If you are hunting among multiple properties, make a checklist for touring sites. Take the first round proposal responses, but do not go any further than that without letting the property owners know. There is nothing wrong with hinting that you have other properties in mind. It could even get you a good deal.
When financing your commercial real estate endeavors, you should ensure that you can show the bank that you are willing to invest a significant amount of your own funds in the venture. Most commercial real estate investments require a down payment, earnest money, closing costs, and possibly points. Banks will be more willing to lend to you if they see that you will personally be sharing in the risk.
If you are in a partnership situation with commercial real estate, you should get a non-recourse loan in order to protect yourself. Non-recourse means that you are not personally guaranteeing the loan. This is important because it allows you to be removed from the loan if the partnership doesn’t work out. Thoroughly tour every potential property. It may be a good idea to take a professional contractor with you when you check out properties you are interested in purchasing. Start the negotiations, and make the necessary preliminary proposals. Don’t decide on anything without careful consideration.
As you have seen, commercial real estate can be a very lucrative investment. Pay close attention to the advice presented in this article to circumvent potential problems, and build a successful career in commercial real estate.
Do a walk-through and close evaluation of each property you are considering. Look into having a professional contractor accompany you as you take a look at the properties you’ve been thinking about purchasing. Set the stage for future negotiations by putting forth the preliminary proposals. Evaluate and reevaluate the counteroffers before making any kind of decision one way or another.