Being an investor is a career path that comes with a lot more risk and trial and error than most conventional alternatives. There’s room for a lot of growth at any stage of the business, however there is plenty of expert advice and help that you can avail, including consultants and commercial real estate broker such as those at our agency.
If you’re looking for great deals and property listings for commercial property in Warren or the greater Macomb County area, we can help you spot a great deal. We’ll know when we see it, but here are a few tips to help you make a decision and keep your eye out:
1) Recognize Value
Like everything else in life, it’s important to recognize the value of something when you see it. No two properties are equal or the same, hence no two have the exact same value for the exact same reasons.
Look at factors such as the capitalization rates, net operating income and how much of your returns will be profits and how much will be used to pay off bank loans and other costs. A cheap deal isn’t always the only indicator especially if you’re going to be spending on overheads and maintenance all the time. It all adds up.
2) Be prepared and time yourself
Know what a good time to make an offer is. If you’re sure about investing in commercial real estate, get your loan approval from the bank or have your finances sorted so you’re able to make an offer the moment it comes along.
It’s difficult to find offers that fit your requirements and needs, so the moment one comes along, jump the gun. Stay in touch with your agent or broker and find the best buy for yourself. Alternatively, seek out property that’s been on the market for a while; those owners will be willing to sell them for cheaper just to get rid of them.
3) Look for motivated sellers
Since we’re talking about sellers, learn to identify eager sellers. They have greater motivation to sell their property at cheaper rates because they’re looking to get it off their hands.
Their reasons for wanting to sell could vary greatly—from not wanting to hold onto a dead-end or being unable to fund their own projects; either way, it’s good news for you because you can scout them out.
Look for absentee owners and vacant, underdeveloped properties, and those whose owners are no longer able to make payments.
There’s a lot more when it comes to the tricks of the trade; you just need a reliable agent to help you make the final deal, whether you’re looking for a single unit property or larger commercial real estate in Macomb, be it Shelby Heights or Warren.