Commercial real estate can be a great financial investment- you can either use the space for your own business, or you can lease it out to other business owners. But finding the perfect commercial property can be difficult and time consuming. If you are thinking about purchasing commercial property, consider the following tips:
Spend a Lot of Time Planning
Since buying commercial real estate is such a large investment, it is essential to spend time planning prior to even contacting a real estate agent. Think about what size of property you want, and what locations you are interested in. It is also a good idea to have a ball park figure of what you think you can afford, how you will fund the down payment if you are financing the property, or how much you are willing to spend if you are making a cash purchase.
Work with a Team of Experts
Buying commercial real estate is typically more complicated (and more expensive) than buying residential property, so it is in your best interest to work with a team of experts who can help facilitate the deal and ensure that it is completed properly. Plan on working with:
- Commercial Real Estate Agent: A commercial real estate agent will guide you in choosing the best commercial property, and making an offer to the seller.
- Accountant: Your accountant can help you determine what amount you can actually afford to pay for a commercial property, and also find all of the tax benefits of owning the property.
- Commercial Real Estate Lawyer: Your lawyer will examine all of the legal aspects of the purchase, and ensure that the deal closes properly.
- Commercial Mortgage Broker: If you are financing your purchase of commercial property, a commercial mortgage broker will work with you to find the best lending options.
Visit a Number of Properties For Sale
If this is your first time buying commercial property, make sure that you look at several different properties so you can get a good idea of what you want and don't want. Do your homework on each property that you look at—find out the cost of taxes, as well as how the property's value has changed over the past few years, and why the owner of the property is selling.
Hire a Highly Experienced Building Inspector
After you find the perfect property and have your offer accepted, the deal will go to escrow and during this time you will have the opportunity to have a building inspection done. Hiring a reputable building inspector (such as those from http://www.homeinspectionassoc-ma.com) is essential! With an investment as large as buying a piece of commercial real estate, the last thing you want after the deal closes is to find out that the property requires costly repairs. Hire an inspector who specializes in commercial property. If you find out that the building needs numerous expensive repairs, you can back out of the deal without penalty during the inspection period.Share