Ten steps to know before you Buy commercial property
Ownership of a real estate for use in a business, trade or for the production of income called commercial real estate and categorizes buyer as an Investor
Think of what types of commercial property you interested in. Retail, Office, Ware house, Industrial, Multi-unit apartment or mixed use.
Do you want to invest to get rental income or to established your own business
Check out your budget before you decide to buy Commercial real estate Find out with lending institute if they give loan for commercial property and if so how much down payment require Usually commercial loan need more down payment than residential loan and has higher interest rate
Depending upon your requirement and fitting to your budget decide which town location and area. Ask your commercial broker/agent to help find your need
Do due diligence before you buy commercial property. Title, survey, zoning, building and land inspection, existing leases etc. etc.
Analyze the profit gain as well as risk in buying commercial real estate
Get familiarize with NOI, Profit and Loss statement, Balance sheet, Cash flow, Cap rate etc. to evaluate the price of commercial property
Higher a real estate attorney while making an offer and preparing a purchase contract
Get help of your commercial real estate broker/agent with whom you are comfortable to work with.