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Critical Questions to Ask Your Property Broker (Full List): Buy Commercial Real Estate Smart

By Jeff Tormey


So, you feel now is the right time to get into buying and selling commercial real estate? You are probably wondering just where to begin, but relax, that is why this article was written. This article was written to help get the process moving in the right direction, so check out the following tips and soon enough you will be ready to make that first deal.

As you view prospective commercial properties, it pays to think on a larger scale. You may only have planned to buy a five-unit building, but managing 10 or even 50 units will not be any harder. That many units still need commercial financing like the larger ones do, and the larger ones generally cost less for every unit.

Aim to avoid default before you sign a real estate lease. Your tenant will be less likely to default on the lease if you do this. You want to ensure this doesn't happen at all costs.

An honest broker should be willing to answer questions about how they earn their money. The representative's answer should be open and honest and should make it clear whether or not the interests and principles of the firm are in line with yours. Make sure you understand how they are going to benefit from the transaction that they will take care of for you.

You should be certain that your asking price is a fair offer for your piece of real estate. There are a lot of uncertainties which can have a huge impact on the price of your lot.

A commercial loan usually requires a higher down payment when compared to a residential loan. Trying to find the best lenders and asking around for possible investments is the best way to qualify for one.

Do your best to have your properties occupied at all times. You're the one who has to pay to keep the building maintained, and if no one's renting them, you're wasting your money. If you have more than one empty property, think about why that may be, and consider what you may be doing to drive tenants away.

Before initiating a purchase, be sure that you are negotiating with a customer-focused company. Bad customer service can cost you a fortune when dealing with commercial property, so do your homework.

Have financial statements available to show to potential lenders if you want to purchase commercial real estate. These documents give the banks the information they need in regards to your financial responsibility and how secure their investment would be if they were to give you a loan to meet your goals.

When you want to invest in apartment complexes, remember that small properties sometimes come with more problems than larger properties; because of this, some seasoned professionals in this industry suggest not investing in properties with less than 10 units. However, you need to research each property you're interested in yourself, and determine what the best investment is for you.

Address any environmental issues or hazards before you sign the final purchase paperwork. For example, one of the most important environmental concerns that every property owner must deal with is hazardous waste disposal. Failure to remove waste properly can be a huge problem. Once you purchase a commercial property, hazardous wastes and environmental issues become your problem.

Posting a newsletter online, using social media or otherwise staying in touch with previous clients helps investors remember to send new clients your way. After completion of a transaction, you should work to cultivate an online presence.

Make sure you consider size and square footage when checking out potential properties for an expanding business. Unless you plan to move your business in several years, you should purchase a piece of commercial property that will allow your business enough space to grow.

See how your considered firm measure its results. Find out what they mean when they say a property has enough space, that a negotiation went well or other critical factors used in assessing and acquiring commercial property. Understanding these things before signing will only be helpful.

Commercial real estate has many brokers to offer. Some agents represent tenants only, while brokers work alongside tenants and landlords alike. A tenant's-only broker may serve your needs better than a full service broker.

Educate yourself on the meaning of net operating income (NOI), a term associated with commercial real estate used for investment purposes. To be successful, you must stay profitable.

Be aware that not all commercial brokers are alike. Choose the real estate broker who will best help you meet your needs. There are agents who only represent tenants and there are full-service brokers who work with both tenants and landlords. A broker who works only with tenants should have more experience and should represent a better choice for you.

Clarify how much space is available in square footage. There are two ways of measuring commercial real estate property. You can measure in usable square feet to determine the size of the area in which you will conduct business. You can also measure by total square feet for the complete size of the edifice, including areas that will not be in public use. In order to make the whole transaction much more clear, it is important to know both square footage totals.

One way to do this is to use the internet. Either send out a monthly commercial real estate newsletter, or be active on social media related to commercial real estate. After completion of a transaction, you should work to cultivate an online presence.

Inspectors should always have credentials available for viewing, should you require their services in your real estate dealings. This should be especially noted for those who work in pest removal since there are actually a number of non-licensed people who work in this area. This can avoid future problems after the sale.

Before you start out on your search for the perfect commercial property, you should be fully attuned to the specifics of your business needs. You should know the minimum square footage necessary, as well as any must-have amenities. Perhaps you could buy more than you need right now if you can afford to and you plan on expanding your business.

