Navigating The Waters Of Commercial Property

The areas of real estate that tend to dominate the news lately are always residential properties, and for news ratings, that makes sense since everyone dreams of owning their own home. However, commercial property is a big money sector in its own right and one you should look at. Keep in mind that there are differences between buying and selling residential versus commercial properties, so a different school of thought is needed too.Online entrepreneurs know the secret to their success is finding a niche and then taking it over. This is impossible to do in residential homes, as houses are everywhere. You can possibly pull it off in commercial real estate though. Think about gas stations for instance; they are almost always on the corners of intersections. If you focus your property hunting on just intersection corners, you can start being the person who calls the shots when it comes to gas stations in your community.Know the lingo. Granted, a lot of the terminology used in residential real estate will be the same in commercial real estate. However, some words might have new meanings, and there is some vocabulary in the commercial arena that would have a residential Realtor looking confused.Finding buyers, sellers, inspectors and agents within the residential real estate sector only requires a basic Internet search and a phone book. The commercial community is not going to be so formally structured, as there is not a regular and repeat business of buying going on. Find one or two individuals within your local commercial community scene and network the old fashioned way, starting with them. Your personal connections can prove a real secret to success, as you can find out about properties before they are public knowledge.Think outside the box. It can be tempting to look at commercial properties that have multiple units that should mean profit streams coming in, but then why is such a hot property for sale? Take time to look at vacant properties. Many vacant locations are that way because the tenant business failed or something local made the property a no longer ideal location. Vacant properties are empty spaces that tend to come cheap and are just waiting for the right creative individual.For existing properties that you look at that are retail locations or office parks, try and only consider ones that have ten or more available units for renting out. The more rent streams you can have coming in from one property, the better. Not only is it far more financially stable overall, but your profit margins go up with every additional lease you are able to farm out of the property.Residential properties are and have been a roller coaster over the last decade. Commercial property is an area that you can join other savvy investors in for both calmer waters and diversification within the overall real estate sector. Keep in mind the ideas presented within this article and have fun taking a look around town! You may find that right deal to invest your money in.

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