Owning commercial real estate is a dream for many business owners and investors. It’s an opportunity to purchase something that can appreciate greatly in value and provide businesses with the location they need to do great things. The decision to purchase commercial property for sale or office space real estate should not be rushed. You need to make sure you are prepared for the risks and work it will require to be successful. Working with esteemed brokers like those at the Rakow Group is one way to help get yourself prepared and make sure that the deal is a success. Below, we will discuss some of the necessary steps to take for owning commercial real estate.
Determine Your Needs
Prior to starting a search for commercial property for sale, it’s important to ask yourself what you need. Simply stating that you want to buy commercial real estate isn’t going to cut it. Figure out what your budget is, locate an area that interests you, and determine what your ultimate end goal is for the commercial property. It’s also very important to decide what your risk tolerance level is.
Hire a Broker
It’s possible to handle a commercial real estate purchase on your own, but it will help a great deal if you decide to hire a professional broker. Not only do brokers have lots of resources and knowledge, but they can also help negotiate a deal in your favor.
Visit Lots of Different Properties
When you first start thinking about purchasing commercial real estate, you might feel overwhelmed at the sheer amount of properties that are available for you to choose from. It can be tough to narrow things down, which is why we suggest visiting lots of different properties. That way you can decide what works best for you and figure out the ideal location for your purchase.
Finance the Deal
This goes without saying but figuring out the financing for a deal is essential. Make sure you are considering things like property taxes and depreciation. Create a budget that makes sense and don’t neglect thinking about the future as well.
Make the Offer
It helps to have a broker and a lawyer to help out with this step. After you have found the right commercial property for sale and determined your financing, you might be ready to make an offer. This basically consists of signing a LOI, or Letter of Intent, and delivering it to the property owner.