Tips On Buying Commercial Real Estate

If you want to invest in real estate you need to look at commercial real estate deals. This is where many real estate lenders and hard money lenders are investing their money. Commercial real estate finance is now taking a hard hold for many new investors.

Property agents have also noticed an upturn in commercials. This is a great deal for them as they turn their concentration to these properties. They typical have a list of investors that they can now introduce to this side of investing. So what is the first thing you need to do to find these properties?

To find commercial real estate deals, find a broker that has dealt in this area for a while. An agent with connection can bring you many good deals. Just like a residential agent, they can do a lot of the research for you.

An agent that has connections in commercial will be able to bring you new deals. You want this person to be Internet savvy. The Internet has many resources for investing that you would not be able to find otherwise. The Internet is the future of listings for Commercial Deals, just as it is now for residential deals.

One thing to pay close attention to is requesting an environmental hazards report. These reports will give you information on this property. It will tell you if this property has in the past been associated with hazards clean up. This is critical since a clean up again can cost a lot of money.

Make sure when you find a good agent use him to buy your property. He will have all the forms and procedures to you buy a property for you. Even if you find a property yourself, always ask him to check it out for you. He can save you a lot of money by getting a better deal than you could.

Do worry about their fees. They usually save you enough in the deal to pay for their fees. And remember their deal has already considered location. The right location is one of their key criteria in finding deals for you. Once you find a property you like, you need to make an appraisal. It is more difficult to make an appraisal on these types of properties, since like properties are not always close by.

Getting the best deal will help to get you better financing. Lenders generally offer LTV;s of about 75% to lower their risk. The property rental value is considered when the buyer is qualified for the financing.

When you decide to buy a commercial property, your choice of funding can originate from many different sources. You can approach hard money lenders to cover certain costs that might not be covered by normal commercial real estate finance. SBA loans and private lenders are also a good source of money.

About the Author

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