Commercial real estate is a highly profitable industry where many people dedicate their lives. Like the many divisions of a Fortune 500 company, the commercial real estate industry has many opportunities for those with professional educations and interests. Some professional interests may include legal counsel, accounting, finance, development, building and investing. When it comes to the commercial real estate industry, these professionals are highly specialized in their knowledge and perform amazingly well within their boundaries.

These highly specialized professionals are often grouped together in teams by commercial real estate investors. A savvy investor surrounds him or herself with competent professionals to make sure that every deal that is made yields the highest most profitable results, with little to no problematic factors.

If you look at the residential investor, however, he or she usually does not have a huge team surrounding him or her and can usually invest in a few homes at a time with ease.

Why is it that the residential investor does not need a full time team to look watch over and consult every deal prior to purchase? Beyond the obvious reason that residential real estate does not involve nearly the millions, tens of millions, hundreds of millions and even billions of dollar price tags and profits that commercial real estate is known for, there is another very important attribute of commercial real estate that separates it from residential real estate.

This attribute is characterized by a term known as "buyer beware."

We all know that with most residential real estate, the buyer must be disclosed of every aspect of the property- good or bad. For example, if the roof was leaking in a home, but it was summer so the purchaser may not necessarily find out until rainy season, then the owner or agent must disclose this fact to the purchaser. It is illegal for the owner or agent to withhold any information from the purchaser. This law greatly decreases the risk on the purchaser's behalf and if a problem arises that was not fully disclosed at the time of purchase, then the purchaser could receive his or her deposit back and the owner and agent could suffer penalties.

In residential real estate, the buyer does not need to beware (in this sense) because every detail must be disclosed so he or she has the absolute facts on a property before deciding to part with a down payment or take out a mortgage to purchase the property.

The opposite is true in the commercial real estate industry. The owner or agent does not need to disclose any information about the property to the purchaser. In fact, if the new owner discovers that the land he or she purchased is toxic, and the previous owner or agent said nothing, it is the new owner's responsibility to have the land cleaned. The new owner must pay all legal and cleaning bills that come along with toxic property.

This may seem rather unfair. Why should the residential real estate industry have full disclosures while the commercial real estate industry does not? In commercial real estate, you have a certain amount of time prior to purchase to perform due diligence, or a complete analysis of the property. This may include building inspections, soil tests, infrastructure analysis, financial analysis etc. The buyer is completely responsible for retrieving the facts on a property.

It is considered an open and free market so, "buyer beware." There is a lack of need to protect the buyer or seller by the law. Therefore, it is increasingly important to have commercial real estate professionals looking out for the commercial real estate investor at every turn.

Because the law does not protect the buyer, the buyer must protect his or herself. Legal counsel should be brought in to oversee every single deal. This includes conditional statements on a contract and performing the most in-depth due diligence one can possibly do. Commercial real estate is not something you can look at for a few weeks and then decide you want to purchase like a home. It can take 45, 60, 90 days and more to perform due diligence, depending on the purpose of the property and how complicated the property is.

Let's look at an example. Purchaser A wants to purchase a property from Seller B. The property is raw land and is currently zoned R-1, or residential lots one lot per acre. According to the agent, there is a good possibility that the city needs additional commercial land to balance out the additional homes and apartments that were recently built near the subject property. For this reason, the city may be interested in rezoning the land from R-1 to commercial.

Purchaser A can see the profit potential of this rezone and wants to purchase the property. Purchaser A lets the owner know that he wants to purchase the currently zoned R-1 property. Purchaser A is acting in good faith that the property will be rezoned to commercial. But just in case, Purchaser A includes a conditional clause that states that if the property cannot be rezoned to commercial, then the contract is null and void. Purchaser A will no longer have a liability toward the property and owner.

This was an intelligent move Purchaser A made because in this case, the property could not be rezoned to commercial. Instead of sitting there with a much less valuable R-1 zoned property, Purchaser A was left with no property at all, but no financial or legal problems either. And that is far better than a worthless property and a legal battle to contend with.

