Commercial Real Estate Tips

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I am thinking about getting into real estate...I know there's more money in commercial but its harder to break into....any tips/ideas/suggestions?

Best Answer

Commercial real estate usually involves a depth of understanding of these properties as the sale of an ongoing business, a site for a potential business, a possible business investment property, etc. That means you need a good solid familiarity with the concept of EGIs, GIMs, GRMs, NOIs, capitalization, depreciation, economic life, market and investment values, sales comparison, vacancy and collection losses, zoning and permitting and licensing - etc. - depending on what kind of commercial properties you are going to be working with. This is all great stuff, and a wonderful challenge, if you have the expertise. If your background includes this kind of experience (as an accountant, lawyer, banker, property manager, county or state employee - whatever) use your old contacts as a launching point in your marketing plan. People who know you already, professionally, will have some amount of faith in your abilities and can send you business - if you ask them to keep you in mind. If this is all new to you, you will need to build credibility. Take classes that pertain to this field (business, real estate, accounting - whatever you can find) and join the local commercial real estate associations. Build up your resume and network, network, network - and have a solid marketing plan to put your face out there. Ideally, you will find a mentor to help you along the way - perhaps in your local commercial real estate association? If this is your dream and your passion, and you are willing to set logical goals and work hard, you can do it. Good luck and best wishes.

I'm looking to rent small unit (1000 sf or less) for wholesale specialty food production, but I don't know much about commercial property and leasing. Tips?

Best Answer

#1 - Make sure the property is zoned for the type of business you want to operate. #2 - The contract should spell out what your responsibilities are and what the building owner needs to take care of. #3 - Don't enter a long term contract. #4 - Have an attorney review everything before you commit.

General: what are some of the pros and cons about real estate, rentals in particular. And also I have heard commercial leasing/sales is the most lucrative. How are leasing commissions usually given in commercial loans, I know in residentials it?s usually a split of 1 months rent. Also what would you advise a newbie (I have had my re lisence for a year and a half but have not used it other than 1 summer very part time) looking to take a jump to self employment as steps to getting organized (health ins, taxes, learning sales and marketing techniques for my area, etc.) What 3-5 things would you recommend to a new agent that you wish someone told you. Boston Rental agents: pros and cons to rental market in and around boston, what a typical day is like, what tips for interacting and finding landlords. Any tips on marketing the luxury buildings? Also a general what books in real estate and sales had the best impact and information, but also kept it light enough to want to read.?

Best Answer

Real estate contact take time to establish. Get to know people in the business there and check it out. Don't jump cold turkey in there. Be very prepared. You sound very bright . Good luck and God bless!

I know you must take course and Ive tried searching online but my results are vague bc I dont exactly know what Im looking for. Does anyone have any info about the length of classes, approximate cost, level of difficulty, tips or anything? Any helpful sites? I live in maryland and by the way is commercial is different from a regular real estate license? Thank you! can I just study on my own then take the exam for commercial real estate? Is it a requirement I take classes?

Best Answer

Commercial is different than a regular real estate license. The cost of the test is around $600-$800. I didn't take any classes, juts read the books. It isn't difficult if you study and want to pass.

Has anyone does this before? How complicated is it? I would like to start out small and build a small shopping center (less than 10 stores) and see how that goes. What I would really like is to own several of the stores there as franchises. Say, rent half the space, then the other half I would put in my papa johns, subway, or jimmy johns etc. How difficult is it to deal with the city since I am a newbie? Is there some sort of person or company that I can pay who will handle all the legal stuff with the city, construction team, and architect? I would prefer to just get involved with what I know...the day to day operation of the businesses. Do I really need to get all involved in all the legal junk, planning with the architect, and hiring the construction people too? I'm just one person, so what are some tips that can put less work on me and make this go a whole lot smoother? thanks!

Best Answer

You need a lot of money and should probably have experience with a commercial real estate development firm. It will be hard to achieve financing without both.