3 Tips for a Hot Commercial Real Estate Deal This Summer
It’s common knowledge that investing in commercial real estate leads to way bigger financial gains than residential real estate investments. But finding the best properties and deals is not always easy. What makes a good property “good”? And even if it’s a good property, what are some red flags you should be searching for when making a deal? These tips will help you navigate the waters.
- “Farm” neighborhoods – “farming” is a term commercial real estate developers and investors use which essentially means studying a neighborhood. If you’re considering investing in a piece of commercial real estate, it’s imperative to take the time to go to open houses, speak with other real estate owners in the area, and check out other vacancies. This upfront work will help you understand if you’re about to invest in a dud or make a bad deal, saving you tons of money and heartache down the road.
- Find the right sellers – the best deals are made with sellers who are eager to sell their properties below market value. If a seller doesn’t feel the need to make a quick sale, they will wait for a buyer who is willing to pay their desired price. So as a tactful commercial real estate investor, your job is to find sellers who need to make a deal now!
- Looks through the eyes of a landowner – if you want to have any measure of success, you’ll begin to look at properties with the eyes of an owner. For example, are there any damages which will need repairs? Assessing risk and understanding what drives the value of a property are essential elements of identifying the right properties. It’s only then you’ll be able to close an excellent deal.
The commercial real estate game is full of twists and turns, little tricks only industry insiders are aware of. This is why we always tell our clients to do their homework before they make a deal or buy a property; there’s a lot of money to be made, so don’t get stuck with a lemon!