Every commercial real estate deal is extremely different. Buyer and seller personalities, the quality of due diligence, the integrity of the buyer and purchaser, the financial needs, and skills of professionals such as the escrow company and commercial real estate owners all play a huge role in how each deal results. The best and most sound advice I can give you is never take what you hear for face value. Verify every fact and have your commercial real estate professionals available at every turn. The information they can conjure can save you a lot of money and legal headaches by simply getting the facts verified and inserting conditional clauses in the contract.

If you are new to the commercial real estate industry, realize the rules are a little different and a lot more is at risk than in the residential real estate industry. Keep the "buyer beware" mentality alive at all times and allow professionals to do their jobs. That is what they are there for. Surround yourself with the best and you will quickly become the best.

Now that you have had a chance to look at "buyer beware" and how it plays a specific role in both the commercial and residential real estate industries, you can greatly appreciate the additional risk in doing commercial real estate deals as well as the importance of solid commercial real estate professionals working in your best interest. Without them, there would be far more problematic deals- and that is exactly what you want to avoid.

The prestigious Real Estate Executive Magazine features the story of Carl and Karen Moose and their company Investment Realty Services in the November, 2007 edition.  

"Carl and Karen Moose are two very busy and successful commercial real estate professionals with an active young family — "three under three," as they say — and an impressive list of colleagues, clients and investors who have nothing but praise for the deals they put together. Investment Realty Services, Inc., expertly manages their investors’ real estate assets by providing brokerage, investment services and property management services. IRSI acts primarily as buyers’ agents for investors and represents those who are looking for a long-term strategic partner to support their interests. Their clients also include passive financial investors such as doctors, lawyers and business owners.

Karen is president of Investment Realty Services, and Carl works as managing director, officially speaking. As they explain, this means that Carl focuses his efforts on finding great commercial properties, analyzing them and putting deals together for his company and investors, while Karen puts her energy into managing the properties they own, raising capital, and forging and maintaining strong relationships with colleagues, clients and investors…"   Here's a link to the complete article: Investment Realty Services: Diverse Beginnings

Commercial property for sale is gaining popularity more than ever, but is still a difficult venture especially for the newbie real estate agent. This can sometimes cost an enormous amount of money. Which is why free classifieds offers a place for you to list your commercial property, whether you are a real estate agent or a private individual.

The following article offers you some methods in exposing your commercial property without spending a fortune on advertising.

1.List Your Property Online For Free

Many online classifieds allow free ad posting for your property for sale. These sites even lets you list your properties in bulk, without restrictions. Often, Australian real estate listings online get you more exposure quickly without asking you to pay huge prices compared to traditional classified ads in your local paper. Also, they provide more marketing and advertising options for your convenience. Sometimes it is worth putting a little money into some ads if it means the difference between having to pay a commission and pocketing it for yourself.

2.Invest in a Quality "Commercial Property for Sale" Sign

A good quality "Commercial Property for Sale" sign is an excellent way to make people know and get interested in your property. If you are situated on a major road, a good sign attracts passing traffic and locals looking for property to move their business. Basically, your sign targets those people who may not have gone through the Net for Australian real estate, or those who may have missed your real estate listing. In successfully advertising commercial real estate for sale, you have to explore all available options, whether online or offline.

Many people are unaware of the properties around them and do not have the time to go looking. By placing a large visible sign on your property, you can draw attention and create excitement in the property.

3.Free Real Estate Publications

Many suburban areas have 'free' local publications that include real estate for sale in the area. Contact these publications and see if they take advertisements free. Since most are looking for 'free' content to add to their publications, they are usually very willing to work with you.

If this doesn't work for you then you may need to contact a commercial real estate agent and work with them to get your property sold. Many sites provide information on property brokers in different areas and they can assist you to find a professional who will be able to help you too.

