Enter the complicated world of real estates


Commercial Real Estate: Asking The Right Questions

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



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