Purchasing real estate may be thought of as one of the most prevalent purchases someone will make throughout their lifetime with almost one-third of his or her net worth tied into real estate.
To find the hottest deals on the market, the savvy expert real estate investors have the capability to bring genuine investment opportunities to your fingertips.
Commercial real estate property owners have significantly more benefits than residential owners creating the ultimate long-term investment. With additional cash flow, open playing field, beneficial economies of scale, and affordable property managers, commercial real estate property heavily outweighs residential in terms of benefits.
However, it is not always easy to recognize the great deals and the disappointments when analyzing properties. Having a set starting point when analyzing properties can lead as the key to success.
- Become an Insider
Fake it to make it, or ultimately just make it. Learn to think as a professional would in the real estate world. Take the time to know the main differences between commercial and residential property values. Larger cash flow relates directly to the income on commercial real estate. Supplementary usable square footage equals greater income it’s that simple. Additionally, become familiar with the lease requirements, as commercial leases tend to be longer than those on single-family residences. The biggest tip, keep cash readily in hand and be able to put 30% down before a loan is approved.
2. Create a Blueprint
A plan of action along with goals and expectations is the ultimate key to success. Who is involved in the decision making process? How much space do you need to fulfill? Most importantly, what can you afford versus what are you willing to pay? By creating a blueprint, you are able to walk into any situation ready to answer and ask any and all questions that may come up
3. Seek the Driven
In the real estate world, the customers drive business sales. A deal is great, but if it not supplemented with a motivated seller, you might as well walk away. Seek customers who are both willing and able to sell below market value. Without a driven customer, negotiation is a definite no.
4. Picture Perfect
Another strategy in evaluating commercial property is to examine the neighborhood. What may seem like a picture perfect setting on the Internet may not be the actual case. Take a tour through open houses, look for vacancies and gain first hand knowledge by talking with other neighborhood owners
5. See the Deal, Now Walk Away
Think you’ve found a great deal? Test it by walking away. A simple expert tip is having a functional exit strategy. Come ready to assess risk and seek damages with essential repairs. Don’t forget the most important tool, a calculator to make sure all financial goals are met.
When your wealth is at hand, its important to do your homework and evaluate commercial properties from all aspects. Take the time to build relationships and affinity with property owners. Not only will they feel comfortable discussing the quality market deals, they may also do business with you, creating an ultimate win for both parties involved.