No matter what, keep your ads going. It can take quite a while to sell your commercial property depending on your area, but continue to provide information in publications and websites, and your efforts will bring rewards in no time.

Commercial property for sale is gaining popularity more than ever, but is still a difficult venture especially for the newbie real estate agent. This can sometimes cost an enormous amount of money. Which is why free classifieds offers a place for you to list your commercial property, whether you are a real estate agent or a private individual.

The following article offers you some methods in exposing your commercial property without spending a fortune on advertising.

1.List Your Property Online For Free

Many online classifieds allow free ad posting for your property for sale. These sites even lets you list your properties in bulk, without restrictions. Often, Australian real estate listings online get you more exposure quickly without asking you to pay huge prices compared to traditional classified ads in your local paper. Also, they provide more marketing and advertising options for your convenience. Sometimes it is worth putting a little money into some ads if it means the difference between having to pay a commission and pocketing it for yourself.

2.Invest in a Quality "Commercial Property for Sale" Sign

A good quality "Commercial Property for Sale" sign is an excellent way to make people know and get interested in your property. If you are situated on a major road, a good sign attracts passing traffic and locals looking for property to move their business. Basically, your sign targets those people who may not have gone through the Net for Australian real estate, or those who may have missed your real estate listing. In successfully advertising commercial real estate for sale, you have to explore all available options, whether online or offline.

Many people are unaware of the properties around them and do not have the time to go looking. By placing a large visible sign on your property, you can draw attention and create excitement in the property.

3.Free Real Estate Publications

Many suburban areas have 'free' local publications that include real estate for sale in the area. Contact these publications and see if they take advertisements free. Since most are looking for 'free' content to add to their publications, they are usually very willing to work with you.

If this doesn't work for you then you may need to contact a commercial real estate agent and work with them to get your property sold. Many sites provide information on property brokers in different areas and they can assist you to find a professional who will be able to help you too.

No matter what, keep your ads going. It can take quite a while to sell your commercial property depending on your area, but continue to provide information in publications and websites, and your efforts will bring rewards in no time.

Commercial real estate listings in Michigan area are
available for your review and purchase. You can
purchase a commercial site that is already
established, or you can purchase a commercial lot that
is just waiting for you to build, develop and bring in
the people to make the sales. The average family
income in Michigan during the year 1999 was about
$42,000. For the business, this means there is money
available in the family units to support various types
of industry, such as pools, spas, camping, and many
other types of hobbies and sports as well.
Commercial real estate listings are those that will
include retail centers, doctor's offices, business
settings and similar retail situations. Commercial
listings are wide ranging, from the small lots, to the
huge office buildings where hundreds of employees
could be located. Commercial real estate in Michigan
is one that you should consider if you are thinking
about relocating your business, or if you are
contemplating starting a new business venture.
Mortgage rates are always changing, and for the prime
locations in Michigan you will find your real estate
investment is well worth the mortgage you will be
paying. If you have completed a business plan,
detailing your business ideas, your business traffic
needs, and the demographics of who your customer base
will be, you can find a real estate investment in
Michigan that will fit this requirement. Many
commercial real estate settings in Michigan will
service many functions in promoting your industry.
When you are looking for commercial real estate
listings in Michigan, there are many different ways to
go about it. You may have a pacific idea to where you
are looking for the commercial property. If you know
where you want to have your company that is a big
advantage because you will be able to narrow down your
search a little because of where you are looking.
Some of the listing areas are the Lakefront Real
Estate Michigan or Waterfront Real estate but there
are many more areas that you may be looking at for the
commercial real estate that you whish to have your
company at for business, some are considered prime
locations, while others are commercial settings thatdo not have the heavy traffic. One thing that you are
going to want to do is check out what area in Michigan
would be the best for your companies business and for
the consumers as well. If you need heavy traffic to
get the high numbers of customers, you should seek out
some of the prime locations, which can be a bit higher
in cost, but well worth the investment.
Once you have done some of the work on checking out of
the different locations, you will notice that there
are areas of the state that is going to be a great
location for your business of operation. Many
companies may choose to have their business location
near the lakes so that they have some easy access for
shipment and deliveries in many different ways beside
vehicle. If you are checking out the lakefront real
estate in Michigan, you may notice that you are going
to need to be ready to pay a little more for the
property because of its location but it could be a big
benefit in the long run when you think about the
different ways that you are going to be able to ship
and receive deliveries and even the possibility of how
many consumers that would be available if you are in
the business of sales because of the visitors that
could come to your shop some supplies or needs for
their vacation. That right there would be a great
advantage to acquiring some Michigan waterfront real
estate when you are going to start up a business of
sales that would be a benefit for the vacationers. If
you have, a product or service that would benefit the
many who love to vacation you should search commercial
real estate in the Waterfront Real Estate Michigan
listings.
Michigan waterfront real estate is a prime location
for many types of business, not only because of the
high number of tourist that come to this area, but
also because of the high number of traffic daily that
will see your business in this area. Grand Blanc
Michigan Real Estate is also a prime location for
commercial real estate, as this is an area that is
growing yearly, with new residential areas expanding
around the commercial area. About seventy percent of
the homes in Michigan are two and three bedroom homes,
housing families that are available to support the
commercial sales needs.