When you are buying or selling commercial real estate, always negotiate. It is important that your concerns and opinions are heard and recognized by the other parties; you must always put forth the effort to ensure fair pricing for the commercial property.

Be sure to enlist the assistance of an excellent real estate attorney to review any contracts or financing documents for your commercial properties. Make sure you keep your name clear of all threats if you happen to have anything go sour with any real estate endeavors you have set forth for yourself.

Searching out larger commercial properties can help you in the long run, so keep an eye out for them. Managing a slightly larger unit does really take that much more work, and doing so actually increases your profit on a per unit basis.

Prior to listing your property for sale, you should first hire a reputable, professional inspector to go over the place. You should consult with them and see if anything needs to be repaired; if it does go ahead and fix that as soon as possible.

Let people know the exact amount of square footage available. Two different measurements are commonly used in commercial real estate. One is a measurement of the usable square footage based on the available square feet based upon space that can be used by the business. The other measurement is total square feet, which will include walls and spaces that cannot be inhabited. Determine both square footages for smooth business transactions.

Get on the internet before you jump into the commercial real estate market. Create a profile on LinkedIn or put up a personal web site. Explore SEO techniques that will elevate your website in internet search rankings. Your goal is to enable people to understand what you are all about simply by typing your name into their search engine.

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.

Consider any tax benefits you'll receive through a commercial real estate investment. Investors typically receive interest deductions in addition to depreciation benefits. There is also "phantom income", which is taxed by the government although not received by the investor as cash. Before you make any investments, be sure you are aware of this kind of investing.

Stay on the lookout for sellers who are enthusiastic about making a deal. Sometimes you will find sellers who are willing and able to sell well below the market value. A motivated seller is the best indicator of a great deal.

If you are taking out a commercial loan, you must pay for the appraisal yourself. Your bank will refuse the appraisal if you try to submit it. Order the appraisal yourself to avoid a headache.

Have clear ideas in mind what you want out of a possible property before you buy any commercial piece of real estate. Do you plan to have your own company on the premises? Do you plan to lease it? When you have specific guidelines for what kind of commercial property you are looking for, you can narrow down the results to save time and effort.

Put your energy toward one investment at a time. Concentrate on one particular type of commercial real estate at any given time, whether it be office blocks or retail space, for example. It is best to be able give each investment your undivided attention to ensure the best possible results. It's better to master one part of commercial real estate than it is to get mediocre results in a variety of categories.

Make sure that the commercial property has access to all utilities needed. Every business has unique requirements, but for most, electric, water and sewer access will be required.

If you are novice investor, you should start off with just one single type of investment. Choose one property type you would like to start with and give it your undivided attention. It's good to find a niche and do very, very well at it rather than flitting from one investment type to another without much success.

When you are selling a commercial property, always make sure to include all buyers; this includes local and non-local buyers. Many people only think locals will buy their property, and that's a mistake. There are many private investors who would purchase property outside of their local area if the price is right.

If you have the intention of offering your commercial real estate for rent, look for buildings that are simple and solid in construction. A well-built building will attract tenants quickly because tenants want a property that is solid. In addition, these properties are low maintenance because they don't frequently need repairs, a benefit to the owners, as well as the tenants.

Investigate the land conditions and environment that the property is located in. You'll be liable for cleaning up after environmental incidents. Is the area around your property prone to flooding? You may want to reconsider your choice. If you are thinking about purchasing a property, be sure to contact an environmental assessment agency to get important information.

Create and maintain an online reputation by first, starting a blog. By doing this, you will be able to locate people who are looking to buy or lease the type of property you offer.

Focus on a single commercial property at one time. Focusing on offices, land, retail or apartments will help you do well with investing. Every category expects and even needs your complete and undistracted focus. Master one type of investment at a time. Mediocre profits from several types of investments aren't worth the effort, but major profits from one type of investment is.

If you are trying to choose between two good commercial properties, think big. Getting enough financing is a huge undertaking, no matter if you get a ten-unit complex or a larger twenty-unit one. However, buying several units will cause the price of an individual unit to decrease.

You'll have to pay more upfront for a commercial loan than for a residential loan, and there are other differences between the two types of loans. Seeking out the greatest lenders and putting your ear to the ground about investment possibilities is a great way to possibly qualify for a commercial loan.

