It’s good to know how to buy commercial real estate. You might need to do this for your business, for example. Or perhaps you’d like to buy it as an investment. Whatever the reason, you need to make sure that the decision is informed and beneficial.
Know your main objective
You might come across a commercial property for sale at a great price. You want to take advantage of the opportunity. So you’d like to act on it right away. Just make sure though to determine what exactly you plan to do with it.
Do you plan to use the property as an investment? Will the property be used primarily for rental income? Or do you plan to start or set up a business in that property? This main objective will be the basis for many of your other decisions.
Do your research
If you’re looking for property for an office, gather relevant information. Determine first where the business needs to be located. Then get an idea of how much properties are going for in that area. Information can be gathered both online and offline.
You might want to talk to property brokers who handle the area. They might be able to point you to a property which offers good value. If they can do this, then they’ve earned their commission. You can also talk to other people in the area, to look for more information.
Make sure the transaction is clear
You will want to know if there is anything about the transaction which could hold it back. Is the property for sale by someone with a good title to it? Is there any ongoing litigation involving the property? If the property currently has tenants, will there be problems with moving them out?
You’ll also want to avoid possible problems with the property itself. Is the property in good shape or are there substantial problems under the surface? How are the plumbing, electrical and other systems? Have utility bills been paid? Are there limits on how much renovation work you can do with the property?
Look for motivated sellers
If you’re looking for property to invest in, seek out motivated sellers. These are people who are in a hurry to unload their property. Perhaps they need money for something right away. Or maybe they have grown tired of owning the property for some reason.
These types of sellers are good to find because they’re more willing to offer discounts. The key is in finding them. You can do this by checking ads on websites and in newspapers. You can also offer people commissions if they find such properties for you.
Buying commercial real estate can be a complicated matter. So you need to arm yourself with knowledge and some help. Keep this advice in mind while you’re looking for properties. It could prove useful to you.