Commercial properties of all kinds can be held within an IRA if it is structured correctly. This includes everything from small gas stations to larger strip complexes, mini-malls to mega-malls, and industrial parks to high-rise office towers. Any property that will be used (almost) exclusively for business can be considered a commercial property and its purchase can be treated as any other real estate transaction–as far as your self-directed IRA is concerned.

The main reason to open a self-directed IRA for real estate transactions is for the freedom of action. You can move on a property when necessary and pay all required fees and costs directly from the IRA. With a Limited Liability Company, you maintain checkbook control of your account. That is the most crucial aspect of a self-directed IRA because it speaks directly to the number of fees you will have to pay over the life of the account.

For an IRA investment involving commercial properties, you will be required to pay certain business expenses from your IRA. If your IRA custodian requires you to pay a fee for every transaction involving assets within your IRA, you can see how quickly a real estate investment could eat up your profits. However, when you maintain the checkbook, you can minimize the accumulation of extra fees.

Other Types of Commercial Property Investments

Other than the few mentioned above, there are almost limitless possibilities for investing in commercial properties. You can invest in franchises, golf courses, car washes, hotels, timberland, storage facilities, resort properties, and more. With a self-directed IRA LLC, these properties can be foreign or domestic (with the caveat that any foreign property should be in a place with at least semi-reliable government stability).

Coaching You to the Next Level

I want to take a bit of a side-trip from my usual hard-hitting commercial mortgage loan and investment property advice. I had the opportunity to spend a few days at the Pacific Life Open tennis tournament in Indian Wells, California last week while on vacation and noticed a minor, but significant change in the rules. The change was minor in that the players were allowed to ask for a time out to spend time with their coaches between sets. It was significant because the opportunity to speak with their coaches helped several players turn their games around.

For those of you not familiar with the rules of the Association of Tennis Professionals (ATP) coaching during a match was, until recently, against the rules. In fact, a player could be penalized points during a match if the umpire felt that he or she was getting verbal or non-verbal coaching tips during a match.

I point out this concept of "coaching" because it has implications in commercial real estate investing.

Have you ever stopped to consider why the best sports figures and Fortune 500 CEOs hire coaches? On the surface it doesn't make sense. These people are the best in the world at what they do, so who is realistically going to be able to help them get even better? Well, as I'm sure you already know, the reason that they are the best is because they have coaches. Coaches provide several things for those at the top of their profession and those seeking to improve their performance:

1. An external, unemotional perspective to help the one coached see things that they can't perceive about their performance.

