United States real estate for the commercial sector has seen better years. The slump is favorable for investors, who can now find commercial properties at prices that are a fraction of what they were a decade ago. Making a profit still involves careful research, marketing sampling, and proper renovation.
The best case scenario in purchasing a property is to have interest in it with other businesses in the area. Start calling businesses, or making personal visits, to see if they would be interested in signing a lease for a price that is cheaper for them. Try to make it worth their while so you can almost guarantee a lease before you purchase and fix the property up. That way your investment is safe and sound and free of risk.
Commercial designs that also include apartments or living areas have been the best selling over the years. This allows business owners to live directly near the business, save money on home living, and allows them to further their dreams of owning a successful business. Residential zoning mixed with commercial zoning isn’t as popular, and many commercial properties don’t include properties.
Bartering is a process when buying real estate property, and you shouldn’t be afraid of doing so. Most real estate properties for sale right now are on the market because the investor is desperate to get rid of them. Take advantage of this fact and make an offer that is below the asking price. Even if you don’t get the bid, you will get experience in talking down price points to an area where you can make money on the deal.
Actually finding a buyer or lessee for the property won’t be easy. Talk with the current real estate owner and see what price they tried to lease the property out for. Always assume that you will have to ask for less, even if you do upgrades to the property. Also consider sprucing the property up by fixing parking lots, building deformities, and inside fixtures or lighting.
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.
In Conclusion
Commercial property is harder to sell or rent that residential property. If you are set on finding commercial property due to the market conditions, realize that a lot of full-time work will be needed to make a profit from the situation.
Learn more on Cincinnati Edge Real Estate Group and Edge Real Estate.
