Commercial Property

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Best Answer

What about commercial property? You made a statement, did not ask a question. Ask the question. Loopnet will not answer your question. It has some commercial properties listed, but no uniform information and much is out of date. Your best bet is to consult with a commercial agent, NOT a residential who thinks they can do commercial. That is a train wreck waiting for a car crossing to happen. A broker who does commercial will best guide you with investing in commercial properties. They will advise you and locate properties that meet your investment criteria. A good commercial broker will make you money. They are connected to the commercial market place. Unlike residential where you go to the MLS to look up houses, commercial is more of a networked community. It is truly broker driven. Commercial brokers have means to get the deal financed. For most deals you will need a 15% to 25% down payment. Some lenders may feel really good about the deal an d let you in for less down. But your commercial broker is a must-have guide thru the process. I've seen it first hand, and became a commercial broker myself. I also am a small investor. So, what do you seek regarding commercial?

IF MY TENANTS MOVE OUT OF MY PROPERTY,AND THE COMMERCIAL PROPERTY GOES DARK..HOW WILL THIS EFFEC T MY PROPERTY TAXES..WILL THEY GO UP..SO I CANNOT PAY. TAXES THEN THE STATE TAKES MY PROPERTY?? is this how the governent steals property from the public??I BET MY TAXES WOULD GO UP SO I COULD not PAY..DOES ANYONE KNOW IF THE PROPERTY TAXES WOULD GO UP ON A VACANT COMMERCIAL PROPERTY?

Best Answer

No, taxes aren't based on the tenants, they are based on the assessed/taxable value. So regardless if you have tenants or not, they would only adjust based on the adjusted value of the property as the assessor of the municipality the property falls in does re-assess every single property in the municipality every year. It matters on the type of property. Also, it's not vacant land if there is a building on it.

Hi, I need some help I am looking to buy commercial property which is already let out long lease what i need to know is there any type of insurance that covers you against the loss of rent and if the tenant does not pay rent if some one please give as much info as possible. Thanks

Best Answer

There is some coverage for businesses that are subjected to unforeseen events which cause their business to be closed or something happens where their customers cannot get to the business to buy goods. This business interruption insurance helps cover the shortfall in earnings. However, I don't think you'll find many commercial policies willing to pay for failure to pay rent. You just need to make sure you carefully check the prior lease/rental history of your potential tenant. There are many services that offer reports on the credit history of businesses.

I am interested in purchasing commercial property in a specific neighborhood in Dallas. How do I go about finding out which areas are zoned for commercial development and what kind of commercial development is permitted? (For instance - restaurant/bars). I have been warned about expressing interest in a specific location too early as it creates "buzz" which can lead increased cost and even losing the deal. Also, is there a database for ranking commercial Realtors? (For instance, you can look up the history of lawyers and see their rank and past indiscretions.)

Best Answer

The city of Dallas will have a property map showing the zoning for all properties in the city. You can give them a particular address and they will give you the zoning guidelines for that property. The National Association of REALTORS (NAR) has a website with all the REALTORS and if they have been the subject of any indiscretions. They won't have any public listing of income ranking etc. because that is against privacy laws.

Is it better to use an interest only loan or a conventional loan when buying land? This will be for the sole purpose as an investment and I hope to hold only 2-5yrs. Property is zoned commercial

Best Answer

i would go with a conventional loan only because you don`t know what the market will be like in 2-5 years