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For the past few decades, one of the most increasing trends in the investment world has been to purchase commercial real estate. Commercial real estate can not only provide someone with an additional source of income, but it can also be a great tool to be used as a tax shelter and a way to build long term wealth While there are advantages to purchasing this form of investment, purchasing the right asset can be complicated. When purchasing real estate, there are various factors to consider.
The first factor to consider when purchasing a commercial real estate asset is the location of the asset. Like residential real estate, location of the asset is quite important. While a commercial real estate asset located anywhere can make money, those located in a location with poor economic fundamentals could end up losing a lot of money in the long run. Prior to purchasing an asset, an investor must perform market research to determine what typical vacancy rates are, what the average rent in the area, and research what changes could be coming to the area such as new construction or people moving out of the area.
The second factor to consider when purchasing a commercial real estate asset is the tenant quality. The amount of cash flow that you can receive from the asset is directly correlated to the quality of the tenants. When purchasing the asset, you must carefully review each tenant to determine whether you believe that they will be able to continue paying rent in the future. This could include reviewing their financial statements, ensuring that they have made lease payments on time in the past, and meeting with the tenant face to face to get a feeling as to whether they plan on staying in the property.
The third factor to consider when purchasing a commercial real estate asset is the overall condition of the asset. Like a piece of residential real estate, commercial real estate assets depreciate over time and could be subject to significant repair if they are not properly maintained. Prior to purchasing an asset, be sure to hire an engineer to fully inspect the building so you are aware of any deferred maintenance and the potential cost.
What else can I help you with?
Where can I find commercial buildings for lease?
There are a number of factors to consider when looking for office space, such as customer base, location, and space needs. A real estate agent specializing in commercial real estate would be able to provide additional guidance. A website that is listed as the #1 source for commercial real estate is LoopNet which can be found at http://www.loopnet.com/.
I am interested in purchasing commercial real estate in San Jose, can you please recommend a good website to look at available properties?
There are several websites that show listing of commercial real estate in San Jose. One of these websites is loopnet.com.
What services does John L Real Estate offer?
John L Real Estate offers a variety of services. Primarily, John L Real Estate specializes in the purchasing and selling of residential and commercial properties in the United States.
Purchasing from an estate sale?
Purchasing from an estate sale can be easy. All you have to do is go in and tell them what your budget is and what you are looking for.
Where can I find shops for sale?
If you are located in Canada then consider looking online at mls.ca. You can also contact a real estate agent at no cost to you. The agent has the experience to help find commercial real estate in your area. Do not confuse a residential and commercial real estate agent as they have different skills and areas of expertise.
What companies employ commercial real estate agents?
Companies that are searching for commercial real estate space to purchase or to rent will use the services of a commercial real estate agent. An example of a commercial real estate company is Sealy Real Estate Services, Shreveport, LA.
What are two things one should consider when purchasing real estate in Plymouth MA?
You should consider the location of the home, whether the home is a historic home or new construction. Price is also something you should consider as well.
What factors should one consider when investing in a real estate establishment?
When investing in a real estate establishment, consider factors such as location, market trends, property condition, potential for appreciation, rental income potential, financing options, and your own financial goals and risk tolerance.
When was Commercial Real Estate Women created?
Commercial Real Estate Women was created in 1989.
Reasons to Hire a Commercial Real Estate Attorney when Purchasing a Property?
Historically, one of the most successful form of investments has been purchasing an income producing piece of commercial real estate. While owning a piece of commercial real estate can be profitable, there are many legal aspects of owning commercial real estate that could be quite complicated and limit the amount of money that you could make. Because of this, it would be a good idea to hire a commercial real estate attorney when purchasing a new property. The first reason why you should a commercial real estate attorney when purchasing a building is that the attorney will be able to review the leases for you. The value of commercial real estate is largely impacted by the leases that obligate the tenants to perform certain actions, including paying rent. The commercial real estate attorney will be able to read each lease, and inform you of clauses that are concerning and could cost you money. These could include clauses that allow a tenant to stop paying rent when they want or require you to give them money to fix up their building. After you purchase the property, the attorney will help you draft leases for new tenants, which could maximize your profitability. The second reason why you should a commercial real estate attorney when purchasing a building is that the attorney will be able to research community laws that could affect your ability profitably manage the building. These laws could include laws that make maintain a certain level of landscaping, a certain amount of parking spots, or keep you lights on 24 hours per day. If the building you are buying is part of a larger retail, industrial, or office development, the attorney will read about similar bylaws that could affect your overall profitability. The third reason why you should a commercial real estate attorney when purchasing a building is that the attorney will be able to draft purchase and sale agreements and negotiate contracts with the seller for you. After the attorney has completed its review of the leases and community laws, they may want to renegotiate the purchase price. The attorney will work with the seller to negotiate price reductions, and will then draft the purchase and sale agreement based on the negotiations.
How can real estate law be helpful when purchasing a house?
Real estate law can be helpful when purchasing a house because it helps to know what the boundaries for your real estate agent are for searching for the perfect house.
What are the factors in choosing a house?
The basic things or factors you should consider in choosing a house are, what type of house you can afford on your budget and is it safety or not. And also you should consider whether the area is convinent or not. If you are buying through the real estate agency then they will consider all this factors and your needs according your preference.
