Whether you are considering a commercial real estate purchase for the first time, or if you’re a seasoned expert in the field, the process for investing in real estate is the same: finding an ideal property has everything to do with the time and effort spent researching about potential properties. The right investment can grow businesses and pay you back in more ways than you can imagine. Here are 5 time-tested tips for investing in commercial real estate to help you get started.
- Take Your Time – Often, commercial deals take longer to complete than residential purchases. Be prepared to be patient from the beginning so that you make sound decisions that will reap long term benefits.
- Learn New Formulas – Buying commercial investments involves terms such as net operating income and cap rates. Use your agent to help you get familiar with the terms and deals in the area.
- Relationships are Vital – Having solid relationships with investors and lenders are crucial when buying commercial property. Many properties are sold without being listed first, so having connections to let you know beforehand will be extremely beneficial.
- Find Good Financing in Advance – Commercial loans are usually much larger than residential loans, so in most cases, down payments must be greater (another great reason to go in with a partner). Fortunately, however there is often no personal liability if something goes wrong.
- Know Who To Ask – Use an agent who has experience with commercial properties. Questions involving environmental regulations and contract details can get out of hand without someone to point you in the right direction.
Source: NAI Miami Blog
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