Laundromat Resource Forums Commercial Real Estate How do you find deals for commercial locations? Reply To: How do you find deals for commercial locations?

#3207
Tom Maricle
Participant

    loopnet.com is a good site to find available commercial real estate.

    I’m a numbers guy so what I would do is to calculate the cost of renting vs owning and see how far apart they are. Commercial real estate is at a higher rate than residential and in some areas of the US commercial properties are way over-priced and it’s better off renting.

    For example a place that rents for $2,000.00 a month is the equivalent of having about a $350k mortgage at 4.75% over 25 years. So if that property is worth 500k then it’s better to rent and if it’s less than 400k or so and you have the ability to buy it, then that’s probably an OK deal if you’re long term.

    If you aren’t long term, remember commercial real estate sells far slower than residential. You also face more risk as if the local economy changes you face both real estate and property value risks.