How to Buy a Commercial Property: An In-Depth Review
1. Understand your motivations for investing in commercial real estate.
Why do you want to invest in commercial real estate? It’s an important question to ask yourself before you start hunting for properties. Perhaps you’d like a larger property with the potential to appreciate and build equity over time. Maybe you’re looking to take advantage of tax benefits or scale your investment portfolio. Whatever your motivation, it’s helpful to identify your “why” before you invest. Knowing why you want to purchase commercial property can help guide you as you search for the right investment opportunity.
2. Assess your investment options.
If you want to invest in commercial real estate, it helps to understand the different types of commercial properties. For example, commercial properties may include:
- Apartment Buildings
- Office Buildings
- Retail Buildings
- Malls
- Warehouses
- Industrial Buildings
- Mixed-Use Buildings
3. Secure financing.
Before you find a commercial property, you wish to buy, it’s wise to line up your financing options in advance. Step one to securing commercial real estate financing to check your credit. Depending upon your lender and the type of loan you apply for, your business credit scores and reports could come into play. Some lenders may check your personal credit too.
4. Partner with the right team.
Buying commercial real estate involves a lot of moving parts. In other words, it can be complicated. Even experienced investors know that it’s important to surround themselves with the right team of experts to make sure their investment has the best chance of success.
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Work cited: Michelle Black, Business Credit, December 19, 2019
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