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