Lease or Buy? Your Business Property Decision In Adelaide Lease or Buy- Your Business Property Decision In A | Page 12

not keep all of the NOI because he or she must use some of it to make
mortgage payments. To uncover cash on cash, real estate investors must
determine the amount required to invest to purchase the property or
their initial investment.
 Look for Motivated Sellers
Like any business, customers drive real estate. Your job is to find them –
specifically those who are ready and eager to sell below market value. The fact
is that nothing happens or even matters in real estate until you find a deal,
which is usually accompanied by a motivated seller. This is someone with a
pressing reason to sell below market value. If your seller isn't motivated, he or
she won't be as willing to negotiate.
 Discover the Fine Art of Neighborhood "Farming"
An excellent way to evaluate a commercial property is to study the
neighborhood it's located in by going to open houses, talking to other
neighborhood owners, and looking for vacancies.
 Use a "Three-Pronged" Approach to Evaluate Properties
Be adaptable when searching for great deals. Use the internet, read the
classified ads and hire bird dogs to find you the best properties. Real estate bird
dogs can help you find valuable investment leads in exchange for a referral fee.
By and large, finding and evaluating commercial properties is not just about
farming neighborhoods, getting a great price, or sending out smoke signals to
bring sellers to you. At the heart of taking action is basic human communication.
It's about building relationships and rapport with property owners, so they feel
comfortable talking about the good deals –and doing business with you.
VI.
Pros and Cons of Buying Commercial Real Estate Adelaide
Commercial real estate maintains its value over time as long as it is maintained
properly—it is a long-term asset. Here are advantages and disadvantages of
buying a piece of commercial property.