Negotiating is essential. Ensure that your opinion is known, and wrangle for the best price you can get on the property.

You should do this to ensure that the terms are the same as the pro forma and the rent roll. If you don't read over these terms, you may find something that's not the rent roll and it could change your pro forma.

Consider online references that contain information written for both real estate novices and veterans. No one can ever honestly claim that they know too much.

Commercial real estate is more time consuming, confusing and involves more than just buying a home. The added time and effort are crucial, however, to getting the return that you want on your investment.

Bring your digital camera along, and use it. Try to make sure that your pictures shows the defects.

Think about environmental hazards that you may be responsible for taking care of. One huge concern is when the property you currently own has problems with hazardous waste materials. You need to fix these sorts of issues on your property, even if you did not cause them.

Find out how any firm you have under consideration defines success. There are a number of details that will affect you critically, such as methods of negotiation, property selection criteria and the amount of space you need. Find out exactly how these sorts of considerations will be determined. Having an understanding before joining up with them is most helpful to you.

A major threat to investors in commercial real estate comes from the fluctuation of interest rates. In the current volatile economy the interest rates are rising and falling without warning, which can also dramatically affect the cost of financing an investment. Think about this as you shop for properties.

If you trying to choose between two or more potential properties, it's good to think bigger in terms of perspective. Regardless of which way you choose, coming up with the capital is a common factor, so often times it will be be worth digging a little bit deeper to get the larger property in order to maximize your long-term profits. This is generally like buying something in bulk, the more you buy, the less it is is per unit.

If you are looking for a business property, always think larger than you currently need. Look into properties that will allow your business to grow, otherwise you will be purchasing a new space in a couple of years.

Before you begin seeking commercial real estate property, be sure to identify your requirements. Write down the things you like about the property, important features are office numbers, how many conference rooms, restrooms, and how big it is.

Know exactly what your business needs before shopping locations. Make sure you have an idea of the type of office space that you want to work in. If you're interested in eventually expanding your business, buy more office space than you currently need. This saves money in the long run because prices may be higher by the time you're ready for more office space.

Try using feng shui in your commercial properties or home office. Two of the basic insights of this approach, removing clutter and emphasizing open space, are sound design principles that make a property more attractive.

You can save money on repairs or cleaning costs. If you own the property, you're usually responsible for cleaning up or paying for it. It can be very expensive for you to clean up your property and dispose of the waste. Find a company that does environmental assessments and have them do an analysis and report. This can cost you a good bit of money, but it will save you in the long run.

When shopping for an honest brokerage, ask the representative how the company makes money. An honest real estate firm will usually answer these questions with ease and may even provide documentation to some extent. Be certain you know exactly what specific benefit they will draw from taking care of this transaction for you.

Be calm and patient when looking at commercial real estate. Do not make impulsive decisions. You'll regret it quickly if your lack of research results in a property without much re-sale value. You may have to wait months or even years to find the ideal investment.

Ask your real estate broker how they measure success and failure to determine if you have hired the correct one. Ask them how they measure their results. You should feel comfortable with their explanation of the strategies and methods they use. If your own views differ greatly from a potential broker, you two may be incompatible for a business relationship.

When writing up a letter of intent, make sure to keep your offer simple and straightforward, focusing on the bigger issues at first and then figuring out those pesky, little details later. This will help to reduce some of the tension in initial negotiations and will also make gaining agreement on some of the smaller issues much easier.

You need to know the details of emergency maintenance procedures. 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 getting a loan for your commercial property, make sure you obtain a good attorney that will explain all details to you. In case a real estate transaction goes awry, you need to have competent assistance ready to help you.

Look for people who are eager to make sales. You will have to actively find them, especially those who are motivated enough to sell the property below the market value. Until you locate a great deal, nothing moves one way or the other when it comes to real estate. Once you identify a great deal, it is usually offered by a seller who is eager and very motivated to sell.

Look for a myriad of financial allies, from family members and friends to professional lenders who can help you come up with the necessary cash to buy commercial real estate. Look into and set up contracts that offer you one of two options, either one that gives you an actual percentage from the income of the property you are dealing with, or fixed interest rate.

It may be necessary to invest in some renovations before you can move into the space. This may be simple changes such as painting or rearranging furniture. Some of these improvements may require the removal or addition of walls to create the appropriate floor plan. Be sure to negotiate who is responsible for these changes ahead of time so that you do not have to pay for the full cost.

