A Random Buying Commercial Properties Tip
Before you decide to start buying commercial real-estate, it is advisable to possess a grasp of real estate terminology as applied to commercial property. The information below provides you with some terms which are used and some have a brief explanation with respect to being successful.
Class - This usually applies to office property and gives the buyer and indication of what he may expect before he actually visits the property. For example, Class A commercial real estate will be of modern build, less than 30 years old, probably five floors or more in a central location close to all amenities and transport links. This is the sort of property that many organisations are prepared to rent at good rates so an ideal choice for the professional purchasing commercial real estate real-estate investor.
Pre-Let Property - As the name implies, they are properties sold with the existing tenant, usually blue chip, with an assurance of a long lease with regular rent reviews inbuilt. These properties mean you can start getting a return on your investment from Day 1 rather than having to locate tenants once purchased.
Vacant Property - By buying empty property, you may maximise the rental income rather than be in a previous lease, though the down side is that you need to discover the tenant once the property has been bought. Prospective tenants can be shown the property through the purchase process and even sign a letter of intent to rent, but you should not sign them to a lease until you own the property.
The third type of property you could purchase can best be summed up as REFURBISHMENT PROPERTY where you buy a property and then do either major or minor works on the property to meet the needs of your prospective tenants. One example could be a big retail space that you then break up into smaller units and rent out to smaller specialised fashion or antique businesses.
Real-estate Appraisers - These are essential people whenever you are buying a property since they will set the valuation for the sale and so for your mortgage. Wherever possible, you should try and meet them on the site in order that you may point out the bad things, in the event that you are buying, or all of the good points, in the event you are selling.
As you may anticipate, you'll find hundreds of terms used both in residential and commercial real-estate investment and you will come across lots of new ones as your property investment profession continues. I have tried to give a few here which may help and I hope the information is useful.
