Tips To Keep You On Top With Commercial Real Estate | Eric Chua ...

Don?t neglect to dot even one i or cross even one t when making a commercial real estate transaction. No matter how much you think you know on this subject, it is possible that you are missing something small, or that you were unaware of. This article is full of commercial tips will shed some light on the subject.

It helps if you show people you know what you are talking about, so try writing a newsletter or have a website. By doing this, you will be able to locate people who are looking to buy or lease the type of property you offer.

The borrower needs to order an appraisal for a commercial loan. If someone else orders an appraisal for you, the bank may not accept that appraisal. Cover yourself and your interests by ordering it yourself.

TIP! When you are looking at a commercial property, be sure to look at the neighborhood, too. If you are looking in a high-rent neighborhood, you may have a better chance at success once you get going because of the potential of area residents to have money to spend.

Find your financing before you do anything else. Commercial lenders and loan products are different than home loans. Some aspects of commercial loans are better than those of home loans. Commercial properties require huge down payments, but regulations make it possible to avoid responsibility if things go bad. Additionally, banks aren?t as picky about how you come up with the down payment.

Tax Adviser

Talk to a good tax adviser before buying anything. The tax adviser will explain information about the overall costs of the buildings, and can elaborate more about how taxes will affect your income. Utilize the advice given to you by your tax adviser in order to locate a property in an area where your investment will incur the least taxes.

TIP! Think larger when you?re thinking about two commercial properties that are viable. Regardless of whether the property you decide on has twenty units or fifty, the process of obtaining financing will be the same, and in both cases will require substantial effort.

Find out how your real estate agent conducts negotiations. Ask them what specific training, expertise and professional experience they might have. Look for a broker who cares both about ethics and helping you succeed. Ideally, he or she should be capable of helping you get good deals without resorting to immoral or illegal activity. A quality broker will be happy to share examples of their past work with you if you ask, including both deals that were successful and those that weren?t.

Remember that your relationship to the investors or lenders plays an important role. Many commercial properties are bought and sold without ever going on the open market. Having many people in your address book increases the chance that you are exposed to such deals.

Remember that size is everything when you are shopping for a permanent space for a growing business. You should rent commercial properties that will allow your business to grow.

TIP! Commercial loans differ in several ways from residential loans; for one, they require a higher percentage deposit. It is in your best interest to search for the most trustworthy lenders and locate the best possible investments.

Arrange a number of fellow investors ranging from trusted family and friends to professional financers who can make sure you have access to cash flow prior to buying commercial property. Ideally, your contracts should include clauses that allow you to pay back loans with fixed-interest rates; you might also devote a set percentage of your revenues from the property.

You will need to have all of your financial information if you want to procure a commercial real estate loan. Without these important documents, most lenders will not feel confident enough to provide you with the needed funds.

Purchasing commercial real estate is a much more lengthy and complicated process than that of buying a home. Understand, however, that this additional time and effort often translates into higher returns.

TIP! Take the time to be certain you are satisfied with a piece of real estate before you purchase it. Never rush into an investment.

Be aware of the potential tax benefits of investing in commercial property. As with home mortgages, the interest paid on commercial real estate loans is tax-deductible, as is depreciation. Sometimes an investor will get a bit of money that is taxed even though it is not received. Learn about phantom income and taxes on commercial income before you invest in your first property.

Pro Forma

You should do this to ensure that the terms are the same as the pro forma and the rent roll. If these key terms aren?t reviewed by you, you might identify a term left unconsidered by the rent roll, meaning the pro forma gets changed.

TIP! Find a good attorney who will help you through every step of your commercial transaction. If something suddenly comes up and causes problems you will need to have someone on your side who can clear you of any wrong-doing.

Know what to expect from your realtor by asking them questions about successes and failures. Ask the person what criteria is used to gauge the success of results. Strive to understand the various strategies that they employ. You and your broker need to agree on these ideas and how to make them work.

You need to figure out exactly what type of space your business needs before you start looking for commercial property to lease or buy. You should be aware of every aspect of your ideal office space. If you hope to expand your business, you may want to buy extra space to save time, money and effort in the long run, especially if it?s a buyer?s market at the time of your purchase.

Square Footage

TIP! Check out where the utility hook-ups are on any commercial property. You will need access to electricity, water, sewer and maybe gas in addition to any unique need that your business has.

One thing you should be clear about when purchasing or selling property is the amount of square footage that exists. When dealing with commercial square footage, it is important to know both the total square footage of the space as well as the usable square footage, which is determined to be the space where actual business takes place. It?s important that you know both measurements for any property on your short list, as this will affect what you offer for the property.

Commercial property has many avenues; therefore, you should never assume you know everything. Work under the assumption that there is more to learn, so that you will always be seeking out new information and new ways to profit from your investments. Use these tips to

Source: http://www.maynaseric.com/tips-to-keep-you-on-top-with-commercial-real-estate-3

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