You probably do not want to sign a lease form that is standard when you are leasing a commercial piece of real estate. Large companies might insert extra requirements in the form, and they are often exceptionally lengthy. By carefully reading the document, you could avoid the pains associated to certain standard commercial leases.

Before paying any agent, check his or her disclosures; these can tell you a great deal about the agent's character and ability. It is important that you realize that you may be entering a dual agency transaction. In this case, the real estate agency represents both sides of the transaction. The real estate agency will represent both the seller and the buyer. When it comes to dual agencies, both parties should actually agree to it and it should be disclosed.

Don't make any offers on commercial property before you've found a lender. Talk with your friends and other investors to create a short list of the best lenders in your area. Research all the lenders on your list and determine which one you'd like to work with. Talk to the lender and make arrangements for financing prior to purchasing your first property. You will find the process of getting your loan to be much easier when you have taken the time to get all of your details arranged ahead of time.

Always be in a position to understand, and move on a deal that is beneficial to you. Professionals in real estate are able to recognize great deals. Pros understand when they need to walk away from some deals, so they always have an exit strategy ready to put into play when it is necessary. They can also quickly spot damages needing repair, have the ability to calculate risk and can do the calculations that let them know for sure that their monetary objectives will be fulfilled by the property in question.

Advertise commercial property both to local and distant buyers. Do not assume that only local investors will be interested. Many private investors are interested in cheap or affordable properties in other areas of the country or world.

Look at the surrounding neighborhood before you decide on purchasing a specific commercial property. If you purchase it in a more affluent neighborhood chances are your business will be more successful, because the pockets of your potential clientele are a bit deeper. If your business services will do better in a poor neighborhood, buy property there!

Don't underestimate the value of networking with other investors or with private lenders when trying to purchase commercial real estate. Often, commercial real estate is sold before ever being listed as being for sale. The only way you might find out about it is through the network of people you have carefully developed over time. Private lenders and investors are often in the know and can be key to informing you of a potentially good deal.

Ensure that you have reviewed your contracts before negotiating leases so that you minimize the chances of default. This decreases the chances that the tenant will default on the lease. A default is frustrating and costly.

At first, you may be required to spend a significant amount of time on a commercial investment. The time aspect of the investment includes finding the property and making any repairs to the property. Don't abandon your investments because they are eating into your personal time. Your rewards will come later.

Do your best to have your properties occupied at all times. Maintenance and upkeep costs for commercial property can be substantial and rental income is essential for paying those costs. Figure out why you have spaces that are consistently open. In some cases, you might need to do some problem-solving so that tenants will want to rent these spaces.

When selecting a real estate broker to work with, you should ask about their negotiation strategies. Ask them about their background, such as what training they've completed or experience they have. When choosing a real estate broker, make sure that they are ethical when doing business. Go ahead and ask them for examples of any past negotiations, including those that were successful and those that were failures.

Learn how each real estate broker intends to get you the best price before settling on one. Find out about their experience and training. You want to ensure that the broker has good ethics, and is capable of obtaining the best deals possible. Ask them to show you examples of past negotiations, both successful and unsuccessful.

If you want to have commercial real estate investments financed, then you need to prove your financial stability through both personal and business statements. The lending institution will think you are not very responsible with your money and they may not lend it to you.

Be mindful that rent considerations, and future intentions, are key to ensuring a good path for your investment when preparing a new lease agreement. Decide the exact amount of rent you want to accrue each month prior to having even a first conversation with a possible renter. By deciding on your rent in advance, you can ensure that you'll reach your investment goals once you get some tenants in place.

Pay attention to the location of a property. Think about the neighborhood your property is located in. Also look into growth of similar areas. What you are seeing now in terms of commercial potential might be very different a few years from now.

Before you make a large investment in real estate, take a look at local income levels, unemployment rates and the expansion or contraction of local employers. 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.

A borrower must be the one who orders an appraisal in a commercial real estate loan. The bank won't accept it as valid. Make sure you have all your paperwork in order before you even apply for your loan.

Don't become greedy and over-inflate your real estate asking price. Many things alter the value of your property.

Take digital photographs of the unit. Make sure your pictures clearly show any damage or defects, including carpet stains, holes in the walls or discoloration of plumbing and counter tops.

