How do you find deals for commercial locations?

[Katrina]

Hi!

I’m familiar with the process of finding distressed residential real estate, however I’m not familiar with commercial real estate at all. What are some good books to read on finding deals in commercial locations? To purchase in my area, commercial real estate seems unattainable for my budget. I’d prefer to own for the long term benefits if possible. Does anyone have recommendations on where to start?

Thank you! 🙂

[Jordan Berry]

Hi Katrina!
Great question! I think the best place to start would be at BiggerPockets.com. They have a BUNCH of free information on investing in commercial real estate that will get you started in the right direction. Before you go hunting for books on buying commercial real estate, browse their site.

If you want to start looking to see what commercial real estate is out there and what prices look like, a site like LoopNet would be a good place to look. It can also be a great place to get hard numbers so that you can practice analyzing deals so when you’re ready to start looking seriously, you’ll have had some practice.

One final suggestion is to reach out to a few commercial brokers and just let them know that you’re new but you’re interested in commercial real estate investing. They might be able to talk you through some basic information and might have some information to give you.

Hope that helps!

[Tom Maricle]

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.

[Alison Finn]

You can take the proposal to the real estate company, and they can find you the best buyer or buy it themselves to sell it in the future. Gohalfpercent is a full-service real estate investment that supports you throughout the process of home selling and buying

[Sewastian Agzedo]

What is your budget for the purchase?

[Nathan Devon]

It is pretty simple to search for commercial housing since many resources publish ads or information. It is much more difficult to check these premises for compliance with all standards and check all documents. Due to the difficulties, I advise contacting a real estate agency that will notify you. You can take out a loan if you do not have enough funds. I have been working with mcgeewm.com to form capital for investment or home purchases. You can also use their services and create a financial strategy.

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