Listen up, investors! Have you thought about the residential and industrial real estate market? Check out the latest tips for breaking into the industry.
Everyone knows that if you’re looking to make money, real estate is one of the most areas you can get into. It’s difficult to build true wealth from labor alone. Luckily for you, you can get an Illinois real estate license online, or one from any other state in America.
Instead, the investment can reap the rewards that many Americans are looking for.
What area should those looking to get into the real estate game consider? There’s a lot of focus on residential properties and AirBnbs over the past few years.
However, the best place to enter the market might actually be with industrial real estate.
As e-commerce continues to grow, space for companies to mass produce, organize, and store various products will become all the more important.
If you’re looking to break into the residential real estate market, what are some of the essential things you should know?
Read on and we’ll walk you through a few key tips that can help to line your pockets.
- Location is Still Important
You might assume that because consumers and clients won’t be visiting the property themselves that the location of your real estate investment is less important than it would be than with other areas of real estate.
You’d be wrong!
Even in the world of industrial real estate, location is key and cannot be undervalued.
The proximity of a real estate development to wealth, large population centers, and general areas of interest will all be big attributes that determine it’s value.
Just as important will be access to the location. Is there a highway nearby? Hospitals?
Other pertinent businesses whose services one might need? These are all factors of convenience that those looking to go into business with you are going to consider.
After all, even though consumers won’t be visiting the site, there will still be many employees and people from the business that need to show up. Convenience is still a factor.
The better your location is, the more leverage you’ll have in negotiating with those interested in your property. Do not undervalue the importance of this element!
- Know What Elements are Important
The elements that are going to be important to investors in industrial property are going to be much different from those in other areas of real estate. Cosmetics, as you might expect, are going to carry less weight.
The major elements you’ll want to look at when considering industrial real estate properties is the roofing and the HVAC system.
The strength and stability of these two elements are essential, as the costs of repair and replacement can be overwhelming.
Try and determine the age of the current roofing. Is it older than ten years? If yes, you can expect to find a major downturn in the valuation of the property.
A roof of that age will tend to develop issues and might even need to be fully replaced at some point in the future.
The edges of a roof are often the first to break down. If you’re doing your own inspection of a property you’re interested in, make sure to look at the edges of the roof first for evidence of potential problems.
Consider the material as well. Many industrial sites have metal roofing, though your particular property could have another material in place.
HVAC units operate under a similar set of rules. A unit that is older than ten years is likely going to still be functional, but it will require more regular maintenance. How much will the repairs you need to do cost you?
That’s a more difficult question, as it will vary from unit to unit and situation to situation.
You might need to bring in an HVAC specialist to evaluate the situation and advise you on how expensive maintaining the current set up might be.
You should certainly get a repair estimate prior to making an investment.
- Understand Loading Docks
You need to know how to speak to potential clients about the concerns they have with residential properties.
Loading docks are key for these kinds of locations as the product is going to be moving in and out of the location at great quantity.
In most industrial properties, you’ll either find a dock high loading dock or a grade level loading dock, which is also referred to as a ‘drive-in.’ These two types are really intended for different kinds of trucks.
Dock high docks are designed for larger trucks, such as massive 53-foot long semi-trucks.
18-wheelers. These docks are large enough that the trucks can back straight into the building and unload safely.
Grade level docks are older and typically pre-date the design of many modern trucks.
This kind of dock is going to be far less efficient for those businesses that employ a large number of semi-trucks and have many going in and out.
However, this dock can work well for smaller businesses that don’t have these kinds of trucks coming in all the time. They can provide a much more economical working and loading space.
In fact, businesses that don’t employ semis would likely have a hard time making a dock high loading dock work for their purposes without heavy modifications.
At the end of the day, the kind of dock your property has might make an impact on the type of business you end up working with.
It’s important to understand this prior to making an investment. Adjust your expectations accordingly.
Essential Tips for Industrial and Residential Real Estate
It’s a wise choice for anyone in the modern era to get into industrial real estate.
There’ a lot of money that could be made in that area currently. The above tips can help you to best position yourself in this enterprise.
Need more real estate advice and tips? Keep scrolling our blog for more.
