How to Land a Great Commercial Real Estate Deal

Investing in commercial real estate can be a lucrative endeavor, but not all properties are created equal. Finding the right property — one that’s going to be a success and earn you money in the long run, instead of one that costs more than it’s worth — is tricky business. What’s the key to landing a hot property? Follow these tips as you hunt for the best deal.

Know the ins and outs

Even if you don’t work in real estate, you have to think like a professional. You have to know which traits to look for and which to avoid, which markets are valuable, which trends are getting hotter and which are fizzling out. If you don’t know what to look for or what to prioritize in your search, consult a local real estate professional or start following real estate publications and online groups for tips.

Evaluate the property

In addition to knowing the market trends, you also have to be able to evaluate the physical characteristics of a property. You’ll want to know what costs to expect in the future (e.g., repairs, replacements, inefficient and expensive utilities) and then determine if the earning potential is worth it. Having a good eye is crucial.

Assess the seller

Finding the best deal isn’t all about the condition of the property or the market where it’s located; sometimes it’s about finding the right seller. While you’re searching for a commercial property, pay attention to the seller’s cues. If they seem eager, it could mean something is wrong with the property, but it could also mean they just want to move things along — in which case, you can probably negotiate a sale below market value.

Keep options open

Perhaps the most important step of all is to keep your options open. You never know when or where a great property will show up. Try not to limit your search to a certain area or have too many conditions for your dream property. Also, expand your search beyond the Internet. Check classified ads in the local paper. Your next property could already be waiting for you.

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