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Strategies For Successful Commercial Property Investment

Investments in commercial real estate provide a number of benefits to owners. By owning a commercial property, a business owner can save on the rental which otherwise he would be paying to run his business. Investors can benefit from rental income as well as capital gain on the property. People usually invest in commercial properties like industrial space, office space, retail space, multi-use properties, land and multi-family properties comprising of four or more units.

The main skill, however, is to know how to sift out the best properties from the rest and know what characterizes a great deal. Following are some strategies that may be useful while investing in a commercial property:

  • Think Like A Professional: To be a successful commercial property investor, you have to think like a professional. Know the difference in the valuation of commercial property and residential property. You should be aware of the direct correlation between commercial property and its usable square footage. When dealing with commercial property the cash flow is higher e.g. the income from multi-family dwellings is higher than that of a single-family home. Another important distinction is that commercial property lease is usually of a longer duration than lease on single-family residences.
  • Chalk Out A Plan Of Action: It is important to set parameters when investing in commercial property. This implies that you should be aware of how much you can afford to pay for the property and shop according to your budget. Tools like mortgage calculators are handy for coming up with nearly accurate estimates about how much you can spend.
  • Learn How To Identify The Right Deal: To identify the right deal; pay attention to damages in the property, assess the extent to which repairs are required, stick to your financial goals, assess risks, etc.
  • Get Familiar With Common Key Metrics: Be aware of the common key metrics used for assessing real estate. Examples of key metrics are net operating income, gross operating income, operating expenses, cap rate, net present value, capitalization of earnings, etc.
  • Look For A Good Seller: Look for a seller who is trustworthy. It is advisable to research about the property and its seller prior to signing the deal. You should hire a real estate agent to provide professional guidance while going through the deal.
  • Evaluate Properties: Before finalizing a commercial property, evaluate it thoroughly by studying its neighborhood, going through online listings of comparable property and so on.
  • Polish Your Communication Skills: Apart from the strategies mentioned above, your communication skills have a huge role to play in the kind of relationship you establish with realtors or sellers.

John Reider Properties helps its clients in making commercial property investments in Killeen, TX. The team utilizes its experience and knowledge for the benefit of clients. For more information about commercial property investments in Killeen, call at (254) 699 – 8300. You can also visit 455 E. Central Texas Expwy Suite 101 Harker Heights, TX – 76548.

How To Sell Your Commercial Property

Commercial properties include apartment buildings, convenience stores, shopping centers, office buildings, industrial buildings, hotels, motels and more. Selling a commercial property requires patience, skill and knowledge about legalities involved, market forces, demand, etc.

Following are some tips that will help you to sell your commercial property:

  • Property Valuation: It is the first step in the process of selling your property. The value of a commercial property is directly related to the income it generates and is calculated by dividing the net operating income by the area’s capitalization rate.
  • Curb Appeal: To increase the value of your commercial building, take some steps to beautify it on the outside. You can increase the curb appeal of the property by improving its landscaping, getting it power washed, applying a fresh coat of paint, replacing broken fixtures and more.
  • A Pricing Strategy: Develop a pricing strategy based on the price of other properties being sold in proximity of your property. Also, learn about the features and amenities offered in nearby properties.
  • Create A Marketing Packet: Sellers who create a marketing packet consisting of all the relevant information regarding the commercial property are more likely to find buyers faster. A marketing packet highlights the best attributes of your property and helps a buyer in making a well-informed decision.
  • Marketing Strategies: You should formulate your marketing strategy based on the buying behavior of your target clients. Nowadays, using social media for marketing a property has become a popular medium to reach a large number of potential buyers.
  • Contact Buyers: The best way to contact potential buyers is to build a contact list and reach out to them via email, cold calling, websites, blogging, and other modes of advertizing. Establish a relationship with the potential buyers for building their trust.
  • Educate Yourself: Gather knowledge about the buyer behavior, latest real estate marketing techniques & tips, current pricing trends, commercial property metrics and more.
  • Consult An Agent: Commercial real estate agents have in-depth knowledge about the market trends and the rules governing the sale of a commercial property.

