Things I Learned After Attending Commercial Property Auctions

commercial-property-auctionsCommercial property auctions can get your adrenaline pumped up as much as the next roller coaster does. It’s an experience like no other with its highest of thrills and the most chilling of scares. But once you make it to the end, it’s something that you’d likely want to try again. It’s addicting to say the least especially with its slew of benefits. Besides, it’s quite the joy ride for adventure seekers and risk taking investors.

I’ve been to a good number of commercial property auctions and if there’s one thing I could tell you, it’s that it’s a learning experience. Over the years, I’ve had my fair share of successes and few misses. With that, I’ve gotten hold of tricks and advice, some I learned by myself while others as a piece of knowledge handed down by my seniors.

Now it’s my turn to pass it on. Here are some do’s and don’ts to remember when participating in commercial property auctions.

Start to observe not to bid. Nobody enters the scene a master and a jack of the trade. Seniors investors advised me and what I soon realized after my first auction is that it’s best to sit the first one out. In other words, participate to observe not bid. This is the perfect time to have your first taste of the scene. Get familiar with the process and how people interact. Don’t feel too hot and heady to go to war just yet.

Never believe everything. Auctions are still sales only more competitive in the upfront sense. Take all information about the asset being sold with a grain of salt. You must first check and validate. Sales talk and sugarcoating are not screened. Always perform adequate research about the seller, the auction house and the asset. In fact, run a background check on the properties you like and visit them prior to the event.

Keep asking not answering. Keep your cards as close to your chest and avoid divulging information such as the assets you fancy and how much you’re willing to spend. They can be used against you. In fact, be the one to do all the asking. Inquire about the assets but don’t be too keen to the point that you show high interest because sellers might just raise the minimum price or other bidders might get the idea that you’ve found a treasure.

Prepare your financing early. When attending commercial property auctions, you have to be financially ready. Pre-approve and have your funds at hand because winning a bid won’t suffice. You need to pay for it, often with a percentage upfront.

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Factors to Consider in Choosing an Investment Property

Choices are very tricky. In a world where that presents so many alternatives, isn’t it a lot of pressure to choose the best? Especially when so much is at stake, it becomes extra crucial to weigh the pros and cons of every given option to truly assess which one fits the bill. The same is true when choosing an investment property.

Real estate comes in all forms and sizes. It’s not surprising that many people deem it overwhelming. But to win the game, the secret lies in the manner by which one examines the choices at hand. That said here are the factors to consider when choosing an investment property.

#1: FINANCES

Determine how much you can afford. Find out which funding options are available given your current financial standing and credit score. Because these acquisitions will demand considerable money, it is crucial to determine what you can and can’t afford to buy.

#2: NEEDS

There’s a reason behind every investment. What’s yours? The purpose determines the needs. Is it for personal use or for business? What type of property do you seek: residential, commercial or industrial? Because these needs will have to be met, you will find that not all available assets fit your interest.

#3: LOCATION

A major feature of any property that plays a huge role especially in terms of value and convenience is location. Growth areas, those with high foot traffic and are near transportation hubs make for worthwhile purchases especially if we think commercial and retail. Which location suits best will still depend on your need.

#4: LAND

There’s more to land that simply its area or size. It’s important to also assess its quality. For instance, agricultural lands should be rich in nutrients to be able to grow crops while lands for residential, commercial and industrial purposes should be strong enough to stand as foundation for a building construction. Not all lands are the same. Keep that in mind.

#5: ONGOING COSTS

This is a common factor that many people forget when choosing an investment property. Because ongoing costs occur after the purchase, they are often overlooked. Comprised of repair and maintenance expenses, these are regular disbursements spent on equal intervals, often monthly and yearly, that must be met to keep the functionality and value of the asset. Some assets may appear affordable upfront but with staggering ongoing costs, they’re very expensive in the long run.

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Investment Property Tips by Robert Kiyosaki