Commercial Property: Create The Right Conclusions Commercial real estate can be a tempting potential revenue source for property investors. Smart investors stay aware of the fact that commercial real estate is a different game from ordinary residential real estate, though. This article presents some of the specialized concerns real estate investors should keep in mind when they decide to enter the commercial market. To really make money in real estate you have to make it the day you purchase the property, not rely on the price going up over time. As the last few years have shown, prices can fall as well as rise. But finding a solid house that doesn't require a lot of repairs will eventually be paid for and can be sold for the equity. For new investors and even seasoned investors, it is best to have an investment partner. Buying property can be a very expensive process. A partner can help you offset the cost of purchasing property by using cash or credit. You can pay your partner back with proceeds from the sale of the property. One tip to being a good landlord is to make sure you check the references of anyone you would like as a tenant. Sometimes people can put on a good show and seem like they would be good tenants when in reality they would create a lot of problems for you. Better to be safe than sorry. Apartments are usually what people buy for commercial purposes, but think about other types of investments too. You could invest in offices, parks or simply land. You can also buy something and transform it into a different type of building if the location is right. Be creative and original in your projects, but be realistic in your plans. Test the wiring in the house before you rent it. It is inexpensive, easy and fast to check the outlets to make sure the wiring is correct. Faulty wiring can not only present a fire hazard, but may also damage your sensitive electronics such as
computers and TVs. Ask the landlord to make the necessary repairs before you sign the lease. You might need to reconfigure the interior of your property before you can use it properly. It could be something simple, such as paining walls, rearranging appliances or furniture or hanging things. Oftentimes, moving walls and other fixtures is required to redistribute the floorplan. Before buying the property, see if you can get the former owner to pay for some of these costs. If you're renting, the landlord might chip in. Investing in commercial real estate is more complex than residential home trading, for a very good reason: The potential profits are much greater. The traders who realize these profits are the ones who do their homework. A well-prepared, welleducated commercial real estate investor is less likely to fall prey to the common pitfalls and more likely to get the most out of his or her money. For more details, please visit our site: Peter Forchetti
Published on Mar 18, 2014
Commercial real estate and residential real estate are two separate worlds. The tactics you use to locate and buy residential will have no u...