Before you put your foot in the commercial real estate market, it is better if you gain experience by dealing in smaller residential single properties where you tend to get off lightly when making a mistake. Dealing in commercial properties requires more skills and investments and the consequences of making a mistake could be very heavy.

Commercial properties are those where industrial or commercial activity, including education and medical activity takes place and also properties where 4 or more residential units are located together. The first thing to be ready for such a deal is that all the problems associated with such dealings become varied and multiple as compared to a small residential deal. You hence have to get ready to devote more time and energy in solving problems such as evictions, maintenance, etc, sometimes occurring together at the same time.

Instead of learning everything the hard way, you could contact a commercial real estate broker who could guide you in the first couple of deals so that you can slowly learn the ropes. His experience and style of working should be observed closely so as to spot good deals immediately and avoid costly mistakes. In this way, you can also note down the paperwork involved in the entire process. Also, in many cases, commercial properties are sold in a very hush-hush way and a good commercial broker might be able to ferret out valuable information to help you seal the deal.

You can also set up bigger loans from your bank’s commercial loan department. This will be easy if your previous dealings with the bank have been clear and if you have cleared your earlier loans on time. This will enable you to have the required funds, which will be needed to finance the new big deals. You might be required to place your assets as collateral, but since the interest rate on such big loans are low and the repayment period long, it should be quite easy to manage paying off the loan.

Plan every deal to the last detail and have a backup plan ready to get a fast and painless exit in case your original plan fails. Study your seller’s strength and weakness to get better leverage while dealing with him. By offering the maximum amount upfront, you can get a better deal and hence make more profit while selling. Have a long term plan and be prepared to hold onto some properties for a longer time if the market does not appreciate the way you had hoped.

Check out the appreciation rate of the neighborhood commercial properties before you plan to purchase or sell a property. Hire a good tax consultant who can guide you in tax saving by investing your profits back again into commercial properties so that your profits multiply with the minimum tax liability.

The location of your commercial property is very important. The property should be accessible easily and should be in good condition. Buying and then repairing a commercial property is very expensive and should be attempted only when you have gained enough experience and have the right contacts to get the job done quickly and at a reasonable cost.

If you have the confidence and a proper plan to execute it, then go ahead and get started in commercial real estate.

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Triple net leases are becoming more popular in the Houston area. Here, they are obviously less expensive for the property owner, and can allow a truly passive form of income for the property owner. With one of Houston’s triple net leases, a property owner can be hands off, which is exactly what more and more property owners are looking for. Of course, there are down sides to them as well.

Most triple net leases give control of the property to the lessee, which can be either a good deal or a bad deal, depending on who the property owner is dealing with. They provision the renter to pay for maintenance as well as other costs associated to property ownership.

Before ever purchasing one, potential owners should have these leases looked over by a Houston real estate attorney to be assured that the property owner can still control structural changes to the property as well as enforce the general maintenance that the property requires.

While a property owner can simply go online and download a lease agreement, these leases in particular can work against the owner of the property. Legally speaking, it is very difficult for a property owner to deny liability for destruction of property, especially if they are being held accountable by a third party. A well written, clear and concise lease can help avert such situations.

Every triple net lease property for sale in Houston is going to vary at least in structural repair requirements. Many of them require the tenant to pay for everything except roof repairs while some require everything including roof repairs. A bond clause requires the tenant to pay for the property even if the property doesn’t exist anymore, such as the loss resulting from fire, flood, earthquake, or other natural disasters.

Triple net leases are a hard sell for potential tenants, regardless of whether you are referring to residential tenants or commercial tenants, and there has to be a motivation for the tenant. There is an exceptional amount of negotiation associated with them, and potential purchasers should yield to caution when entering a pre-existing lease.

Leases for sale with huge profit potential can be difficult to find. They take a bit of cultivation, and a bit of finessing to create the perfect situation. If the tenant of a triple net lease is not worthy of the sale, the sale will often never materialize.

Both the landlord and the tenant can benefit from a triple net lease and can experience great frustration from them too. Keeping in mind that the tenant who agrees to one needs to get something out of it, purchase of a triple net lease in Houston can lead to more pitfalls than necessary if the situation hasn’t been scrutinized.

In most cases, residential leases in Texas are rare. It costs too much money. The only notable exception to that rule refers to some apartment buildings, usually units that house between 6 and 12 units. These can be an acceptable alternative to home ownership under the right circumstances. The vast majority of triple net properties in the area are commercial properties.

Finding an ideal triple net lease for sale in Houston or the surrounding area can be considered an impossible task. Because they are unique between landlord and tenant, most ideal situations are created rather than purchased. Those leases which are up for sale are often good situations, but a potential owner is hard pressed to find a perfectly ideal situation unless they have created it for themselves.

Creating one and then selling it can be ideal for those looking for a high end real estate business. Some of these leases are signed for as long as 50 years, offering up some very tempting terms for a potential buyer. After all, provided that the lease is signed for an extended period of time, the lease can provide a significant income-expense ratio for the owner. Additionally, the resale of one can also bring in revenue.

Anyone considering purchasing a triple net lease for sale in Houston should never consider the purchase without the assistance of an attorney for the simple reason that these leases are personalized per situation.

A great find will still be a great find after a lawyer looks over the lease. A good find can turn into a great find after an attorney evaluates the lease. Then of course, a lawyer can save you much headache and pain when it comes to a triple net lease that shouldn’t be touched with a single dollar.

The Johnson Development Corp. is a Houston-based residential and commercial land development company that has over 40 years of experience in the real estate development business. For more information visit http://www.johnsondevelopment.com