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Commercial_Real_Estate_-_A_Primer

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					Title:
Commercial Real Estate - A Primer

Word Count:
449

Summary:
So how exactly are commercial properties being bought, sold, being
rented? What’s the best way to acquire commercial real estate, and who
you need to help you in doing an acquisition?


Keywords:
real estate


Article Body:
Commercial Real Estate – A Primer

When speaking with a group of real estate investors recently in
Philadelphia, the question arose as to how many of them have completed a
commercial real estate deal in the last year, and surprisingly, the
answer was none. It seems that many of them were either happy with the
currently market conditions or they didn’t really have the aptitude to go
about buying a commercial property.

Market specialization? No. It seems that the majority of real estate
transactions go something like this:

1.    Residential real estate is the sweet spot of the small real estate
investor.

2.    Commercial real estate is typically left for the small business
owner, who has decided to stop renting.

3.    Both of these sectors of the real estate industry do have some
crossover, but the previous two statements are typically the norm.

So how exactly are commercial properties being bought, sold, being
rented? What’s the best way to acquire commercial real estate, and who
you need to help you in doing an acquisition?

Here are five key points to consider:

1.    By far the most popular business entity for owning commercial real
estate is now the limited liability company (LLC).

2.    Commercial real estate is a much less popular subject, in part,
because it isn't as personal and doesn't tug at our own financial purse
strings.

3.    Commercial real estate is a term to describe a property with 5 or
more units. Commercial Real Estate is a critical component of any well-
run business.
4.    Investing in commercial real estate is riskier and more costly than
investing in residential property - but ultimately it can be far more
profitable.

5.    Commercial real estate is a business investment driven by economic
factors, not so much the property itself.

Investing in commercial real estate can be a good way to invest but you
should make sure you are well represented by an attorney and accountant
before moving forward since buying commercial real estate can have
significant tax consequences and if you're buying or developing
commercial real estate, it's important to protect your financial
interests with legal support. It may sound redundant, but the axiom
location, location, location, is an important factor in buying commercial
real estate too. Here is the key to buying commercial real estate: the
one with the most information wins.

The winners are the people that recognize that the world of commercial
real estate is constantly changing and understanding the nature of
commercial real estate is a precondition to the timing question. They
also understand the data and realize that information is the most
critical aspect of any transaction. In other words, the most valuable
commodity you can have in the commercial real estate market is
information.

				
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posted:3/24/2012
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