Nick Souleotis
By Nick Souleotis
A vast amount of popularity has been procured from flipping homes over the past ten years. There is a strapping profit to be made from originally low valued properties. Flipping properties is not only seen in the residential form but also a vast amount of commercial real estate.
Even during the Covid-19 pandemic miraculously flippers continued with a degree of success with gross returns for U.S. homes at the peek that they have been in the past twenty years. Which is quite noteworthy, as a vast number of money-making enterprises lost money during the shutdown.
The real estate and investment firm, CBRE, it is noted that the commercial district is moving towards recovery as more office spaces are now resuming work. The newly adjusted retail operations certainly require more space as the various pandemic restrictions are limited. Currently the vast demand for commercial retail spaces has been in great demand. A report from the Wallstreet Journal states that commercial real estate has returned to pre-pandemic figures. Here are some imperative tips to consider when flipping commercial real estate.
Have A Set of Contacts of Bankers, Lawyers, And Of Course Potential Buyers.
It is imperative to limit unnecessary bills and enhance the usability of the space. It is crucial to keep in close contact with brokers, buyers, and attorneys. By doing this one would better anticipate the exact requirements a potential buyer or tenant may have before you put out the resources needed. Another imperative aspect of having these contacts will enable you to know when a foreclosed or repressed property becomes available. This aspect will give you the first opportunity for this property before other flippers.
Note The Value of The Neighborhood
It is vitally important, to recognize to know one is not just selling the property at hand but the surrounding neighborhood as well. A high-quality commercial space can be built, but if it is in a bad neighborhood the value will drastically decrease. A few key value aspects to note are crime rates, accessibility, and the distance to popular amenities. Recent studies also suggest flippers should study current sales rates and searching future developments in the area. These aspects will give information of what property value will be in the future.
Pay Attention to Foundations First Then Features.
Everyone knows it can be difficult to look beyond an exterior that is disparaged, but what is most imperative to note is the understructure. Cosmetic issues are simple to rectify, however foundational issues are very costly and can be troublesome. When choosing a commercial property consider the value of the most important aspects such as original features, support systems, and architecture.
Some pivotal features to note are, HVAC, wiring, plumbing, and connectivity. Apart from being some if the most imperative features for future tenants these aspects can greatly increase your asking price. If a property has good structure and bones, it will be much easier and vastly cheaper to flip if there are only cosmetic fixes. Another aspect to note is a fresh coat of paint of some good interior design techniques can add a great amount to the property value.
Having a Quality Online Presence
In this vastly digital age, it is noted that the typical buyer and or renter uses their mobile device to search for properties. The latest report also indicates that well over 70% of all tenants use both their social media and mobile devices, such as phones, tablets or laptops to search for real estate. Having an accurate and active online presence is the leading way to attract a multitude of prospects. Having improved marketing efforts to include pertinent platforms, the flipper is making their services and their properties more ascetic and reachable to a mobile buyer.
As with any business there is also a risk with flipping properties, nevertheless by doing ones research, listing your properties online an keeping up with the current market one can reduce their chances of a loss and make a satisfactory profit.
