As an entrepreneur, you won’t make a lot of decisions that are as important as buying commercial real estate. If you make the right call, then it will also be one of the most profitable decisions you’ve ever made. Here are 6 steps that you’ll need to take if you want to acquire commercial real estate.
Understanding What You Need
Before you even start thinking about looking at properties, you will need to understand what you need. The first thing that you should determine is what type of property you are looking for and why you want to purchase it. Once you decide on the purpose of the property, it’s time to choose the location. If you want to buy office spaces for your company or to rent them out, you will need to make sure that the location is solid.
On the other hand, if you’re planning on buying something like a warehouse, then the location isn’t that important. After finding the location, decide on whether you want to buy or lease the property. You should also be aware of your current financial situation. More specifically, find out whether you can purchase the place on your own or if you’ll need to get in touch with a lender. Nowadays, there are great options for commercial mortgages available, so it shouldn’t be hard for you to find the right option for you.
It’s crucial that you determine how much time you can commit to the property you’re buying, as well as how much work you will put into it.
Finding the Right Property
Now that you know exactly what you need, it’s time to find the perfect property for you. First of all, you should consider the location. After finding the right location, it’s time to do some research on the legal issues you may face. It doesn’t matter if you plan on making an industrial warehouse or commercial office space, you will need to know that local zoning will allow your business.
The next step would be to inspect the property and check for any potential liability or environment issues. When you become interested in a certain property, you should check how much it costs. Determine whether you have the money to pay for it completely, if you should partner up with someone and split the cost, or if you should take out a loan. Keep in mind that there are a lot of great commercial real estate loan companies, so it’s not that hard to get one.
Visiting Many Different Properties
Just because you found a property that you like doesn’t mean that you should immediately buy it. In order to ensure that you’re making the right move, you will need to consider a lot of different options. Even if you’ve found a very great property, it doesn’t mean that there isn’t something out there.
Assembling a Team of Experts
Surrounding yourself with a team of experts will definitely help you make the right decision when purchasing property. Some of the specialists that you should have on your team include a commercial real estate agent, a mortgage broker, a lawyer, and an accountant. In some cases, you may even need to hire notaries, engineers, and tax experts.
Making an Offer
If you and the team you’ve assembled agree that you found the right property for you, it’s time to make an offer. However, it’s worth mentioning that you shouldn’t do this unless your lawyer has reviewed it first.
This is the last step to owning your own commercial real estate. Keep in mind that you will need to order an American Land Title Association survey to provide important information about the property. The money will change hands during this step. Know that you and the seller will need to find an escrow officer who will oversee the transaction. While the money is in escrow, you should double-check whether the documentation about the property is correct.