The Pros And Cons Of Commercial Real Estate
Always remain calm and patient when dealing with the commercial real estate market. Don’t enter into a commercial venture hastily. If the property doesn’t suit you in the end, you may regret your hastiness. It could take you twelve months or longer to get the deal that fits you perfectly.
The location of the property is the most important factor to consider when investing in commercial real estate. Take the neighborhood of the property into consideration. You also want to look for a neighborhood that is solid and growing. Since you will likely still own the …show more content…
Be sure to take the initial proposal responses, but do not proceed without making the property owners aware of what is going on. Do not fear letting the owners know that you are interested in other properties. The information may help you to negotiate more favorable terms on your deal.
When hiring a real estate agent, read the disclosures completely before signing a contract with a realtor. Look for any disclosures regarding dual agency. When dual agency exists, the agency advocates for both parties in the transaction. In other words, the agent is representing both you and your landlord in the same transaction. Dual agency is something that should always get disclosure, and both parties involved should be in agreement with it.
Before you invest in real estate, be certain that you understand the implications regarding your taxes. As with home mortgages, the interest paid on commercial real estate loans is tax-deductible, as is depreciation. There is also “phantom income”, which is taxed by the government although not received by the investor as cash. Before investing, become more familiar with this sort of