orrin Woodward published a book called “RESOLVED: 13 Resolutions for LIFE” which goes over this topic of developing mindset and personal excellence extremely well. It’s a must-read.