Whether you are looking to invest in a commercial property for a business of your own or whether you are hoping to find tenants to make use of your chosen commercial property, the world of commercial real estate can be somewhat overwhelming at first. Slightly concerned that you might not make the right decisions right from the start? Here are four secrets to going about it the correct way.
Find the right lender
There are countless options available to prospective commercial property investors when it comes to sourcing funding. However, not all lenders are created equal! Therefore, do your research into the different alternatives on the table instead of simply running to the bank and filling in a loan application.
For instance, you might have better luck and strike a better deal by selecting local private lenders that promise you numerous benefits, like closing within days of submitting your application, not having to pay any upfront fees, and not having to supply any income verification. These private lenders often specialize in commercial real estate loans, bridge loans, fix and flip loans, new construction loans, and more.
Think carefully about location
Just like you would not want to invest in a new home situated in a rundown area, you certainly would not want to invest in a cheap commercial property located in an area with a lack of growth potential. Therefore, be sure to look into the types of businesses that tend to fare well in your chosen location, as well as people’s general perception of the area before making any long-term investment decisions.
It makes sense to invest in a commercial property that always has a healthy flow of traffic and is easily visible to both passersby and individuals in vehicles. Speaking of vehicles, it is crucial to invest in a commercial property with ample parking space; otherwise, you risk losing out on customers.
Finally, be sure to take the time to investigate the unique spending potential of the people who live and work in the area and the people who tend to visit it regularly.
Know what you want
Having a list of ‘must-haves and ‘nice-to-haves when viewing potential commercial properties can make it easier for you to make better investment decisions. For example, it is always a good idea to know how big you would like the property to be and what features should already be included – such as a small warehouse for effortless storage. Also, remember that adding on or renovating after you have made a purchase might come with a much heftier price tag than your budget will allow.
There is no escaping the fact that investing in a commercial property can be costly, so it is important to take your time when making decisions. Do not feel as though you have to jump at the first property that you find in a decent location or at an affordable price. Instead, do your homework, consult with the various experts available to you, and go with your instincts. Do all of this, and you cannot go wrong.