| There are many "insider" commercial real | | | | zoning laws, land use restrictions, |
| estate secrets. One of the most | | | | utility easements, traffic patterns, |
| important secrets is knowing the right | | | | other planned development, the permit |
| questions to ask when investigating a | | | | process, and other issues. The answers |
| commercial property investment. While | | | | to these questions can have a profound |
| I'm not going to cover all of the | | | | impact on the purchase price of the land |
| potential questions in detail, I will | | | | and its final, developed value. Where |
| make you aware of some of the key | | | | do you go? Your city planning or |
| issues. I'm also going to suggest some | | | | building department is a great place to |
| places to go for assistance. | | | | start, as is the local utility company. |
| Investing in real estate is a complex | | | | Also check in with a title company or |
| process. Unfortunately, far too many | | | | active escrow company for contacts at |
| people jump into this complicated | | | | the city and knowledge in their |
| marketplace without the knowledge, | | | | specialties. |
| training, and tools needed to be | | | | These aforementioned factors are also |
| successful. It doesn't help that we | | | | important when it comes to buying |
| have hundreds of self-styled "gurus" | | | | existing commercial real estate, |
| selling the latest | | | | including retail, office, warehouse, and |
| no-money-down-get-rich-in-three-minutes | | | | mixed use properties. Knowing the |
| programs to confuse and demoralize the | | | | restrictions on building and use of |
| un-initiated when things don't work out | | | | property is essential to successful real |
| "as advertised." These first-time real | | | | estate investment, so investors need to |
| estate investors are often disappointed | | | | learn where, how, when, and of whom to |
| in the results they achieve and as a | | | | ask these questions. |
| result, often abandon real estate | | | | One of the next best places to turn to |
| investment entirely without realizing | | | | for the answers is a commercial real |
| just how lucrative it can be. | | | | estate agent, called a "broker," |
| Asking the right questions can greatly | | | | familiar with the area in which you have |
| increase your probability of success, as | | | | an interest. You can even ask the |
| can learning as much as possible about | | | | broker representing a specific property. |
| the world of commercial real estate. | | | | But, when asking your questions of a |
| This is not an overnight process. One | | | | broker representing a specific property |
| of the best place to start is to learn | | | | keep in mind that he or she is working |
| about your local commercial real estate | | | | for the seller of that property, not |
| market. In fact, being aware of the | | | | you. A local bank loan office or |
| status of your local market can | | | | independent mortgage broker are good |
| literally be half of the battle. | | | | sources to consult for alternative |
| For example, when purchasing land it's | | | | opinions. |
| important to understand that the price | | | | Investing in commercial real estate |
| of particular parcel varies according to | | | | isn't too different from investigating a |
| a number of factors. These can include | | | | crime scene. You need to ask tough |
| the relative abundance or scarcity of | | | | questions and find the evidence to back |
| similarly sized and located parcels, the | | | | up the statements. It can sometimes be |
| population's growth trends for the area, | | | | a tough process, but asking the right |
| and the proximity to good employers. | | | | questions will only increase your |
| Raw land buyers need to ask plenty of | | | | chances for a profitable transaction. |
| questions about such factors as local | | | | |