Skip to content

HEALTHY-HOME-DESIGN

  • About
    • About Contractor
    • Contractor Definition
    • Contractor synonym
    • What is a Contractor
    • Who is a Contractor
  • Connection
    • Contractor Company
    • Contractor Connection
    • Contractors Direct
  • License
    • A Contractor
    • Construction Contractor
    • Contractor License
    • Contractors
    • Main Construction Site Personnel
  • Plan
    • Contractors Plan
    • General Contractor
    • How to Become a Contractor
  • Salary
    • Contractor Dictionary
    • Contractor In
    • Contractor Out
    • Contractor Salary

HEALTHY-HOME-DESIGN

Quality-Service-Integrity

What To Look For When Purchasing Commercial Real Estate

March 27, 2019 by Louise B. Delia

When it comes time for you to begin owning commercial real estate, you may wonder where to begin, as there are so many things to consider when owning this kind of property. The tips in this article can provide you with what you need to know to better care for your commercial property.

Cleaning up your neighborhood can work wonders for your property value, especially if there are several run-down or abandoned buildings in your area. The best thing to do is report any health or safety risks to the authorities. These types of safety risks can include, shattered windows, rusty fences, debris and things of this nature. If the authorities will clean out the neighborhood for you, you can end up saving money on demolition and increasing the overall, neighborhood real estate values.

On the real estate market both buyers and sellers are well advised to remain open until a potential deal is well and truly sealed. It is tempting to commit to a particular offer or home when the sale process is just starting. There is a great distance between an interest expressed and money changing hands; homeowners who commit themselves to a deal too early risk getting taken advantage of.

If you are a landlord looking to rent out a house or apartment, it is crucial that you have the tenant fill out an application and go through a credit and background check. You do not want to be stuck with a tenant who won’t pay rent or trash your house, so also ask for references.

One of the most important metrics that an investor can use to judge the attractiveness of a commercial property is the NOI, or Net Operating Income. To calculate NOI, subtract first-year operating expenses from the property’s first-year gross operating income. A good investment will have a positive NOI, which indicates that the property will bring in more cash than it will require to operate and maintain it.

Be sure to do research on commercial lenders. You may be able to find a great deal somewhere you were not expecting. Also note you will be required to put up a hefty down payment. Keep in mind that if the deal falls through there typically will be no personal liability and commercial lenders may be lenient if you borrow a down payment from a different lender.

Make sure to evaluate the neighborhood, as well as how the area will develop. Location is almost always the most important key in finding the right commercial property. Attend open houses and talk to neighborhood home owners who can give you some tips about their neighborhood. An honest answer will always come from people who live there.

As you have seen, owning commercial real estate has many things to take into consideration. There are so many things to do and check for, just to make sure you can keep your property. All it takes is some research and common sense to make sure that you take the best care of your commercial property purchase.

Post navigation

Previous Post:

Advice That Will Help You If Need Plumbing

Next Post:

Useful Tips For Roof Maintenance And Repair

Navigation

  • ABOUT US
  • DISCLAIMER
  • PRIVACY POLICY
  • SITEMAP

Recent Posts

  • Types of projects a mini excavator is built for
  • You Do Not Need A Plumber To Help Fix Your Pipes
  • What You Need To Know About Interior Design
  • Don’t Let Interior Design Overwhelm You; Read This
  • Valuable Tips About Commercial Real Estate

Categories

  • About
  • Connection
  • Contractor Connection
  • Contractors
  • General Article
  • License
  • Plan
  • Salary
  • Uncategorized

Calendar

March 2021
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031  
« Oct    
© 2021 HEALTHY-HOME-DESIGN | WordPress Theme by Superbthemes