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