Unless you are aware of where to look, finding the best kind of commercial property on which to begin a business can be tricky. Do some research on your own to learn about the commercial real estate market in your area.
It is a far lengthier, and more complicated, process to purchase a commercial property than a residential one. Although commercial property purchases take longer you will normally receive a higher return on the investment.
You should consult with a reputable lawyer before closing on any commercial real estate property transaction. It is best to always be protected by a trustworthy, knowledgeable legal professional who can help you to resolve any issues that may arise.
Buying a larger property is great for a variety of reasons. More units equals more money in your pocket. Serious investors will not be interested by a building that has less than a dozen units.
Secure appropriate financing before going forward. Loans for commercial properties are not the same as home loans. In many aspects, they are in fact superior. Commercial loans require a larger down payment, but you can avoid personal liability if the deal goes bad, and banks are more relaxed about allowing you to borrow some of your down payment money from a friend or partner.
Dual Agency
Carefully peruse the disclosure statements issued by the real estate agency you intend to hire. Keep an eye out for dual agencies. Dual agency means the real estate company is representing both the seller and the buyer in a property transaction. Or, for short, the agent is looking out for both parties’ interests. Whenever dual agency is part of a transaction, it must be disclosed to both parties of the transaction. Both sides must also agree to the dual agency.
Consider the good tax benefits if you are thinking about purchasing commercial properties for investment purposes. Speak to a tax professional to ensure you understand how the depreciation and interest will influence your situation positively. Investors often get ‘phantom income’ this is income that does not have tax attached. Before you make any investments, be sure you are aware of this kind of investing.
You should apply the tips you have just read when selling or buying property. The information in this article will help you set up strategies for staying on top of all the information you need to monitor and hopefully help you avoid those costly mistakes.