Educate yourself. The only way to know that you are getting the best deal is to learn about the commercial industry and loan process for yourself. Interview a few brokers and talk about the options they may offer for your specific property type. A good broker will educate you on the loan process and provide you with resources for additional information. If the broker is not interested in helping you to learn about the industry, then take that as a hint. Either they don’t want to make the time for you, the client, or they prefer to keep you in the dark about how they are doing (or not doing) their job.
Before you start a business, you should spend a lot of time doing some research. Study other similar businesses in your area to see how much money they earn. Compare your local area with other surrounding areas to determine the best place to offer your business services. Once you finish your research and from a business plan, start looking for grants. Your local library should have all the information you need to research government grants available to small businesses in your area.
For those exceptional individuals who have phenomenal sales skills, some extra cash to throw around and a keen business sense, there is commercial real estate sales. Selling commercial property can mean huge rewards. However, it takes years of preparation under a good mentor and a knack for that sales niche to make it to the big commissions and fabulous property listings. This is definitely not for the newbie.
Get acquainted with a competent real estate agent that does a lot of business in the neighborhood you’re investigating. Have him or her search the local Multiple Listing Service database and pull up “active listings, pending sales, and sold comps” for the area. If you plan to flip you want an active market – one, it makes it easier to estimate a final retail value for the properties you’re considering buying and two it shows that there are active buyers in the market now. Even if you plan to rent you still want to own in a location that is in demand.
You will soon be on your way to small business success with free grant money to fund your dreams. Don’t give up. Keep filling out applications until you get the money you need to turn your business dreams into a reality.
Whichever route you choose to go, make sure that you avoid overpaying for your property. With the recent housing crash you can get great property investments right now. You can get them at ridiculously low prices compared to what you could two years ago. In many cases this price is half off or even more. You might want to consult a professional real estate business here. What is key is to make sure that the rent you are being paid covers your expenses. Your expenses included repairs, maintenance, any loans, taxes, and insurance. You also have to keep in mind that 5-10% of the time you may have vacant units. This is something you need to factor in.
Rentals are a haphazard way of making money as an Agent. You have to rent a large number of apartments, houses and condominiums to make a decent buck. Even after you do start to see leases signed, the properties that pay your Broker tend to hold back the commission for extended periods of time just in case the tenants bug out of their lease. Most Brokers add two to six weeks on to that hold before they release your money. Whether any of this is legal or not doesn’t seem to matter. It’s just the way things are done. When rental agents finally do get paid, it always seems to be less then expected. That’s because your beloved Broker probably forgot to explain the extra fees charged for office space, phone use, website and email sharing, lead generation and advertising.