Commercial real estate has proven to be a very profitable venture for any investor. It's a massive market in the United States yielding over $8.5 Billion in commercial property sales each year! Many of the wealthiest real estate investors own commercial properties and are always active within the market. Within this article, we'll take a look at a few of the key factors to consider when buying a commercial property.
- Take Your Time: The first tip sounds overly simple, however, its a critical thing to remember when making such a huge financial decision. It's easy to get caught up in the excitement of the purchase and potential income. When viewing properties, make sure you take your time, obtain trusted feedback, and complete your financial due diligence. When buying your commercial property, simply taking your time could help you land the investment that will position you to make a killing for many years.
- Analyze the Risk: You'll want to be sure to carefully consider the risks with any commercial property. A buyer must take into account market trends, the geographical location, the building’s condition, and overall rental or repair history to accurately gauge the risk involved in buying the property. It's also wise for any buyer to forecast for absorbing vacancy periods of a few months at a time within the property.
- Minimize Liability: Owners of a commercial property obviously want to assure they do all they can to minimize liability. A great way to help minimize legal issues is to ask the right questions upfront. The following questions are among the top inquires you'll want to have detailed answers to. Does the commercial property have any legal protection? What is the legal history of the property you’re acquiring? Are your current investments separate? (Assuring that one lawsuit doesn’t impede upon your other investments).