Advice On Flipping A Piece Of Commercial Land

October 20, 2010, 6:17 am

United States real estate for the commercial sector has seen better years. The slump is favorable for investors, who can now find commercial properties at prices that are a fraction of what they were a decade ago. Making a profit still involves careful research, marketing sampling, and proper renovation.

Flipping commercial real estate demands that you have done market research. Contact business owners in the area and ask them what they are paying on their lease, if they are happy, and whether or not they’d be interested in a specific location. Sometimes you might even be able to make a sale before you purchase the property! Don’t give up if business owners don’t want to share- some will eventually.

Commercial designs that also include apartments or living areas have been the best selling over the years. This allows business owners to live directly near the business, save money on home living, and allows them to further their dreams of owning a successful business. Residential zoning mixed with commercial zoning isn’t as popular, and many commercial properties don’t include properties.

Talk the real estate owner down as much as you can, and don’t feel shame in doing so. The market is tough, and you both should be aware that making a profit from the sale is going to mean tough work. Offer to give a price at least 10% less than what they are asking as a start for bargaining. Also note any damages to the property to add to the deduction, or try to write off any handling fees in the purchase.

The owner of the commercial property has probably tried to lease the property. Ask if he or she has, and why that project failed. If information is divulged you can get valuable advice on how to fix the property or find a reason to talk the price point down. If no attempt has been made to lease the property, you should instead put efforts into finding out what the current probability of finding a tenant is.

If you intend on selling the land right after buying it, you have an even harder task to complete. Selling at a higher price requires that you improve on the property, or at least keep it until interest increases. The problem with waiting is that you will have to make payments on the property in the meantime, and with no particular boon in the real estate industry in sight, you could be losing money on the situation.

Final Thoughts

Look into commercial real estate brokers who can help you find real estate in your area. Brokers will find the best deals, help you bargain, and will only charge a minimal fee in order to get you the best information in regards to commercial property.

Successful Businessman