Are you thinking about purchasing a commercial property for the first time? Great idea! Research has shown that $85.25 billion worth of commercial real estate was constructed in 2019 in the U.S.
Buying commercial property has many advantages, including a profitable use of your time and money. But as a first-time invstor, you should know that purchasing commercial property is a huge responsibility, so doing your due diligence will go a long way.
Here are a few simple steps for how you can buy your first commercial property.
Ask Yourself Why You’re Investing
Buying commercial real estate is different from buying a residential property since it has straightforward pricing, higher investment costs, and greater returns.
But identifying your motivation to invest in commercial property is crucial since it’ll help you decide what you want to do with the property once you buy it. With a goal in mind, you can look for investment and redirect your efforts accordingly.
Deliberate Over Your Investing Options
When investing in commercial real estate, you should think over your options since the market is filled with varying choices.
From industrial complexes to retail shops, large apartments, and office buildings, you’ll find many estates that can be used for business purposes. To decide which type of commercial real estate you want to purchase, you should recall why you’re investing.
Secure Financing at the Earliest
You may be thinking of acquiring financing after you’ve decided what type of commercial property you should purchase, but that’s not the route you should be taking. Why?
For one thing, if you secure financing before you start looking for a property to buy, you’ll know what your budget is, allowing you to expedite a deal with more efficiency, given that you’ll have the required money in hand.
Connect with the Right Professionals
Since commercial real estate is all about networking with people, aligning with the right professionals will help you acquire the correct property type.
This can either be a commercial real estate agent with a focus on the type of transaction you’re looking to complete or an attorney who’s well-versed in the laws that govern the commercial real estate market. A certified personal accountant can also help you land a lucrative deal that’s just what you need to secure your future.
Do Your Due Diligence
Look for a property that’s in line with your goal but, at the same time, run the numbers and holistically evaluate the deal.
A deal may seem appealing on the surface but ask yourself whether the risks are worth the potential rewards you hope to receive or whether you can find a different property that would be more suitable to your needs and goals.
Ready to invest in hard money loans in the Big Apple and other areas? Global Capital Partners Fund offers commercial mortgage lending, development financing, construction financing, multi-family properties finance, and much more, with quick processing and simple loan applications! Get in touch with New York’s leading commercial lenders today!