2. Information on new aspects of the profession or related professions to help increase performance.

3. Networks of other professionals who can help in areas where the performer is weak.

4. Experience from their past challenges, helping the one coached move ahead faster.

So what does this have to do with commercial real estate?

Whether you're just starting out or are a seasoned development professional, I can guarantee that you'll get better if you enlist a commercial coach or coaches to help you grow. So where can you find a commercial real estate investment coach?

Let me note that we will soon release coaching programs for investors and loan agents who want to break into and excel in the commercial side of the business (email us here for more information: Coaching@InvestmentPropertyInsider.com). However, until those coaching programs are up and running, here are some suggestions on finding and using a coach to help you get better at investing faster:

1. Consider a retired commercial developer, investor, or real estate agent. You could check with a local commercial real estate office to ask if anyone is retiring soon or has recently left the business. Approach them with the concept of becoming an apprentice and giving them a piece of your profits. They might just enjoy passing on their wealth of experience.

2. Check with a local S.C.O.R.E. office to see if there is anyone who has experience in the commercial real estate investing or development businesses. S.C.O.R.E. is a non-profit business resource group and can be found at www.SCORE.org.

3. Do you know anyone in the business that is already successful? Approach them with the idea of becoming an apprentice, but be very mindful of their time when you do. Again, consider offering them some of your profits as compensation.

4. Consider a personal or business coach for hire. There are a lot of people in this business and some of them are very good. I'd caution you to be very careful whom you hire, however. You're looking for a specialized type of coaching here, more than the generalized life coaching that a lot of these people offer.

I would suggest a few other points in selecting a commercial real estate coach:

1. Make sure that they have actual experience in commercial real estate investment, sales, or lending.

2. Hopefully they will provide you with access to experts in related fields to help you understand all aspects of the business.

3. They should allow you to access other investors so that you can network, share resources, and benefit from each other's experience.

4. They should provide an archive of useful information, resources, and tools for your benefit, accessible at any time you need.

As I mentioned, having a coach handy helped several players turn their matches around to advance to the next level at the Pacific Life Open. You should strongly consider your own coach to help you get to the next level in your commercial real estate game, too.

Commercial real estate is distinctly different from residential real estate. The terminology is very different and here is a list of new terms from O to Z.

Commercial Terms

Operating Expenses: Just as it sounds, operating expenses are those costs associated with operating a commercial property. Contract and state law typically govern the exact nature of the operating expenses.

Partition Wall: A wall built in the internal area of a suite to divide the general space. For instance, offices built during a tenant improvement project with have partition walls separating them.

Punch List: A punch list runs part and parcel with a walk through of completed construction work. The construction company and client will walk through the area and complete a punch list of items that need to be fixed or modified. .

Shell Space: The interior of a commercial building that has been completed, but does not yet have any tenant build outs. The shell space generally refers to this gross square footage regardless of whether tenant improvements have occurred or not.

Substantial Completion: Notice given by a contractor to the client indicating the property has been completed to the point where a walk through and punch list review are appropriate.

Usable Square Feet: The square feet in a building, suite, warehouse and so on that can actually be used by tenants. Due to building regulations and design issues, certain amounts of a space in a tenant suite may not be usable and such footage is excluded from this calculation

Unlike residential real estate, commercial real estate is primarily considered a business transaction. Learn the terms and you're well on your way to moving smoothly through the process.

Looking to generate a few extra thousand dollars per month to help plan retirement or your children's education? Are you always stressed out and feel anxious everyday when you go to work, knowing that today could be your last or that your employer might fire you without a moment's notice? Help put such fears to rest by getting into commercial real estate marketing, commercial real estate investing or even to become a commercial real estate appraiser, whatever you wish to call it, hopefully this article can be a solution for you.

Commercial Real Estate refers to the property that has potential to generate extra income and with a little work and dedication on your part, thousands more in extra income. Commercial real estate generally includes office buildings, retail properties, apartment units, condos
and raw land.

