Price
11000000+ USD
Lot Size
0100+ acres
Home Size
010000+ ft2
International Properties
Unique Development Opportunity in Butler Bay, St. Croix, United States Virgin Islands!

Do you believe that dreams come true? That there is paradise on the Earth? That there is a place where you can escape from cities and just enjoy nature how it i...

Top Stories

Live Your Dream: Start Your Own Business With Perfect Package! 260 Arizona Lots Ready for Land Wholesaling Opportunity! Buy & Flip with LandCentury.com Network!

Western Paradise location offers up to 500% profit potential The easiest way to start your land flipping business We give you the platform, you earn the rewards.

International Properties

Unique Development Opportunity in Butler Bay, St. Croix, United States Virgin Islands!

Do you believe that dreams come true? That there is paradise on the Earth? That there is a place where you can escape from cities and just enjoy nature how it is?.

Get instant customized notifications for the properties you’re looking for.
Alertik iOS Alertik Android

Investing In Commercial and Industrial Properties and Land

Articles

Published on Friday, October 30, 2015 by Land Century

Are you considering investing in a commercial or industrial property? Buy commercial and industrial real estate or land is far more complex than buying residential property. There’s a lot to consider, including the property’s net operating income, cap rate, and cash on cash metric.

Finding the right property doesn’t have to be an impossible feat. Here are some tips to help you along the way.

Search in Commercial Hotspots

Commercial properties in high-growth areas will offer the biggest return. While there are commercial hotspots all over the country, some of the most promising cities are Austin, Houston, San Francisco, Denver, and Dallas.

The energy industry is booming in Houston, and Austin has a strong industrial base. Denver has strong technology and energy sectors, while San Francisco is a top pick for hotel investments. The Dallas-Fort Worth area has high job growth, a diverse economy and a low cost-of-living.

Of course, you don’t have to search in the city specifically for your commercial or industrial property. But it’s best look in areas that are experiencing high growth. Be sure to perform a thorough evaluation of the neighborhood where the commercial or industrial property is located. Research the area, talk with the locals, visit the property during multiple times in the day to get an idea of the property’s potential.

Make Sure That You Have All the Right Information

There are a few basic pieces of information that you need to have when searching for property:

* Property type (multi-family, industrial, office, etc.)
* Location
* Price range

When you find a property that you’re interested in, you want to gather as much information as possible about it.

This includes:

* Taxes
* Price
* Who owns the property
* When the property was purchased by the previous owner
* How much they paid for the property
* Information related to the deed and title
* Who owns the mortgage
* Parcel information
* Any relevant building information

The more information you can gather about a property, the better. This data will help you determine whether or not the property is a good investment. For example, if the property has a building on it that was newly constructed, you can be fairly certain that the structure won’t need major repairs or renovations anytime in the near future. This will keep your maintenance costs low, and help you see a higher return.

If you’re simply buying vacant land for commercial or industrial purposes, it’s important to understand who the current owner of the property is and how much they paid for the land. If they’re selling the land for a much higher price than they purchased it for, this may be a sign that demand is growing in the area and could signal a good investment opportunity.

Look for Sellers That Are Highly Motivated

While they’re not always easy to find, motivated sellers are often eager to sell their property below market value. You wind up with a great deal, to get the property off their hands. Motivated sellers are the key to landing a great deal on commercial or industrial properties. Why? Because only a motivated seller will be willing to negotiate on the price. Sellers who aren’t interested in a quick sale will be harder to cut a deal with, and may not be worth your time.

Use a Variety of Sources to Search for Properties

When searching for properties, don’t just stick to one resource. Be adaptable. Use online property portals, and check the classified ads in local newspapers. Work with a real estate bird-dog to help you find a valuable investment lead. These individuals will provide expertise in exchange for a referral fee.

Know the Local Market

It’s crucial to have a very clear understanding of the local market before making an offer on a commercial or industrial property. Is there a high demand for the type of space you plan on developing (be it retail, office, warehouse, and/or industrial)?

Remember, vacant land is typically vacant for a reason. This doesn’t mean that the can land is a bad investment, but it’s important to truly understand local demand before committing purchasing and developing the property.

Evaluate the Property

When deciding whether to invest in a commercial or industrial property, it’s important to thoroughly evaluate the property beforehand.

This means looking at the property’s:

* Cash on cash return
* Capitalization rate
* Debt coverage ratio
* Depreciation
* After-tax IRR, etc.

The capitalization rate of the property is one of the most important factors because this ratio estimates the property's income-producing value. Cap rates will vary depending on the city's location, demand, crime levels, and other factors will affect the property’s ability to produce income.

Perform Your Due Diligence

Once you’ve found a property that you’re interested in and are ready to make an offer, you’ll need to ensure that you perform your due diligence.

This includes:

Zoning: Check the surrounding area to make sure that it’s not zoned differently.

Utilities: Check to make sure that the property includes all necessary utilities. Properties in rural areas may not have easy access to electricity, water, or sewer.

Easements: Who will have access to the property? Location of any easements on the property will affect where you can build your commercial structure.

Environmental Hazards: Have a Phase I Environmental Site Assessment performed, which will include a site investigation, a review of the properties uses, and a review of the public records of the property.

Survey: Hire an experienced survey company to locate all the property lines. A complete survey will show any easements and encroachments on the property.

Title Check: Make sure that you work with a reputable title company. The company will perform research to ensure that the property has no liens and that the seller has the right to sell the property.

