Ask anyone for advice on flipping commercial real estate, and they will either tell you that you're crazy for considering it, or that you are potentially buying a gold mine. The economy hasn't been the best lately, which has reduced demand. This leads to many interesting investment opportunities.
Market research is the best way to guarantee your investment won't flop. If there is an interest in the area for business, whether large or small, then you have a better chance at renting out the property or selling it once flipped. You should start calling businesses to see if they are happy with their lease, and see if you can get a deal even before you buy the property. It's possible to have interest lined up even before you own the real estate.
If the property is zoned for both residential and commercial activity, you have a better chance of selling. Those who are willing to start their new business will sometimes live in or above the leased spaced to save money. Many downtown areas of old cities have stores that have apartments on the top floor: this is the same business practice.
Talk the real estate owner down as much as you can, and don't feel shame in doing so. The market is tough, and you both should be aware that making a profit from the sale is going to mean tough work. Offer to give a price at least 10% less than what they are asking as a start for bargaining. Also note any damages to the property to add to the deduction, or try to write off any handling fees in the purchase.
If there are no tenants in the current property, then you should ask the owner why that is. This will be valuable information that you can use to either choose not to own the property, or to fix it and make the property more appealing to others. If there is literally no interest in the property at all, you should instead look at other properties to avoid buying real estate that has no value.
Leasing a property can be profitable over a long period, but a quicker profit is made from selling the property outright. To do so, you must be certain that the market value of the property is higher than what is being asked for. You will also have to find another investor or business interested in buying it, which can take a long time. In general a quick profit in commercial real estate is not often heard of.
Closing Comments
Real estate is a dangerous investment gamble. Make sure all of your bases are covered, and start talking to commercial real estate brokers. They will aid you in finding a nice property, bargain with the owner, and overall find a better deal than you would be able to.
Market research is the best way to guarantee your investment won't flop. If there is an interest in the area for business, whether large or small, then you have a better chance at renting out the property or selling it once flipped. You should start calling businesses to see if they are happy with their lease, and see if you can get a deal even before you buy the property. It's possible to have interest lined up even before you own the real estate.
If the property is zoned for both residential and commercial activity, you have a better chance of selling. Those who are willing to start their new business will sometimes live in or above the leased spaced to save money. Many downtown areas of old cities have stores that have apartments on the top floor: this is the same business practice.
Talk the real estate owner down as much as you can, and don't feel shame in doing so. The market is tough, and you both should be aware that making a profit from the sale is going to mean tough work. Offer to give a price at least 10% less than what they are asking as a start for bargaining. Also note any damages to the property to add to the deduction, or try to write off any handling fees in the purchase.
If there are no tenants in the current property, then you should ask the owner why that is. This will be valuable information that you can use to either choose not to own the property, or to fix it and make the property more appealing to others. If there is literally no interest in the property at all, you should instead look at other properties to avoid buying real estate that has no value.
Leasing a property can be profitable over a long period, but a quicker profit is made from selling the property outright. To do so, you must be certain that the market value of the property is higher than what is being asked for. You will also have to find another investor or business interested in buying it, which can take a long time. In general a quick profit in commercial real estate is not often heard of.
Closing Comments
Real estate is a dangerous investment gamble. Make sure all of your bases are covered, and start talking to commercial real estate brokers. They will aid you in finding a nice property, bargain with the owner, and overall find a better deal than you would be able to.
Post a Comment