Tag Archive for dual agency

Commerical Real Estate Tips You Can’t Live Without

Commercial real estate investment has an enticing reward potential, however, a considerable amount of homework is required on the part of any would-be investor. The tips you just read have helped many real estate investors make a tidy profit, and if you follow these tips, there is no reason why you can’t follow in their footsteps.

Purchasing commercial real estate is a much more lengthy and complicated process than that of buying a home. The duration and intensity is necessary if your investment is to yield a high return.

Look at the neighborhood you’re thinking about investing into, you want to check things like unemployments rates, income levels, and different rates of expansion so that you have an idea of where the neighborhood stands, and what potential it has in the future. In addition, you want to keep in mind what else is close to the property. Any place that supplies a large number of jobs to the economy can raise the resale value of any property and make it much faster to sell if you decided to go that route. Big employers might consist of hospitals, factories, or universities.

If you are trying to choose between two desirable commercial purchases, the larger one may be the better choice. Finding the right bank to finance you might be hard, even if you are going for a smaller building. Also, purchasing more units is like buying in bulk. The more you buy, the cheaper each unit will be.

Make sure that the broker you decide to work with has experience in the commercial market. Make sure that their particular business focus includes what you are interested in. Entering into an exclusive contract with that particular broker is a good idea.

Your investment may require substantial amounts of your individual time and attention in the beginning. First, you will need to search for a golden opportunity. After you have purchased the property, you may have to spend some time and money making repairs or remodeling it. Do not give up because this process takes too much of your time. The investment will be repaid as time goes on.

Even though you may be running a business and ultimately need to secure profits, it’s important that you don’t embellish prices in an attempt to get an extra dollar. There are a lot of uncertainties which can have a huge impact on the price of your lot.

Always have an inspector look over your commercial property before you put it out on the market. This way you can make sure it is prepared in advance of a sale, and if any problems arise during the inspection you can take care of it on the front end.

Make sure that the commercial real estate you want to purchase is equipped with connections to all of the utilities you’ll need. The property must have access to electric, water, sewer and maybe gas for it to be a viable commercial real estate purchase.

Take a tour of any property that you are interested in. You can even take a contractor with you to provide expert advice. Submit a first offer and solicit counteroffers. Give a bit of thought to the counteroffers before deciding to accept the offer, make a counteroffer yourself or walk away.

Property Owners

Prior to listing your commercial property for sale, have it checked out by an inspector with at least five years of experience. You can fix any problems right away so you have the best available property.

Create or purchase an inspection checklist before starting to evaluate properties. Tour each potential property, and check how well it meets the requirements on the list. Accept the proposal responses from the first round, but be sure to inform the property owners directly if you decide to go further in your inquiries. Don’t hesitate to tell a property owner that you’re considering other properties as well. Most property owners won’t be upset or angry; they expect you to be looking at more than one property. This may help you by creating a sense of urgency on the seller’s part.

Establish your goals and needs before you start looking at properties. Write down the things you like about the property, important features are office numbers, how many conference rooms, restrooms, and how big it is.

Advertise your property for sale locally and outside your region. Don’t be mistaken by the thought that locals will be the only people interested in your sale. There are a lot of private investors who like to buy properties that are not in their direct area if they are affordably priced.

If the agent you are thinking of hiring for your commercial real estate transaction gives you any disclosure forms, make sure you read them carefully. Remember that dual agency is also an option. When dual agency exists, the agency advocates for both parties in the transaction. In other words, the agency is working for both tenant and landlord simultaneously. If dual agency is the case, it should be out in the open and both the landlord and the tenant should be in agreement with the arrangement.

If you’re new to investing, don’t focus on more than one kind of investment at the same time. Decide on one property type and educate yourself about the best way to handle it. If you try to divide your attention very much, you will not excel in any area.

Commercial real estate has many brokers to offer. You have a full service broker who works on behalf of both the tenant and landlord, then you have brokers who only work with tenants. Brokers who work only with tenants have more experience with representing them well.

With careful consideration and application of these tips, you have a solid foundation to build your commercial real estate investment strategy. Follow the advice you’ve read here to reap the greatest rewards by taking advantage of deals others won’t even know how to find!

