Learn to Recognize a Good CRE Deal
3 min.
Investing in commercial real estate is a, but distinguishing a good deal from a bad one requires a keen eye and strategic approach. Whether you’re a seasoned investor or a newcomer to the market, understanding the key indicators of a promising commercial property is essential.
Commercial real estate pros always have an exit strategy, they know the deals worth hanging on to and the ones worth walking away from. It helps to have the eye of a landowner – being on the lookout for damages and repairs. This doesn’t always mean that it’s a deal breaker, you just must weigh the potential repair costs, the property value, and your goals for the property to determine if it’s a worthwhile investment.
It’s important to do research in the areas you’re looking at commercial properties there may be special taxes or fees involved when purchasing properties in specific neighbourhoods. It’s also best practice to compare similar buildings in different communities to each other to find a common ground.
When searching online be sure to search using filters. It’s key to focus on properties with a total days-on-market count versus the market average, relisted properties, fallen sales, and expired listings. Some listings may appear multiple times by different brokers, this could be a hit that the owner is eager to sell, possibly accepting lower offers.
Finally, it’s perfectly okay to hire a knowledgeable commercial real estate agent. Real estate agents often have better market insight and can assist in pointing out potential deals that could have otherwise been missed. An experienced agent will be able to better negotiate and work with your budget.
Recognizing a good commercial real estate deal involves a combination of thorough research, strategic planning, and an understanding of the market dynamics. The key to success in finding a good commercial real estate deal is not just finding a property that meets your goals but also having the foresight to see its long-term value.
Reference
O’Connell, B. (2021, August 25). 7 steps to a hot commercial real estate deal. Investopedia. https://www.investopedia.com/articles/mortgages-real-estate/09/tips-commercial-real-estate.asp#:~:text=Learn%20to%20Recognize%20a%20Good%20Deal,-The%20top%20real&text=It%20helps%20to%20have%20a,property%20meets%20your%20financial%20goals
Cole, A. (2023, April 21). How to spot a good deal in the real estate market: Tips and Strategies. Zoocasa Blog. https://www.zoocasa.com/blog/tips-find-a-good-deal-in-the-real-estate-market/
Gupta, A. K. (2023, October 13). 4 steps to score a great commercial real estate deal. CRE Matrix Blog. https://www.crematrix.com/blog/4-steps-to-follow-to-score-a-great-commercial-real-estate-deal/
Staff, F. (2024, June 25). 10 tips for finding commercial real estate deals: FNRP. First National Realty Partners. https://fnrpusa.com/blog/how-to-find-commercial-real-estate-deals/
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