CRE-Finance LLC Shares How to Purchase Commercial Real Estate
Online, April 23, 2014 (Newswire.com) - Investing in commercial real estate is as much attractive as it is complex and riskier. For starters, it requires a large initial investment, not to mention the repairs and maintenance costs associated with the space once you have purchased it. Nevertheless, it brings in higher returns considering the time and effort it requires when setting about to purchase commercial property. Here are a few tips from Todd Tretsky of CRE-Finance LLC that you should keep in mind, and which could help you when you set about to purchase commercial real estate.
Location
The most important thing when choosing a commercial property, is considering the location. It is crucial to pay attention to the surrounding area and growth prospects of that area. Only invest in commercial property in the location where you see an upward growth trend. Factors, which will influence the success of your investment, include neighborhood demographics, socioeconomic status, and the age of residents. By comparing the growth of your chosen location and the growth in similar areas, will give you an idea about the expected changes and likelihood of your investments' success in the next few years.
Location also effects customer experience and revenue base. Before investing, consider any zoning changes, such as increased density and infrastructure changes can affect access and parking. Also consider a property's allowable use whether it will meet your current and future needs. You must also evaluate the location in terms of the kind of business you plan to do with purchasing the property. If your business services are targeted to a well off clientele you may want to consider purchasing property in an affluent or close by area and vice versa
Safety and Health Control
When you are looking to purchase commercial property, consider its past use. Industrial properties and those, which are older usually, sit on polluted land. Environmental regulations have become stringent now more than ever and the costs associated with cleanup can be staggering.
As the buyer of commercial property, it is crucial to review environmental reports on the property as cleanup costs may need to be negotiated into the final purchase price. It is also important to find out whether pest control is up to date. Evaluate the pest control policies of the area you are considering to purchase property in and make sure all health and safety standards are met.
Patience
Purchasing a commercial property may take up a great deal of your time and effort. You must stay patient throughout this process. Purchasing property is only half the effort, keep in mind that you will have to make amends and repair to the property, which may again cost you and take more time until your property is ready to earn financial gains from.
Also, one important thing to look out for, is the kind of broker you will work with when purchasing property. When you choose a broker, consider their years in the real estate market and experience. Verify their reputation and the number of deals they have been successful in dealing with the kind of property you are interested in purchasing.
If you have any questions regarding commercial real estate or are seeking financing, then contact Rich or Todd at 855-515-5585 or visit us at www.cre-finance.com