Looking For The Right Commercial Real Estate

The idea of owning commercial real estate can be exhilarating, but purchasing and managing commercial property can also be complex and demanding. As a result, you may wonder where to start to be sure that all the details are handled. Figuring out the ins and outs of commercial real estate isn’t always easy, but in the following paragraphs, you’ll learn some essential tools of the trade.

Whether buying or selling, negotiate. Fight for the best price possible and make sure that all parties involved listen to you.

Never be afraid to negotiate, no matter which side of the table you are on. Let people know what you want and make sure you are asking for a realistic price.

Before you buy or sell a commercial property, find out several key economic indicators for the region, including trends in unemployment and income, as well as major employers in the region. Having a house located near a hospital, business sector, university or other school will greatly increase your home’s value, and provide you with a better chance for quickly selling it.

Pest Control

Look at the neighborhood you’re thinking about investing into, you want to check things like unemployments rates, income levels, and different rates of expansion so that you have an idea of where the neighborhood stands, and what potential it has in the future. Commercial property near hospitals or schools have higher property values; these properties are also easier to sell.

Pest control is something you should look into when renting or leasing a property. This is especially important when an area is known to have pest and rodent problems. Prior to signing a lease, ask your agent what the current pest control policies are.

When dealing with commercial properties location is everything. Think about the neighborhood your property is located in. You also want to look for a neighborhood that is solid and growing. What you are seeing now in terms of commercial potential might be very different a few years from now.

Take the time to be certain you are satisfied with a piece of real estate before you purchase it. Don’t enter into any investment opportunity without doing the proper amount of research. You may soon regret it when the property does not fulfill your goals. It could take you twelve months or longer to get the deal that fits you perfectly.

It is important that each property offers unhindered access to utilities. Every business requires certain utilities, most commonly things like water, sewage and electricity.

Before you talk about a lease in commercial real estate, make sure to lower anything that might be thought of as events of default, wherever possible. If you cover all the applicable issues, then you make it far less likely that potential tenants will default on their lease. Once a default happens, you’ll be in big trouble!

One of the most critical considerations for valuing a commercial property is its physical location. Think about the type of neighborhood the property is in. Compare its growth to similar areas. You want to make sure that in 5 or 10 years down the road, the area is still a descent and growing area.

Take a tour of properties you are considering. Think also about having a professional contractor tag along aside you when you look over these properties. Once you have all the details, start drafting proposals and enter negotiations with the seller. Evaluate counteroffers against the information you collected on your tours, and use that information to justify your own counteroffers.

The commercial space you want to rent may need some changes before you can move in. For example, you might neat to repaint or purchase new furniture. The renovation project can get larger and could consist of knocking down, moving or building walls to make the floor plan usable. When negotiating, you should discuss who will pay for the improvements you’ll have to make, and should see if the current owner will cover some of your costs.

If you are in a situation where you have to choose between two attractive commercial properties, remember that size matters. Whether it be a twenty or ten unit apartment complex, you want to get adequate financing to back you up. Generally, this is much like the principle of buying in bulk; the more units you buy, the lower the price per unit.

Brokers Represent

Different commercial brokers represent different parties. For example, some brokers represent landlords as well as tenants, while others only work with tenants. You may benefit significantly better from hiring the services of a broker working with tenants exclusively, as he has significantly more experience representing tenants successfully.

See to it that the price that you ask for in real estate is realistic. Your property’s actual value is influenced by many factors.

Carefully peruse the disclosure statements issued by the real estate agency you intend to hire. Never neglect the fact that you may be dealing with a “dual agency.” In this case, the agent is two-faced: she is representing both parties to the transaction. This means that the agent is representing the interests of the lessor and lessee simultaneously. Real estate agents must disclose any dual agency. Both the tenant and the landlord must agree to accept dual agency.

Commercial Property

You deal should naturally include inspections, and you should also evaluate the credentials of the inspectors. You need to be especially diligent when it comes to hiring a pest control service, as many people who work in this field aren’t accredited. This can help you avoid headaches after the sale.

