Getting involved in commercial real estate can overwhelm and stress out beginners and veterans alike. Read this article to find out how you can approach a transaction efficiently, and stay in control of the situation with less stress.
If you plan on investing in commercial real estate, you should consider the tax benefits you will receive. Not only are there interest deductions, but also depreciation benefits to be aware of. There is a chance that an investor may receive money that must be taxed, but does not come in the form of cash; this is known as phantom income. You should be mindful of phantom income prior to investing.
It is important to be aware of all of the environmental issues and obligations related to your property. For example, hazardous waste materials are a major red flag for any property. It?s up to you to be aware of the issues, fix them, and have them inspected once complete.
Create a reputation of being an expert by starting a blog on your website. This assists in locating people to buy or lease your property.
When searching for a real estate agent, keep their disclosures in mind so you know who they are working for. Dual agency is a possibility that you need to be aware of. When dual agency exists, the agency advocates for both parties in the transaction. This means the agency works for the tenant and the landlord at the same time. If this is the case, and the agent is a dual agent, this should be known to both parties and agreed to by both parties.
When choosing between two similar commercial properties, think large scale. Acquiring enough money to finance a 10 or 20 unit apartment complex can be huge undertaking. Also, purchasing more units is like buying in bulk. The more you buy, the cheaper each unit will be.
Don?t ever underestimate the value of the relation between you and lenders, be them private or investors. 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.
You may wish to focus your efforts on only one property type at a time. Regardless of whether your real estate investment is a office, apartment complex, or undeveloped commercial land, it is important to concentrate your efforts on only one investment. Each type deserves and requires undivided attention. Becoming a guru in one investment category is preferable to minimal success spread across multiple investments.
Looking for that perfect piece of commercial property can seem like an endless journey, with much to learn for even the most experienced buyers. In this article, you will find plenty of tips and tricks to give you an enjoyable and easy search for the commercial property you need.
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/how-to-get-started-in-commercial-real-estate-2/
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