Sunday, 23 June 2013

Tips For Purchasing Commercial Property

By Merv Carlson


Investing in commercial real estate requires your right attitude and also your patience. Researching before taking action will make you stand on the safe side. The following article contains more on this and other tips that can help you to see investment success.

If you have no experience about commercial real estate market and you are thinking of investing into a property, you should get the help from the experts. You need to consult with experts in the business to mentor you, and you also need partners to provide you with a financial backing.

Let me give you some examples to start. If you are new to commercial real estate investment, you should start with purchasing somewhere near a university. You will not have to worry about where to get the tenants because there are many students around you. As a property owner, it is advised that you write leases with detailed rules. Not all tenants will rent the property for long term; many of them will just lease the units for a short time during the summer.

You know already that you're a motivated buyer; now you just have to find an aptly motivated seller who is ready and willing to list and sell their property for well under the market value. Real estate owners who have some reasons to sell their properties urgently will be more open to negotiations.

The next tip is to make sure you give clear and concise offers. Do not make any assumptions about what a seller, business or home, would be willing to accept. Just offer the price you think the property is worth and wait for the response from the seller. If your deal is not accepted, then you were at least able to make sure you would have paid a fair price.

When buying commercial properties, always remember what you will need to replace. It is estimated that things like air conditioning and heating units will need to be replaced at least three months after you purchase the property. If at all possible, convince the seller to change these out for you, in order to save the major costs and hassles associated with the job.

Keep in mind that you have the right to bargain when purchasing commercial properties. Thus, if you do not like the initial price that you are being offered, don't panic, as you will have a chance to negotiate your price towards the end.

Patience, persistence, the right attitude and a willingness to do your homework. If you have all these personalities, you are more likely to get success when investing in commercial real estate than people who do not have. In this article, we have discussed a few tips from the experts that can help.




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