Whether you are buying or selling Real Estate, you know that commercial Real Estate is a much different animal that selling or buying private homes. It is wrought with complexities, laws and all kinds of expensive potential pitfalls. So here we will look into having those exposed and give you some common sense tips on how to deal with commercial Real Estate.
Tips for Commercial Real Estate
Investing is the largest form of Commercial Real Estate. So here we will furnish some hot tips as to how to get really good at it.
Things get cheaper in bulk:
If it is going to cost you more in commercial financing then why would you waste your time? Buy more! Pay less! Under 10 units is never worth it for any type of commercial investment property.
Look at your investment as a retirement vehicle:
Make sure you understand that your commercial investment is a vehicle for your retirement or some long-term investment. This is NOT your get rich quick to pay bills oh no, this is what you use to facilitate your retirement or your kids college fund or something.
Apartments aren’t all there is:
Make sure you are shopping around a bit outside of the apartment complex range. People naturally gravitate towards this by default. We don’t know why, it’s not even the easiest commercial investment you can make. So shop around in the realm of shopping plaza or strip mall type business or even a garage. There are literally tons of Real Estate investments that you can choose from.
If you are actually selling it:
The same goes if you are selling the property. Don’t get discouraged if you are going to sell and you don’t get your first deal yet. Don’t bank too much on getting one immediately. Learn how to feel people out because in this business—you’ve got to think on your feet. People can back out and go cold if they smell something that is not right. They can also be juggling you with another Real Estate person. They can also be receiving a lot of advice from others and anything can change at anytime.
One big difference between commercial and private sales:
Relationships with your network is important whether you are buyer or seller or Real Estate agent. They are important within the realm of private housing but they are even more important when they are in commercial Real Estate. Why? Because it is a property that may not be listed. Here is the secret to dealing with that one.
Commercial Real Estate is not always listed—in fact—it almost never is unless there is an issue with them getting rid of it. So, networking and word of mouth is absolutely paramount. If you ask around, you will probably find out what is available well before it’s listed.