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Posts Tagged ‘commercial property’

To Whom Does This Property Appeal?

Many different people seek commercial property for sale. Information about the ideal customer is vital. Realestate auctions are great places to see which types of properties gain top dollar.

Commercial Property for Sale : Will This Sell to Commercial Real Estate Investors?

Commercial property listings need to attract buyers based on what’s in it for them. Would you buy the property if you were in the market? Is it close to town? These are the things you must consider when placing your commercial property for sale. These answers then become the key points when you list commercial real estate for sale.

How Much Will Someone Pay for This Commercial Investment Property?
This ceiling price of a property is the highest price attained by any seller in that area for a comparable property. Commercial real estate brokers will want you to make improvements, so you have to know what you have to work with for your industrial real estate for sale.

UK Commercial Property for Sale : What Fees Will a Listing Agent Charge – What Services Will They Provide?

Find out in advance how much different commercial real estate brokers will charge you to handle the sale, and what service they will provide for you. When you know what to expect commercial real estate transactions are easier. Also look at agents’ track record for handling commercial buildings for sale.

UK Commercial Property : How Much is the Least I’ll Take?

A commercial property for sale means haggling. Skilled hagglers always knows what the lowest acceptable price is. This will help you to avoid bad deals.

If you are a current investor or one who has always wanted to get started then now is the ideal time to get started. The good news is while 98% of investors are running after single family homes there are less than 2% of investors going after the real money. The big money and the easy money is in commercial real estate. 

The common belief is that you have to have a large network and lots of cash to get into commercial real estate. Almost everyone who now owns real estate in the commercial property industry who started with nothing was shown the ropes from those who already had done it. 

I managed to get an interview with one of the top real estate coaches in commercial real estate to find out more about it. Austin Davis is known in commercial real estate circles for being one of the top investors who came from nothing and his holdings over the past 30-40 years have grown alot. While using hardly any of his own money and keeping his own assets protected with trusts, corporations and keeping things out of his own name. 

When I asked him about how hard it is to get started he replied, “It’s much easier to get started in commercial than it is in residential since the property and funding for it is based on the ability of the property to generate income and not you personally it is a lot easier to get started. You do not have to have a large sum of cash. You just have to know how to get your feet in the door. After you get your first deal and can show lenders you have property – it’s much easier to get funding for the new deals you find with little cash out of pocket.” 

I was very curious about this and so I started looking into it. When I went looking I could find very few books or coaches in the commercial industry giving any direction on how to get started. I asked Austin to comment on this and he responded “Yes, the public and more out spoke investors in our country are known for doing deals with no cash out of pocket, but they don’t really share how we do it. Honestly we don’t want a lot of new people coming in our niche and getting in to it.. that’s what I hear a lot from other investors.. I think it is only going to help us long term. There is a very real fear it could hurt the industry if some how a lot of new people go in to this industry and make no mistake about it the old money does not want to share the pie.” This of course makes since and yet I was curious how income, job, credit and assets would play into commercial real estate. 

Austin replied “All of that stuff doesn’t matter a lot while investors, banks and lenders are going to look at that what they really are looking for and wanting is to see you have skin in the game.” I have heard many times myself about this and understood why. After all if a bunch of newbie’s had nothing in a deal and the investor or bank had all of its money in a deal – that’s a lot of risk. I asked Austin to expand on that and he explained “If you can get a large cash down payment put in escrow for the deal the bank or investor is very likely to give you funding if the deal cash flows well and they know a cash down payment is being put up on the deal. The kicker is when you find the ones who don’t care where the down payment comes from. Many investors and banks will want you to put the money down out of your own pocket or to put a lien on other property you own. Those are what we call the non investor bankers and low risk lenders. There are many lenders who just want their equity protected and are alright with the down payment coming from hard money or private lenders. they just dont honestly care. Of course they are not going to fund deals that do not cash flow and that can support the debt payments.” 

I asked Austin how I could learn more about this and he actually has a very easy program, it’s very short and to the point and explained the process and he even did all my home work for me in it with vendor contacts! You can check out his program as well at http://www.CREprogram.com/austin

Commercial Property is More Stable than Residential Property For Investment

The current economic climate in the UK has meant that residential house prices are in freefall, the same fate, however, has not befallen the Commercial Property market. Industrial real estate reacts much more slowly to negative conditions . That’s because commercial property investment is calculated, not emotional ; rarely are values over inflated.

Commercial Tenants Take Better Care of Property

If you have ever known anyone that has invested in the buy to let market you will probably have heard a few stories about “nightmare tenants” . A commercial property lease deals with businesses and professionals, rather than with people interested in partying at home .

On Average Commercial Property Guarantees a Greater Return on Investment

It costs more to obtain a commercial property as an investment, but the return is larger. This is due to longer lease terms. That means less vacancy times compared to a residential owner who might have vacancies every 12 months.

Commercial Property is Less Competitive
Competition is lower for commercial realestate because there aren’t as many buyers. You may think that’s a negative, but in this type of market the lettor makes the rules. Fewer people enter the market meaning there’s more opportunity for those who do get involved . Relatively few people invest in commercial property . Even so it was likely something small like a corner shop or pub .

Commercial Property Holds it’s True Value Better than Residential Property

According to recent statistic in the UK, commercial property holds its true value more readily than residential property . For people the rent is often the lowest priority, while for businesses it’s the highest – this comes into play during tough times.

Taking Part in Property Management Corporations

For those who don’t get maximum benefit from property investment clubs, they can always turn to property management corporations as another option. The advantage that you will have with such companies is that besides the usual property investing they are also into rental real estate investing . The rental property game offers great rewards…but some risks, as well. Both residential and commercial real estate are parts of rental investments.