Changing interest rates are a big threat to people who invest in commercial real estate. The current economic conditions will make interest rates go up and down without being predictable; this can be a disaster for an investor. Interest rate fluctuations should be taken into account when evaluating your long-term goals and profits.

Look for properties with several units. The more units that are in your building, the more money you will get rom renters. A lot of people who invest in real estate do not even give consideration to properties that contain fewer than ten units. It is generally accepted that a higher number of units correlates to higher profits.

Location is crucial when it comes to commercial property. Consider the neighborhood of the property. Compare its growth to similar areas. If you make an investment in real estate, it is in your best interest to ensure that your property is in an area that will still be growing in five to ten years.

When investing in commercial real estate, go bigger. If you believe that you can easily manage five units, you can probably easily manage 50. That many units still need commercial financing like the larger ones do, and the larger ones generally cost less for every unit.

Find a variety of financial partners, from friends and family to professional lenders, to ensure you have a cash flow available to purchase commercial real estate. Set up contracts which either allow you to repay the loans via a fixed interest rate, or give them a percentage of your income from the property.

Secure appropriate financing before going forward. Financing for a commercial loan in real estate investment differs from the rules that apply to home loans. Commercial loans have some significant advantages that investors can take advantage of, that people buying personal property cannot. Commercial loans have larger down payments, but you may avoid any personal blame if it's a bad deal, and the bank won't mind as much about you borrowing money for the down payment from friends and family.

Be clear about the fact that there is a life expectancy connected with every property. You will have to pay for repairs and maintenance for your property; make sure you have a good idea of how much you will have to spend. The property could need major improvements like a roof replacement or total rewiring. Pretty much every building will experience this at some point, and some will need more work than others. Be prepared for when these necessities come up.

Using a checklist is useful when you have multiple properties that you are considering. Get the responses from the first round of proposals, but make sure the property owners are aware of this before proceeding. Do not be afraid to let it slip to the owners that there are other properties that you are considering. This may help you by creating a sense of urgency on the seller's part.

Pest control is something you should look into when renting or leasing a property. Especially when you rent in an area known to be infested by bugs or rodents, ask your rental agent about pest control policies.

Try feng shui in your home office as well as commercial real estate buildings. Two primary fundamentals of feng shui are the concepts of open spaces and de-cluttering, and these are both attractive to certain buyers.

Consult your tax adviser before buying your first commercial property. A good tax adviser can let you know what percentage of the income will be taxable, and exactly how much the building will cost you. The adviser can also assist you in finding areas with comparatively lower tax rates.

Know what to expect from your realtor by asking them questions about successes and failures. Find out their criteria for deciding whether a result is good or not. Make sure you understand their methods and strategies. Don't work with any real estate broker whose beliefs and methods aren't in line with your own.

Before you begin searching the market for a new property, outline what you need. Take the time to outline what your needs may be, from number of rooms to types of spaces needed. This should include the appropriate number of washrooms based on people present.

If your property deal requires inspections (as it should), look at the inspector's credentials. Always check the credentials of workers in insect and pest control as many of them aren't licensed. This will avoid bigger problems in the post-sale.

Plan on doing some improvements to your new commercial space before you can inhabit it. In some cases, these may be minor changes, such as a new coat of paint for the walls or a new arrangement of furniture. In many cases, walls must be moved and floorplans rearranged. Talk to your landlord about these improvements. Try to negotiate a deal where the landlord pays for some, if not all, of the cost of improving your space prior to moving in.

Pest control is a very important issue that you need to be aware of when renting or leasing. Talk to your rental professional regarding pest control policy if you rent in a community known for bug or rodent infestation.

If you have the intention of offering your commercial real estate for rent, look for buildings that are simple and solid in construction. Because it is apparent that these types of structures have been kept in good condition, it greatly increases the chances that tenants will be quick to rent the space. Not are the buildings more sturdy, there will be less maintenance issues for the owner and the tenant.

When you are first starting out in real estate investing, the best thing is to keep it simple and start with one investment strategy at a time. Begin by selecting which type of commercial buildings you would most like to purchase and then devote all of your time to those types of properties. It is advisable to try to do a good job at one type of investment as opposed to being average on a lot of different types.

When choosing a broker, investigate their years of actual commercial market experience. Make certain that they have experience and expertise in the community you are dealing in. Sign an exclusive agreement once you've found a broker you want to work with.

