Land O Lakes Real Estate News - JLS Investment Realty

Partners You Need for a Successful Commercial Real Estate Deal
February 2nd, 2011 2:14 PM

Partners You Need for a Successful Commercial Real Estate Deal

When approaching the world of commercial real estate, it is important that you remember that you are not alone! This world contains a great number of partners and allies essential to finding, formulating, and closing a great deal.

Commercial Real Estate Broker
These brokers are in the business of selling property. They do it for a living, and commonly have a great deal of experience and contacts across the commercial real estate world. This positions a broker to be a core ally in finding the right property for you. Not only do they know of several deals, but also they probably have many clients just like you and can help you better understand your needs as an investor.

Mortgage Brokers
A mortgage broker is your partner in finding financing for your real estate deal. There are several different ways to acquire the capital necessary to purchase a commercial property. A good mortgage broker can help you navigate this world and find the right loan for your financial needs. Additionally, many commercial mortgage brokers are very experienced in analyzing deals and may be able to help you validate deals before going in front of a loan officer.

In order to ensure that your rights are protected and that there are no legal surprises after the sale, retaining an attorney specializing in commercial real estate is a must. At the very least, you will need a title attorney to conduct a title inspection and draft the terms of your closing agreements. Additionally, a good commercial real estate attorney can help evaluate land use issues. Should a deal turn sour, a ligation specialist to advocate for your rights and ensure that you are protected is well worth it.

Insurance Agent
A commercial real estate insurance agent will help you insure many aspects of your investment against unforeseen circumstances. Commonly, you will want to insure your property against such events as fire or tenant damage. However, there are a variety of coverage options that your commercial insurance agent can offer, ranging from title fraud to lost income due to zoning changes.

Property Managers
Often, it is not the best use of your time to personally manage the day-to-day operations of your commercial property. A commercial property manager (or commercial property management company) will help maintain the basic operation of your property by collecting rent and performing maintenance. Additionally, a good property manager can help improve tenant relations and even help you increase occupancy with a well-staffed lease office. However, a bad manager can steal from you, alienate your residents, and even damage your property.

From time to time, you will need to make some capital investments to your commercial real estate. Most often, this will take the form of large repairs (roofing/parking lots/heating systems), which simply break down over time. Also, if you seek to increase the value or reposition your property, you will need to refurbish or even add on to the original structure. A good commercial property contractor can help you find and coordinate the wide range of construction workers and tradesmen needed to complete large scale development projects.

Escrow Agent
The commercial escrow agent is a neutral third party who simply holds the money in a commercial real estate transaction until the final agreement is signed and the property closes. The escrow agent is ideally a party who can be trusted to follow the escrow agreement to the letter with impartiality.

During the inspection period, you will hire a wide variety of specialists to evaluate your potential commercial investment. These inspectors range from those who check on the structural integrity of a building to the environmental conditions of the land upon which it rests.

Maintenance Specialists
Many properties rely on systems to be in top form to continue operation. One common example is the HVAC specialist who is certified to maintain and repair heating or air conditioning units on your property.

It is important to think of each of these vendors as long-term partners in your commercial real estate investment career. Especially if you are investing in the same local market, you will be able to work with proven vendors time and again. As you build these relationships, each member of the commercial real estate "ecosystem" can become your ally by providing advice, trending information, and possibly helping you source deals through their other clients.


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Posted by Jennifer Stepanek on February 2nd, 2011 2:14 PMPost a Comment

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