A few tips when it comes to selecting such real estate areas includes good old fashioned common sense but also location, location, location.
First you have to know if you would like the place yourself. Would you want to have your own building there or company or factory? Do you think the location has a great future? Is it in a high traffic area? Will there be further development in the area even if the current real
estate market is quiet or not as developed as you would prefer it to be. Is it close to public transport where people will be getting on and off buses or catching the subway or close to parking lots? These are all valid points to keep in mind when looking for that great commercial real estate property to help propel you future income.

Finally, you should always shop around and do your research on such deals. Never be too hasty and allow emotions to make your decisions for you. Try and always obtain that balance between risk and safety and realize that there is risk in every thing, it is just a matter of how much risk you can accept.

For further information see the site http://netdollarz.net/2007/04/25/-5-commercial-real-estate-development.aspx

Commercial real estate is a wonderful, exciting business that can offer a wealth of opportunity for those who look for it! Many people are often hesitant to enter such a market as commercial real estate for many different reasons. In fact, there are some major misconceptions about commercial real estate which I am going to address here.
Many people who hear about commercial real estate, but aren't necessarily in the business, often use the expression "Location, location, location!" Many people associate this expression as the truth, that the three most important attributes about a property are "Location, location, location!"
I am here to tell you- this is absolutely not the case! Now, I am not going to say location is not important, but what if you have a beautiful location for a mountain resort, complete with snowy hills, a perfect location for a lodge, and beautiful mountain views? What you want to do to the property is improve it for a weekend getaway for romantic couples with a beautiful lodge, resort, luxury type housing, and perhaps some individual cottages overlooking the green forest. Sounds great, right?
The perfect location- you can't beat it! But, you learn that the zoning for this property is residential, R1, to be exact. The use is only one single family residence per acre, and no commercial property allowed. What happened to your "Location, location, location?" It flew out the window!
The most important aspect of a property is the use. What is it intended for by designation of the city or county? It does not matter where the property is, if you cannot get the zoning that is in the realm of your intended use.
It is possible to get properties rezoned, especially as cities change and grow. Be sure to consult with the city or county to determine if these changes are even possible, because you do not want to buy a property that you cannot rezone, and be left with an unprofitable property on your hands.
Most people believe that commercial real estate is complicated and you need a special education or know how to succeed in the business. Many think that commercial real estate is filled with international finance, heavy and complicated math, complicated tax rules, and forms and applications that are just too complicated to understand correctly.
I am happy to tell you this misconception is the worst, because it puts a road block in front of many people's aspirations to become a commercial real estate insider. Let me put this misconception to rest. There is math involved, and most of it is not at all complicated: simple ratios, adding, subtracting and multiplying. What is even better is you don't have to do the math. There are others who can do that for you. The same is true with property management, inspecting the property, and doing the year-end tax report. In fact, commercial real estate is less complicated than residential real estate because you can focus your energies on a single deal that will be worth perhaps 10, 20, even 50 residential deals and more!
Let me put it into perspective for you. If you owned a business (many of you may), would you create strategies, keep the books, manage the many locations, sell on the front floor, and take out the trash after the day was over? I think not! Commercial real estate is made up of many people whom are there to help you with whatever you need. You must position yourself as a real estate insider, which is a leader in the business.
Another misconception is commercial real estate is management intensive, that you must manage every property you own. Let me tell you when you end up owning 10 or more properties, this is almost impossible to do! You do not have to actually manage your properties yourself, so you can concentrate on creating more deals. Hire a company or set a team in place to take care of this "day-to-day" business.
As you can see, what is passed around in dialogue about commercial real estate is not always true. Before you take everything to heart, be sure to get your facts straight. In fact, many people in this profession speak about commercial real estate as a business in which only the savvy and sophisticated can succeed. They often act this way because they want to keep people out of the market by differentiating themselves. If you were in this position, you would too!