Investing in commercial real estate is a great way to grow your wealth, whether you are looking to buy low and sell high or simply looking to make monthly profits from rent revenues, commercial real estate is a great venture. Many of those who invest in residential real estate often shy away from commercial real estate, either through a lack of funds, a lack of confidence or a lack of industry knowledge. The truth is that if you can get into this area of real estate then you could be looking at some great profits, providing you get a good deal, in order to get a great deal here are some tips to help you out.
Make Sure You Use a Broker
It is important that you use a broker for your commercial real estate deals, failing to do so might save you a little bit of cash but it will leave you vulnerable in the market. Brokers like The Welfont Group are industry experts, they can make offers and negotiations for you, find the type of properties that you are looking for, manage your assets and help you to make a bigger profit on your purchase. There are those who aren’t in favor of using a broker and maybe once you have a wealth of experience you will opt to go it alone too, personally speaking I would much rather have an industry insider on my team and that is why I think using a broker is best.
Look for Motivated Sellers
When you are searching for your property of choice and in particular the best deal, you need to try and find motivated sellers. This can be easier said than done, in order to do so you need to create as many contacts as you can within the industry, this way you can be fastest on the trigger when companies go into liquidation or bankruptcy, you can swoop ini with a low offer and get a great deal. Another way to find motivated sellers is by making them come to you, advertise that you wish to buy offices, factory spaces or whichever type of real estate you are looking for. You will be surprised at how many wish to sell when they know they have someone who wants to buy.
Don’t Ignore Run Down Properties
If you see a property on your search that is dilapidated, don’t discount the idea, it is very often that case that with a little bit of investment and love, that you can restore it to its former glory. The beauty of these properties is that sellers want to get them off their hands and will often accept a reduced offer, even once you’ve invested money into renovation costs, you can still end up spending far less than on a property that is in better shape. Many buyers overlook these properties which means that you may end up facing less competition for the property.