Investing in commercial and industrial property can be a complex endeavor. For this reason, it’s best to work with a qualified and experienced real estate adviser who has experience with commercial property, and to find a reputable real estate lawyer to assist with the transaction.
Share this Article
New Construction Project for 56 Unit Townhomes in Titusville, Florida

EXECUTIVE SUMMARY 5.54 ACRES / R-3 ZONEDLocated on 5.54 acres in the heart of The Beautiful Overlooking the Indian River City of Titusville, Florida. 4.178 acres zoned R-3 (Residen...

Featured Listings

10 Acres
Sierra Blanca, TX
79.95 Acres
Eureka, NV
5.54 Acres
Titusville, FL
0.23 Acres
Dunnellon, FL
1 Acre
Willcox, AZ
0.3 Acres
Shelter Cove, CA
1.68 Acres
Sanders, AZ
0.23 Acres
Coldspring, TX
5 Acres
Blanca, CO
0.23 Acres
Port Charlotte, FL
108 Acres
Eagle Lake, ME
0.16 Acres
Ridgecrest, CA
Waterfront Liquidation - Own Waterfront Lot Today! Tennessee's most popular camping place!

ENJOY WATERFRONT PROPERTY FROM ONLY $12,800Camping is one of the most America activities you can do. One of the most beautiful places we visited is located minutes away from Tennes...

Live Your Dream: Start Your Own Business With Perfect Package! 260 Arizona Lots Ready for Land Wholesaling Opportunity! Buy & Flip with LandCentury.com Network!

Western Paradise location offers up to 500% profit potential The easiest way to start your land flipping businessWe give you the platform, you earn the rewardsLandCentury, one of A...

Featured Profiles

Verified Wholesaler

Harris Investments, LLC

Verified Wholesaler

GreenBridge Holdings, LLC

Verified Wholesaler

Land Century, LLC

Verified Wholesaler

BuildFortune, LLC

108 ACRES OF LAND NEAR EAGLE LAKE, MAINE IS READY FOR YOU!

We have an exciting opportunity to own land near Eagle Lake, Maine. 108 acres parcel of beautiful, untouched stretch of natural forest is located in New Canada, Maine near Eagle La...

Great development opportunity in The Enclave at The Palms, Northern Belize!

The Enclave at The Palms is a residential subdivision located in the Corozal Province in Northern Belize. This part of the country is very popular with expats, and The Enclave is l...

Be Smart, Live Well in North Port, Florida! Great opportunity!

North Port, Florida, is the place you have been waiting for. One of biggest city in Sarasota County, North Port still feels more like a small town and people hope to keep it that w...

120 acres for sale in beautiful Sierra Blanca, TX

Have you ever imagine yourself in the role of Texas cowboy in popular western movie? Where is just you, desert and wild nature? Or you were dreaming of build your own big rancho wi...

Unique Development Opportunity in Butler Bay, St. Croix, United States Virgin Islands!

Do you believe that dreams come true? That there is paradise on the Earth? That there is a place where you can escape from cities and just enjoy nature how it is?One of this places...

Unrestricted Land - What Does It Really Mean?

Unrestricted land usually means that the land doesn't come with the same restrictions homeowner's associations impose, like home size, color or style. You may be able to place a mo...

Featured Listings

10 Acres
Sierra Blanca, TX
79.95 Acres
Eureka, NV
5.54 Acres
Titusville, FL
0.23 Acres
Dunnellon, FL
1 Acre
Willcox, AZ
0.3 Acres
Shelter Cove, CA
1.68 Acres
Sanders, AZ
0.23 Acres
Coldspring, TX
5 Acres
Blanca, CO
0.23 Acres
Port Charlotte, FL
108 Acres
Eagle Lake, ME
0.16 Acres
Ridgecrest, CA
What are Tiny Houses and Are They Worth It?

Tiny houses are taking the world by storm. A lot of people are selling their larger homes and building or purchasing a tiny home. And they’re saving a lot of money in the process...

How Much Does It Cost to Build a House Yourself?

Imagine being able to build your dream home with your own two hands. As romantic as it sounds, building a home takes a great deal of time, work, dedication and skill. But if you ha...

Featured Profiles

Verified Wholesaler

Harris Investments, LLC

Verified Wholesaler

GreenBridge Holdings, LLC

Verified Wholesaler

Land Century, LLC

Verified Wholesaler

BuildFortune, LLC

What are Real Estate Investment Trusts and How Do They Work?

When it comes to real estate investments, you'll see a lot of people talking about REITs, or real estate investment trusts. Some people call them "real estate investment stock."The...

Business Ideas for Vacant Land - How to Create Income Producing Assets

Vacant land can become an income producing asset. Land is valuable, and while land may be most valuable when a structure is built on it, this doesn't mean it can start producing in...

How Blockchain Could Change the Real Estate Industry

You've heard of cryptocurrencies – unless you've been living under a rock – but you're not sure how they work. Bitcoin, the world's largest cryptocurrency, is run on what's cal...

What Does the Right of Refusal Mean in Real Estate?

The first right of refusal in real estate is a provision an agreement or lease that gives a potentially interested party the right to buy the property before the seller negotiates...

Avoid Being Scammed on Craigslist and eBay When Buying Property

Just about anything you can imagine can be bought and sold on eBay and Craigslist, from old toasters to vintage record collections, and yes, even property. While these sites have c...