Basic information about commercial real estate
Most people think that is they were to make money in real estate; it has to be residential real estate business. Even TV ads do not show anything about commercial real estate. You will rarely hear any mention of buying commercial buildings to rent to tenants. Actually there is a misconception that commercial real estate properties are too expensive to even think of investing in them You must have seen situations where small businesses build their premises leaving a small space to rent out or to use during their time of expanding the business. It is true that large commercial building may require a large sum of money, but when you buy a small retail strip or a small office it is almost the same price with a small apartment compound.
Some other people believe that managing commercial real estate property takes time and it is also tiring. The real truth is that commercial real estate tenants require little management as compared to residential property tenants. You could find a tenant of commercial real estate who is willing to pay all the required insurance and taxes plus rent in triple gateway. As much as the landlord will still need to check the general condition of the commercial building, when you are not making all these payments personally, it becomes effortless to manage them.
some people will argue that it is quite risky dealing with commercial real estate property. You will meet some individuals who think that because commercial properties are too dangerous, there is no need investing in them. What many people think is that with the commercial real estate tenants, you are not sure you will meet them tomorrow. On the other hand, if the property is located in a prime area when one business closes, it opens the door to another one that was in waiting. It is also a belief in many people that there are no great deals in commercial real estate. You may find a business that is being sold because the company that was using it has gone into receivership and the building needs to be sold out quickly.
You need to know that carrying out a search for a commercial building is almost the same as doing the same for an apartment building. There are similar devices that are used to determine the market price for a commercial building as there are for residential buildings. Do not imagine that commercial buildings will only be sold when they are in terrible shape, and they need to be repaired. In fact you will meet commercial houses on sale at times when the owner of the business has become bankrupt, and the building needs to be sold ASAP. There is, therefore, all reasons that should make you want to invest in commercial real estate.