Investing in commercial real estate is a proven and reliable way to put your money to hard work. Commercial real estate is a property that is rented out for people to use as a business location or a residential building. It can include a high-rise building, a strip mall location, or a series of offices.
If you are curious about the steps of purchasing commercial real estate for sale, then you’ve come to the right place. Here are 7 steps to help you if you’re looking to purchase commercial real estate. Click here.
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Know your motivations
The first step to purchasing commercial real estate is to know why you are interested in purchasing it in the first place. Whether you are looking to increase your in-flow of cash, want to simply purchase it so the property appreciates over time, or want to take advantage of the many tax benefits offered to owners, there is no right or wrong answer here.
Just be sure to identify the “why” before you seriously start looking for places to invest in.
Analyze your options
There are many options of commercial real estate available to you. Make sure to check them all out before you make your final decision. Some of the most popular include: apartment buildings, offices, retail buildings, malls, industrial buildings, warehouses and mixed-use buildings.
Get your financing
Once you have identified the type of building you want to purchase, you will have to secure the financing from a bank to get the deal done. Just like when you are buying a home, you will want to shop for loans before you shop for properties. If you find a property before you find a loan, you may be tempted to take out a loan that you cannot afford, which can lead to some serious financial complications further down the line.
Find the right property
Once you have secured financing, it is time for you to look for the right commercial property for you. You are going to want to make sure that the places you identify meet your specific criteria. Pay attention to crucial factors such as square footage and location.
Also Read: Why A Business Needs Commercial Insurance?
Do your research
A commercial property that looks great on paper may not be all it seems. There are a lot of questions that you will want to answer before you complete a payment. Some important questions to ask include: what has the property been used for in the past?; Is it appropriately zoned?; Can you request a change in zoning?; How much is rent in the area?; What are property taxes like?; and is the building in need of any serious repairs?
Make an offer and close the deal
Of course, the final step in purchasing a commercial property is – well – purchasing it. Make sure that you come to a price that you are comfortable with. It is smart to have a team of legal and financial advisors to assist you throughout this process to make sure that the purchase you are making is a fantastic one.