If you are trying to choose between two desirable commercial purchases, the larger one may be the better choice. Finding adequate financing on a piece of property takes time and patience. Just think about it as the more you buy the lower you are paying per unit, so you save more in the end. Be calm and patient when looking at commercial real estate. Do not rush into making quick real estate decisions. If you buy a property that doesn’t meet your needs, you’ll sorely regret it. It could take as long as a year to find the right investment in your market.
Your new space may need improvements before you can occupy it. For example, you might neat to repaint or purchase new furniture. The renovation project can get larger and could consist of knocking down, moving or building walls to make the floor plan usable. Be sure to negotiate prior to signing any contract who pays for any improvements; it may be the case that your landlord, if you have one, will contribute a portion of any costs.
Try to get a presence online prior to jumping into the market. Create a profile on LinkedIn or put up a personal web site. Consider search engine optimization for any website you build so it comes up higher in online searches. You want people to find the information you provide just by searching your name.
Before buying, make sure that you consult a tax adviser for assistance. You adviser can help you calculate the overall cost you will incur in making the purchase, and what portion of the income deriving from the property will be taxable. By taking your adviser’s advice, you may be able to find a location where the taxes are less.
Advertise your property for sale locally and outside your region. Many people target their advertising to local buyers only, thinking that those buyers are their market. If your property is well-priced, advertising outside of your direct area will enable you to tap into a large pool of private investors that would be interested in your property.
Be cautious of signing standard lease forms when leasing commercial real estate. Some real estate firms will add questionable requirements to these documents, and because of the length of these leases such additions are often overlooked. Thoroughly read the lease prior to signing to ensure there will be no surprises later. Be aware that there could be drastic inflation in the time after you invest in commercial real estate. Years ago, it was common for leases to protect people from inflation via adjustments made through Consumer Price Index. If you do not plan for inflation or cover it in your contract, then you are at significant risk.