here are many “insider” achieve and as a result, often
commercial real estate abandon real estate investment
secrets. One of the most entirely without realizing just
important secrets is knowing the how lucrative it can be.
right questions to ask when
investigating a commercial Asking the right questions can
property investment. While I’m greatly increase your probability
not going to cover all of the of success, as can learning as
potential questions in detail, I much as possible about the world
will make you aware of some of of commercial real estate. This
the key issues. I’m also going is not an overnight process. One
to suggest some places to go for of the best place to start is to
assistance. learn about your local commercial
real estate market. In fact,
Investing in real estate is a being aware of the status of your
complex process. Unfortunately, local market can literally be
far too many people jump into half of the battle.
this complicated marketplace
without the knowledge, training, For example, when purchasing land
and tools needed to be it’s important to understand that
successful. It doesn’t help that the price of particular parcel
we have hundreds of self-styled varies according to a number of
“gurus” selling the latest factors. These can include the
no-money-down-get-rich-in-three-m relative abundance or scarcity of
inutes programs to confuse and similarly sized and located
demoralize the un-initiated when parcels, the population’s growth
things don’t work out “as trends for the area, and the
advertised.” These first-time proximity to good employers. Raw
real estate investors are often land buyers need to ask plenty of
disappointed in the results they questions about such factors as
local zoning laws, land use
restrictions, utility easements, One of the next best places to
traffic patterns, other planned turn to for the answers is a
development, the permit process, commercial real estate agent,
and other issues. The answers to called a “broker,” familiar with
these questions can have a the area in which you have an
profound impact on the purchase interest. You can even ask the
price of the land and its final, broker representing a specific
developed value. Where do you property. But, when asking your
go? Your city planning or questions of a broker
building department is a great representing a specific property
place to start, as is the local keep in mind that he or she is
utility company. Also check in working for the seller of that
with a title company or active property, not you. A local bank
escrow company for contacts at loan office or independent
the city and knowledge in their mortgage broker are good sources
specialties. to consult for alternative
opinions.
These aforementioned factors are
also important when it comes to Investing in commercial real
buying existing commercial real estate isn’t too different from
estate, including retail, office, investigating a crime scene. You
warehouse, and mixed use need to ask tough questions and
properties. Knowing the find the evidence to back up the
restrictions on building and use statements. It can sometimes be
of property is essential to a tough process, but asking the
successful real estate right questions will only
investment, so investors need to increase your chances for a
learn where, how, when, and of profitable transaction.
whom to ask these questions.
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About the Author:
Craig Higdon, "The Investment Property Insider," works as a commercial mortgage broker. He publishes the weekly "Investment Property Insider" e-zine and blog, http://www.InvestmentPropertyInsider.com. Visit the blog and get a complimentary report on commercial financing techniques.
