Making the decision to buy commercial real estate is easy; the part where it’s time to execute the plan is when the going’s going to get tough. As a business owner, you are probably really awesome at what you do and there are very few things you consider yourself to not be an expert in. Is buying commercial real estate one of them? If so, you’ve come to the right place.
Admittedly, buying commercial property is a costly undertaking – something investors should not take lightly. As a business owner, it is crucial to exercise due diligence in all facets and phases of the project. After all, there are lots of different issues that can arise along the way, namely:
•Construction issues and unexpected costs
•Safety and environmental lawsuits
As you can see, there are many things that can go wrong if you are not vigilant every step of the way. Here’s a look at five major points to pay special attention to when acquiring commercial real estate.
1.The local real estate market – local markets have varying laws covering tax rates, land, and environmental issues.
2.Finances – everything from the budget to the approved loan amount need to be in order before anything else. That means going through lenders and checking out different financing options before choosing the most suitable arrangement.
3.Taxes – an accountant intimately familiar with the ins and outs of tax implications in real estate purchases is going to be extremely helpful in this situation.
4.The layout – the right layout can tremendously improve a building’s capacity.
5.The builders – established builders that produce quality work and have a good reputation need to be sought out for this sort of project to work. Conduct a credit check for a look into the builder’s financial history, if necessary to avoid future problems with money.
Not mentioned in the list, but absolutely vital to any commercial property acquisition is the business real estate broker. Someone with expertise in commercial real estate can help expedite the search for a suitable property and provide valuable advice and insight into the purchase.