John Reider Properties assists its clients in selling their commercial property and striking a great deal. The team has over 50 years of combined commercial sales and acquisition experience. They benefit from their knowledge about zoning, planning, city’s development plans and survey options to help their clients maximize their ROI and save their resources. To know more about selling your commercial property, call at (254) 699 – 8300. You can also visit John Reider Properties 455 E. Central Texas Expwy, Suite 101, Harker Heights, TX – 76548.

Tips For Commercial Real Estate Investment

Commercial property refers to a non-residential property that is used for conducting a business. It includes stores, industrial parks, malls, office buildings, etc.

Following are some tips for investing in commercial real estate:

  • Set Goals: The first tip for investing in commercial real estate is to set realistic goals. However, the goals should neither be too high nor too low.
  • Budgeting And An Investment Plan: Before investing, assess the status of your finances by maintaining financial records. This will help in keeping track of your income and expenses by giving you a fair idea of how much you can invest in the property. Also, it is important to layout potential investment costs on paper such as maintenance costs, legal fees and more when budgeting.
  • Focus On Your Niche: Consider venturing into one of the numerous property types such as office space, retail space, etc. when investing in multiple commercial properties. This will help you gain expertise with every purchase that you make.
  • Know The Market Trends: Staying in touch with the industry and latest market trends can help you invest in a good commercial property. Knowledge about market trends will give you an insight about the tenant demands, rent charged by similar properties, etc.
  • Location: Rent and capital appreciation are two most important factors that affect the income from commercial property. Both factors are highly dependent on location of the property. So, when looking for a commercial property, you should search in places where the vacancy is less to ensure maximum ROI.
  • Additional Features: Type of the property is equally important as its location. A property with distinctive features is more likely to attract good and reliable tenants as compared to other properties in the same location. Features like elevators, beautiful lobbies, picturesque views and the like attract more tenants and are also more liquid.
  • Flexibility: To make the most out of commercial property, one should be willing to become flexible as per the latest trends and requirements. You can provide add-on services and facilities to the tenants e.g. more parking space. This will add to the value of the property in the long run and keep it relevant.

John Reider Properties provides assistance in commercial property investment to its clients. The agents understand the real estate market and implement stringent tenant screening process to help the investors maximize their ROI. To know more about commercial property investment, you can visit 455 E. Central Texas Expwy. Suite 101, Harker Heights, TX-76548 or call at (254) 699-8300.

Reasons To Hire A Real Estate Agent

A real estate agent help his clients in buying or renting a property. Agents assist their clients in striking good property deals as they have years of experience and are up-to-date with the latest real estate trends & regulations.

Let us take a look at some reasons in favor of hiring a real estate agent:

  • Knowledge And Experience: As a real estate agent works thoroughly in the market, he gains extensive knowledge and experience in the field. Thus, he is capable of helping his clients in making well-informed decisions.
  • Connections In The Local Market: Well-established real estate agents build links in the local market which can be beneficial in saving both time & resources of their clients.
  • Assistance In Paperwork: Real estate agents help their clients in understanding the lease or contract terms. They are also capable of negotiating the terms to cater to the interests of their client. The agents make sure that the paperwork is completed without any mistakes and also that it conforms to the law.
  • Information About The Neighborhood: Local real estate agents have complete information about the neighborhood. They can provide their clients information regarding schools in the area, demographics, transportation facilities, amenities and much more. This knowledge is paramount in helping their clients find a property that suits their requirements.
  • Price Guidance: They thoroughly research the market for the price of comparable properties. This knowledge of real estate market trends helps their clients buy a property at a competitive price.
  • Save Time And Energy: Working with a real estate agent helps in weeding out properties that do not meet the client’s requirements. The agents understand client needs and shortlist suitable properties to save their time, energy and money.
  • Negotiation Skills And Confidentiality: Real-estate agents are skilled at negotiating the terms of a deal and representing their clients while maintaining high levels of confidentiality for clients.
  • Continuous Assistance: Another reason to hire a real estate agent is that they assist you with queries even after the paperwork has been signed. They can help you in understanding issues related to taxes, law, invoices and so on.

John Reider Properties is a well-known real estate firm in Harker Heights, TX. The agents help their clients in making investment decisions and provide thorough assistance throughout the process of finding and buying or renting a property. To know more about real estate agents in Harker Heights, you can visit 455 E. Central Texas Expwy. Suite 101, Harker Heights, TX-76548 or call at (254)699-8300.

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