Most people who do real estate, first tried their hands on purchasing homes as they are the most common types of properties that are sold in the market. It is something that most people are familiar with. Whether you are planning to go straight to far more complex aspects of real estate or are ready to advance to a far more profitable deal which is dabbling with commercial real estate, you need to know more about the trade first before joining the bandwagon.
Here are some of the essential tips that you need to know in order to make it big in the Long Island commercial real estate industry:
1.Always take your time
It is hard to market commercial properties. They are more challenging to dispose than single-family houses. Most of the time, you will find it hard to purchase these properties, as well as have them renovated and sold. This is not necessarily a bad thing. However, this can sometimes lead to bad decisions if you are way too impatient. If you are looking to earn quick cash, then commercial real estate is not for you.
2.Be prepared to spend some money the first time
Most people get discouraged when they don’t get their first deal sooner that they expected, especially if it took them twice the time they spent on selling houses. Selling houses is a lot easier. That is the reason why people who are just starting out with real estate buy and sell houses before jumping to commercial properties. Just like anything else, commercial real estate has a learning curve and things will come easy once you get used to the process.
3.Learn the new formulas
If you are used to buying and selling houses, you might have your own formula to effectively market your properties. The same can also be said when marketing commercial properties. However, it will require a different formula from what you were used to. Don’t be afraid to think and come up with a new formula with your commercial properties.
4.Always build relationships
There’s something far more important than buying the most lucrative commercial properties and that is to nurture a harmonious relationship with other investors and private lenders. For example, purchasing a commercial property worth millions of dollars is something that most of us cannot afford individually, leaving no choice but to partner with other investors to achieve the goal. Also, most properties are being sold without being listed, so the more people in your network who know these bits of info, the more deals you’d be able to find.
5.Always prepare your funds beforehand
Residential loans are cut out from a different tree with commercial loans. In commercial loans, down payments tend to be a lot higher than loans on houses. This means that you will need more money for down payment or you will need to look for a partner to come up with the down payment cost.
However, there is often no personal liability in case the deal goes bad, and they are more lenient about allowing you to borrow money from other people to keep up with the down payment. Before making any offers, you might as well ask around and know where you can find the best lenders. This can be handy in the future, especially if you find a property that is totally worth it but you just lack the proper funding to do so.
Here are also some of the things that you can do before you make any decisions:
•Know your tenants
If you are planning or about to purchase a commercial property, always make sure to familiarize yourself with the property. You also need to know if there are existing tenants in the property. You will need to assess if it is wise to let them lease out the space. You also need determine if allowing them to renew their leases can be financially rewarding to you. You also need to know whether they have a good relationship with the previous owner or whether they pay their rent on a timely manner. You can either keep their lease or terminate the contract. When it comes to tenants, you can be either the good or the bad guy.
•Learn how to make a profit out of your properties
Investing in commercial real estate is similar to investing in a business. You purchase commercial properties to make a profit. There are so many ways wherein you can make a profit with these properties. You can either have them rented, wait for the value to increase due to appreciation or you can have them renovated to increase their value and resell them for a much higher price.
•Know who’s going to be in-charge of the property
When owning several commercial properties, you will face a dilemma of choosing how to get all the properties managed. It’s either you manage all of your commercial properties on your own while relying on your own resources or you can outsource the responsibility to a commercial property management company.
If you are looking for a company which can manage your Long Island commercial real estate company, then you are in good hands with us. We are the top-notch commercial property management company that deals with Long Island commercial real estate properties. It is best that you have someone to monitor your properties so that you get the best out of your investments.
If you want to now more things about properties of long island commercial real estate then visit url.