When you are looking to buy a new commercial property – whether it's the latest in an ever-growing portfolio or your first purchase – there are a lot of factors to consider, all of which go into determining whether you find as much success as you can. This is a complicated process where you have a number of decisions to make, and at every turn, you can make either a right or wrong choice.
With that in mind, it's important to think about the big picture and consider the following do's and don'ts as you proceed with the purchasing process:
You need to craft a strategy for any kind of commercial real estate purchase, crunching all the numbers and coming up with a plan to pave the way for your long-term success, according to Smart Company. That may be particularly important when you're buying for the first time, because you are effectively starting from scratch in this money-making venture. However, even when you're just building out your portfolio, you need to carefully examine how a new purchase plays into your big picture.
When you're buying a new property, you may be anxious to get it under your control and make it part of your small empire. However, you do not want to get into a situation where you are bidding against other would-be buyers and end up getting the property – but at an outsized price that makes it no longer a worthwhile investment. Keep everything cool, calm and collected throughout the bidding process.
The more you can do to educate yourself about your potential property's history and all its component parts, the better off you will be when making the ultimate decision of whether to buy it, according to R.L. Jones. Diligent research may turn up information that either makes it an even more impressive investment, or gives you pause. Before you even make an offer, you should know everything you can about the building and the land it's built on.
While it's certainly a good idea to accentuate the positive when you're taking the next step in commercial real estate investment, you can't ignore the potential for downturns. Tenant disputes, vacancies that last longer than is ideal, repairs and more are all part of the game, and you need to have contingency plans (and probably money set aside) to help you weather the various storms you may encounter.
Even if you have plenty of experience in buying commercial properties, it's always a good idea to have other people look over your purchase plans and give you their expert opinion on how you should proceed, according to Gulati Law. There may be many areas of a property purchase you need to consider but just don't have the expertise for, so bringing in lawyers, real estate professionals and others to help you examine your options is always a good idea. Simply put, this is the kind of large decision where you can't afford to leave any details overlooked.
At Ray White Surfer's Paradise, we've helped commercial real estate buyers of all descriptions close deals in full confidence that they're making the right decision. We can bring that experience to bear for you as well, helping you find the perfect property to start or expand your portfolio. Get in touch with us today to learn more.