Stretching 190 kilometers eastward from New York Harbor to Montauk Point, Long Island is easily one of the largest and longest islands in the United States. Being an area that’s overwhelmingly populous and teeming with people out and about, it only makes sense to invest in Long island residential real estate.
How to Find Commercial Real Estate in Long Island
Any real estate professional would definitely recommend anyone to invest in commercial property simply because there are plenty of benefits. There’s the continued cash flow, an open playing environment, profitable scale economies, the wide range of target market, reasonably-priced property, and of course, the higher payoff.
However, if you’re not a professional in real estate, how do you know you’re getting the best real estate deal and what distinguishes the good deals from the not-so-good ones?
As in most real estate investments, success has to start off with a fairly good blueprint. Here are a few tips to help you get a hint of a good Long island residential real estate deal.
1. Familiarize Yourself with what the Pros Know
If you really want to delve into the world of commercial real estate, you have to put yourself in the shoes of these professionals. For instance, you ought to know that residential property is assessed differently from residential property. The revenues from commercial real estate are related to the usable square footage, but with residential properties, it’s a different story.
There’s also a whole lot more cash flow when it comes to commercial property. The formula is quite simple. For example, you’ll earn more on multi-unit properties than commercial space that can accommodate only one tenant business.
2. Have a Plan of Action in Hand
You need to have a very specific set of goals to accomplish at the very beginning. What’s your maximum budget for a property? How much are your expected earnings on the said deal? How many tenants are paying rent?
3. Recognize a Good and Worthy Deal
You may not be a certified pro when it comes to Long island residential real estate dealings, but identifying a worthy deal when you come across one can be pretty handy. Remember that the pros do have exit strategies and for them, the ones you are willing to walk away from are the best deals. It also pays to have a keen eye by always looking for damages that need repairs, evaluating risks, and making sure that the property is able to meet your goals financially.
4. Know and Understand the Metrics of Commercial Real Estate
Some of the most common metrics used when assessing real estate include net operating income, cap rate, and cash on cash.
The bottom line here is when finding and assessing commercial properties, you have to have an eye for detail and have constant communication with the seller.