Take digital photographs of the unit. In the “before” photos, especially, make sure that the pictures clearly show defects such as stains on the carpet, discolorations in the tub and sink, and holes in the walls.
Try practicing patience and remain calm, if you are considering purchasing any commercial real estate. Do not be hasty about making an investment decision. A poorly thought out investment might soon give you many regrets. Be prepared to wait as much as a year for a suitable property to come available in your area.
Initially, your investment will take up a great deal of your time. It can take a little time to find a property worth purchasing, and you also may have to make necessary repairs. Although it may take time to get your investment property up to speed, do not abandon your project. It will pay off in the long run.
Inspectors should always have credentials available for viewing, should you require their services in your real estate dealings. This is especially true of people who work with insect or pest removal, as there are many non-accredited people working in these fields. Seeking out professionals with proper accreditation will be worth it in the long run.
A property to be rented out commercially should be one that is soundly built and simple in design. Tenants are more likely to move in when they know the property is well taken care of. These properties are also more cost-effective for you and your tenants due to the fact that they only require minimal upkeep and repairs.
Be certain the commercial property you are considering has good utility access. Every business has different needs, but at a minimum, most businesses will need power, sewer, and water services.
If you are considering leasing a property to someone else, then cover all your bases to reduce the risk of default. This will lessen the possibility of a lease default by your tenant. Once a default happens, you’ll be in big trouble!
Keep letters of intent simple by tackling large issues before sweating the small stuff. This will make negotiations less tense and make gaining agreement on the smaller issues easier to complete.
When searching for a commercial real estate agent, keep their disclosures in mind so you know who they are working for. In Ohio, this is what the agency disclosure form looks like.
If there are 2 different agents from 2 different agencies (one representing you and the other the second party) They will fill out section 1 of this form.
If they both agents work for the same broker but are representing 2 different parties (buyer and seller) then they would fill out section 3. Never neglect the fact that you may be dealing with a “dual agency.” When dual agency exists, the agency advocates for both parties in the transaction. Or, for short, the agent is looking out for both parties’ interests. 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.
The next section is for Dual agent. Never neglect the fact that you may be dealing with a “dual agency.” When dual agency exists, the agency advocates for both parties in the transaction. Or, for short, the agent is looking out for both parties’ interests. 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.
As was stated near the beginning of this article, you can reap serious rewards from investing in commercial real estate. Apply the advice of this article to your own situation and hopefully, you will find much success in commercial real estate.