While your answer will separate the buyers into different camps, the advice to both is pretty much the same. Proceed with caution. Be as sure as you can be about the chances of the occupiers doing well. Rely on expert opinion.
Again we can differentiate between a newbie and an experienced operator. If you are seeking to buy commercial real estate to house your brand new business, you need to be sure you don’t buy too big, expand too quickly and pay too much. Mind you that applies to almost everyone in business.
But if you already have a business and wish to relocate or even expand, again be aware of the economic times and don’t over-extend yourself and your business. Get more informations of purchase commercial real estate
Buying a commercial property worth a great deal of money can be a risky venture. What if you can’t find a tenant or tenants? Of course if the property is already occupied with strong leases then you are on far more solid ground. But buying the property requires detailed and informative research with, if necessary, the help of experts.
-Your expert team
The local chamber of commerce, your lawyer, accountant and even the state’s economic advisers are all capable of helping you make the right decision. Some of the advice will be free, some will cost you. But if it helps you make the right decision then it will be time and money well spent. Rely on those who are experts in the areas you are not.
It’s the same deal, well almost, for someone buying a one bedroom apartment. You have to get the finances right. Foreclosure applies equally to commercial real estate as it does to residential properties. This is just one area where your accountant is essential but knowing your banker and getting good advice from your lending authority is likewise invaluable. One of the main causes of the sub-prime mortgage meltdown was greed on behalf of certain lenders. Borrow wisely from reputable sources.
In some ways it’s like owning or renting your apartment. If something goes wrong with the building, as the owner, you have to fix it and pay for the repairs. As a tenant, that’s not your responsibility. Be aware of this as you consider buying. The operating costs of a commercial building are not cheap. But then the lease income can be substantial. Get advice from those who know before you take the plunge.
One of the major factors in any commercial real estate purchase is you. It’s largely about your credit worthiness, your business reputation and your ability to know what you want. When you are strong and reliable, your business will often follow suit.