So, as you have seen, it is true that owning and buying commercial property requires research, work and effort, in order to have the best experience possible. Perseverance is also a necessity in this business. Take the advice from this article to heart, and follow it and your dream of owning commercial property.

Advice To Help You Become A Commercial Real Estate Market Expect

If you want to invest in real estate, you need to know what kind of property you want to spend money on! If you do not invest in the right real estate, you could end up losing a lot of money. Read on to learn how to make better commercial real estate investment decisions.

If you’re a buyer or if you’re a seller, it’s important that you negotiate. Make sure you have a voice and that you are offered a reasonable amount of money for the property.

Look at the neighborhood you’re thinking about investing into, you want to check things like unemployments rates, income levels, and different rates of expansion so that you have an idea of where the neighborhood stands, and what potential it has in the future. Your house will sell more quickly and at a higher value if it is near a university, hospital or any large employment center.

Pest Control

If you are looking to lease or rent, the issue of pest control is a critical one to address. It is even more important to look into the building’s pest control policies if you are looking to rent or lease in a region where building pests are common.

Whether you want to rent or lease, you will have to deal with pest control. This is important in less desirable locations where rodents and/or bugs are an issue. Have your rental agent inform you of any associated policies for pest control.

Your investment may require a large amount of time to begin with. First, you will need to search for a golden opportunity. After you have purchased the property, you may have to spend some time and money making repairs or remodeling it. Don’t throw in the towel because the process is taking too long to complete. You will be rewarded later.

Every prospective real estate purchase should include thorough onsite inspections; it is equally important to verify the inspectors’ credentials. Always check the credentials of workers in insect and pest control as many of them aren’t licensed. This can prevent larger problems from occurring after the sale.

Ask for the credentials of any professional you’re planning to hire as an inspector, and ensure they are experienced in commercial real estate. Pest removal companies should be closely checked because many non-professionals do this work. Ultimately, this can help you to bypass larger, more expensive problems.

When you are shopping for a commercial property, be sure to confirm that you will have access to utilities. The property must have access to electric, water, sewer and maybe gas for it to be a viable commercial real estate purchase.

Consider the surrounding area when you buy a piece of commercial real estate. A business located in a well-to-do neighborhood might be more successful, since the potential customers will be able to spend more. Bargain-oriented goods and services will find a more receptive market in lower- to middle-class areas.

Always keep tenants, otherwise, your commercial property will end up costing you money instead of making you money. You are responsible for the expenses associated with keeping your unoccupied spaces updated and maintained. If you have several properties open, you should ask yourself why, and attempt to correct the issues that may be driving out your tenants.

Know your needs before you even start looking for a commercial real estate. You should write a list of which features are most important to you. For example, do you need a specific number of restrooms, a specific amount of square footage, or a conference room?

Know how to get emergency maintenance performed on a property at a moment’s notice. The landlord in the building where you have your office will be able to provide emergency repair contact information for you. Have a list of phone numbers to call if you need emergency repairs, and know how much time it usually takes for repairmen to arrive. Your landlord should be able to provide you a list of emergency contacts so that you can map out a safe and well organized emergency plan, in case an emergency happens during normal business hours.

When you are negotiating to rent a commercial property, try to have the lease modified so there are few events that are considered to be defaulting on the lease. Doing so makes it less likely that a tenant can default on the lease. This is a bad thing, so do what you can to minimize the chance of it happening.

Real Estate

Before hiring any real estate broker, read all of his disclosures. Understand the meaning of dual agency. In this case, the real estate agency represents both sides of the transaction. In other words, the agency is working for both tenant and landlord simultaneously. If there is a dual agency, everyone should be honest about it and find an agreement.

Take a look around properties you are interested in. Bring a contractor along so that you don’t forget to inspect any important features. Begin negotiating and the process of offers and counter offers. Carefully look over any counteroffers you receive before you make your final choice, whatever that may be.

If you apply the information that you have just read, you have an excellent chance of realizing real estate success in the commercial markets. To be successful in commercial real estate means you need to do a lot of research, have some skills, and even be a tiny bit lucky. Of course, not everyone can succeed at commercial real estate investment, but following our tips will certainly increase your chances!