Taking part in a commercial real estate venture often becomes stressful and can seem like a lot to handle, not only for beginners, but also for those who are more experienced. The advice of the following article will guide you through the often confusing and complicated world of commercial real estate, and hopefully see you better prepared for succeeding in it.
Bigger is better in commercial realty investments. Managing five units might seem far less complicated than fifty, but the work that you put into financing and setting up lease agreements will be the same no matter how many units you manage. A five-unit building requires commercial financing just as the larger buildings do, and buying a larger building with more units costs less per unit.
When buying rental properties, avoid the difficulties involved with smaller properties. Experienced investors advise buying complexes with over 10 units. However, each case has different issues, and the information that you have about a specific property will guide your decision.
Residential and commercial loans are vastly different from each other. For example with a commercial loan, the down payment percentage is higher than a residential one. The ideal way in qualifying for this type of loan is by finding the best lenders in addition to asking around for potential investment opportunities.
Make sure that you explicitly welcome both local and non-local buyers when you sell a piece of commercial property. Too many sellers assume that their property is likely to only sell to someone local. This is a way of thinking you should avoid. There are many private investors who will buy affordable priced property in any area.
Consider what youR actual goals are before you begin to invest in commercial real estate. Features like square footage or restrooms should be predetermined to make the process easier.
Make sure you are clear about the actual amount of square footage that?s available. There are two different ways to measure square footage for commercial properties. The first is usable square feet, while the second measurement is total square feet, which often includes unusable areas and walls. Get a number for both kinds of square footage, so you can gauge if the property really suits your needs.
Ask potential real estate brokers to describe how they make money. An honest real estate firm will usually answer these questions with ease and may even provide documentation to some extent. Get an understanding of why they are in business and what they can do for you.
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 can help make your search for commercial property less stressful.
Sim Sadler is a real estate expert and has been buying and selling commercial real estate for over 25 years, through every market you can imagine.
Source: http://www.simsadler.net/mastering-the-world-of-commercial-real-estate-2/
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