3 Tips to Help You Find Commercial Real Estate for Sale
How do you source new opportunities in commercial real estate? What separates the great deals from the duds?
Sure, commercial real estate can be an incredible wealth-building tool, but you have to learn your markets well in order to reap the full benefits from these investments. The landscape for commercial real estate is broad, which means the more you extend yourself, the more complicated sourcing the right deals get.
The commercial real estate market is also subject to cyclical trends. It’s crucial to understand the local real estate market and how it adapts to various market conditions.
More importantly, commercial real estate investing is all about the numbers. The success of any venture is dependent on whether the numbers work. Make sure you understand the return on investment and weigh all the financial aspects before investing.
For real estate investors in the commercial space, it’s especially important to use a multi-pronged approach to find quality commercial investments.
1. Create an Extensive Brokerage Network
Not only will developing a brokerage network provide you with new deals, but it also provides an opportunity to learn what the insiders know. For one, you’ll learn to recognize value. Not all commercial properties in any search are created equal, and it takes a keen eye to discern the difference. Another important lesson every investor should learn early on is that while a property’s market value may seem acceptable, factors such as its net operating income could make it a bad investment opportunity.
In most cases, local agents who know the market well are the best place to source new deals. They’ll teach you how to evaluate investment properties so you can understand areas of risk, when to wholesale or buy and hold a deal.
2. Proactive Networking
At the end of the day, there’s no point going out to every networking event without a strategy in place. First, identify the criteria for your ideal investment and find events that match your criteria. There’s an old mantra in commercial real estate that goes, “you have to comb through 100 deals to find one that fits.” However, as wise as this mantra is, it’s just as crucial to understand what you’re looking for in the first place.
Still, on the subject of networking, look for motivated sellers if you really want to find an excellent commercial real estate deal. For instance, they may no longer be able to make payments on the property and are looking to sell fast and sell cheap.
3. Online Listing Platforms
Every large commercial real estate brokerage should have an online listing platform where they list every commercial property for sale. Simply select a property type, such as motel real estate, and you’ll be presented with a list of investment properties that match your criteria. There are plenty of ways to find off-market deals and taking advantage of the internet is one of them.
Keep in mind that some websites may have outdated information, so you have to learn the art of recognizing a good deal. Experienced real estate investors know a good deal when they see one. Be adaptable when searching for great deals, use the internet, and make use of classified ads and social media. Not only can you network with like-minded peers on social media, but you can also find potential sellers and individuals who know what properties are hot in the market.
The Bottom Line: Work with the Right Broker When Looking for Commercial Real Estate for Sale
The stakes are high when it comes to commercial real estate investing. The deals are more challenging to land, but then again, the profits are well worth the challenge.
Working with the right commercial real estate agent brings a wealth of experience to the table. They understand how the numbers run and can help you navigate a complicated closing process. It helps to have a sharp, landowner’s eye, which is what you get with Anthony Maccaroni.
Anthony has years of experience in the Pinellas County and Clearwater, Florida areas dealing with commercial property investing and sales. If you’re looking to buy or list commercial properties in Florida, contact Anthony Maccaroni today for a FREE CONSULTATION.