Before getting into commercial real estate, it is important that you know what you are doing. Regardless of how skilled you think you are, it is possible that you lack knowledge in a certain aspect of the field. The following paragraphs are filled with insights about commercial real estate that will open your eyes.
When purchasing property, look at the amount of units available. The higher the number of units you have in a property, the more streams of financial income you have from the property. A lot of people who buy property do not even consider it unless it has at least ten units, the more units the more money.
Keep letters of intent simple by tackling large issues before sweating the small stuff. This lets you get the bigger issues out of the way first and makes small issues simpler to complete.
Square Footage
Clarify how much space is available in square footage. Properties are measured in term of usable square feet or the total square footage which includes uninhabitable space. It is a good idea to know measurements for each type of square footage. This will allow you to make decisions and speed up the process.
This is necessary to enable you to confirm that the terms fit with the rent roll, as well as the pro forma. If you don’t review the key terms, you may discover terms which were not contemplated for the rent roll. This could quite possibly result in a change to the pro forma.
It is not possible to know all there is to know in regards to commercial real estate. Remember that you can always learn new things. You will get better if you look for more resources and apply what you learn. Put what you’ve learned to use, and make some money.
