Commercial properties include industrial buildings, warehouses, shops, office buildings, retail stores, etc. In order to earn good returns by investing in commercial properties, it is important to dedicate time, research thoroughly and have an understanding of about commercial real estate market.
Listed below are some tips to become successful commercial real estate investors:
- Space Optimization: It is important to pay attention to space optimization. Consider a good design that allows you to design units with better layouts or add more units in a given space without making an individual unit feel crowded. This results in increased revenue.
- Extra Services: To boost revenue, try to make the property appealing to prospective clients. You can do this by offering extra services such as cleaning and trash removal, installing vending machines for snacks and drinks in the hallway, offering ample parking space etc.
- Strategic Increase Of Rent: Another way of maximizing returns is to increase rent. However, it is advisable to strategize the percentage of hike, timing and reason for increasing the rent. To deflect resistance, consider offering quality services to your tenants prior to raising the rent.
- Maintenance: To keep your commercial property relevant amongst competitors and changing market trends, you should be prompt at maintaining it. Tenants are more likely to stay in properties that are repaired regularly and well-maintained.
- Building A Network: Build relationships to create a network of trusted professionals including other investors, mortgage lenders, contractors, home inspectors, etc. You can consult and benefit from your network in case of any doubtful situation.
- Marketing: Successful commercial real estate investors know the value of aggressive social media marketing and online advertizing. Learn ways to utilize social media for getting in touch with potential clients e.g. create a channel on YouTube to showcase the best features of your commercial properties.
- Keep Learning: Learn about the latest marketing techniques for commercial properties and also educate yourself on the local area in which the property is situated. Get well-versed with the customer demographic, medical aid, transport options, etc. around your property to be at a better footing when striking a deal with clients.
- A Mentor: A mentor can offer valuable advice on mistakes to avoid for successful investments.
John Reider Properties assist its clients in making commercial property investments. The company also provides commercial property rental and property management services. For more details on commercial real estate investments, visit 455 E. Central Texas Expwy, Suite 101, Harker Heights, TX – 76548. You can also call at (254) 699 – 8300.
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.
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.