Be mindful of the fact that all pieces of property have specific lifetimes. If you ignore this, it could cause you to spend more than you had planned keeping up the property. It may need something like a brand new roof, or an updated electrical system. All buildings eventually need maintenance to maintain the quality of your investment. Have long-term plans for handling these repairs.

Bear in mind that, with any newly written lease, rent considerations and strategies will be essential to the future of your investment. Figure out what you will charge for rent before speaking with potential tenants. This will let you reach your goals and achieve an acceptable return from your investment.

Commercial loans differ in several ways from residential loans; for one, they require a higher percentage deposit. To find a good commercial loan, work your network of professional contacts to learn which lenders are best and whether there are any investment possibilities available in your area.

The first step is to find the best lender to finance the transaction. The process of getting a commercial loan is vastly different to that of a residential mortgage. Depending on how you view the situation, they are often better. Commercial properties require huge down payments, but regulations make it possible to avoid responsibility if things go bad. Additionally, banks aren't as picky about how you come up with the down payment.

A letter of intent should be simple to begin with, covering only the larger issues. Once an agreement on those terms are made, you can begin addressing the smaller issues. This approach lowers the overall tension level and actually makes it easier to reach agreement on the details at the end.

Always think ahead when considering a real estate investment. If you ignore this, it could cause you to spend more than you had planned keeping up the property. It could need a brand new electrical system or an updated roof. All buildings eventually need maintenance to maintain the quality of your investment. It is important to build these expenses into your long term budget.

Keep in mind when considering investing in apartment complexes that very small complexes can sometimes be more of a hassle than larger complexes. For that reason, some experts in the field recommend avoiding properties that have fewer than ten units. Try to research your situation, and make the best decision for yourself.

There are many benefits to building a personal relationship with your area real estate brokers, lenders and other investors. For example, those in your network can give you the "inside scoop" on properties, even those that are unlisted.

Before you present an offer for commercial property, be sure to have your funding source in place. Get recommendations from friends and fellow investors before choosing a local lender. Instead of moving forward with a deal, you must first conduct extensive research on prospective lenders. It will be easier to qualify for your loan when you have all the details organized in advance.

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. Do not proceed past initial proposal responses, unless you inform the property owners. You should not have any hangups about letting the owners know that you are still deciding on other properties. It can also get you a great deal on the property you're touring!

Before signing the paperwork to lease a commercial property, check the lease form. Large real estate companies often slip in additional requirements or covenants into lease documents, which could be very long at times. By carefully perusing the document, you'll avoid potential headaches and heartaches that a commercial lease sometimes produces.

Take a look around properties you are interested in. Consider going with a contractor when you are looking at places you want to buy. Start negotiations by making a preliminary proposal. Think long and hard about the counteroffer before deciding to accept or decline.

When purchasing commercial real estate, start by knowing your goals for the property. Are you actually going to run a business in the building, or lease it to another business? If you plan out your goals in advance, you can look only at properties that correlate with those goals.

Check out where the utility hook-ups are on any commercial property. Every business has unique requirements, but for most, electric, water and sewer access will be required.

Check any disclosures a potential real estate agent gives you carefully. Make sure you understand the potential for the existence of dual agency. What this means is that your chosen agency has an interest in buying and selling the property. When dual agency happens the Realtor on behalf of both parties. An agent should always disclose dual agency, and it must be acceptable to both parties.

Consult with your tax adviser prior to purchasing any commercial real estate property. Your tax adviser can inform you of all of the potential costs related to your investment, and also tell you what percentage of your profits will have to be paid in taxes. Work with them so that you can find a lower tax area.

Commercial real estate investors should remain conscious of the possibility of drastic inflation over the next few years. Investors in the past were protected by a clause that was built into any agreement that adjusted for inflation using Consumer Price Index comparisons. This generally doesn't happen anymore, so unusually high inflation could cause unexpected losses.

There isn't just one type of broker for commercial real estate. Some are full service brokers, and they work on behalf of landlords and tenants. Others are agents who represent only tenants. A broker who works only with tenants should have more experience and should represent a better choice for you.

You can make a significant income from commercial investments. This being said, it takes money to make money, so it is important to protect yourself and your investment by putting in your maximum effort to each and every deal. Keep the tips you just read in mind to help you make money via your investments.




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