Any kind of real estate that will be used to run a business or generate profits is considered commercial property. This can include empty buildings, buildings with businesses already in them, rental properties, and land which you plan to use for profit. Commercial property can be a lucrative investment if you take the time to do your research, find the best real estate, and use it wisely.
If you’re thinking about taking the leap into the world of commercial real estate ownership, here are some tips to help you make the right investment!
Start by identifying the needs and goals of your business.
If you don’t know what you want to accomplish with your property, you won’t be able to determine which properties on the market will best fulfill your needs. Before you even begin your search, sit down and answer some fundamental questions about your business and the characteristics of your ideal property. Here are a few questions to get you started:
- What are you planning to do with your property?
- What type of property will work best for your business? Retail shop? Office complex? Warehouse? Rental units?
- How much can you afford to put down? What can you afford in terms of maintenance and utility costs?
- What location will be ideal for your business?
Work with a team of experts to find the right property.
Especially if you’re new to commercial real estate investment, it’s important that you partner with other professionals to help evaluate properties and, eventually, acquire one. Look into hiring a commercial real estate agent, broker, inspector, appraiser, attorney, and possibly even an accountant. At this time, you’ll also want to start working with a financer—a bank, credit union, private mortgage company, etc.—to explore your financing options and determine exactly how much money you’ll have to work with.
Do your due diligence before closing the deal.
Real estate of any kind is a big investment, so it’s important that you do your “due diligence” before making anything official. This essentially means learning everything you can about the property and ensuring everything with your contract is in order before signing.
For a commercial property, you’ll want to order an ATLA (American Land Title Association) survey to give you history and detailed information on the property and its relevant surroundings. Then, you should run the numbers (this is where an accountant comes in handy) to analyze risk/reward potential. Finally, have a commercial real estate lawyer look over your deal before you sign to make sure everything is correct and fair to you.
At Smith & Co. Auction & Realty, we have commercial real estate agents ready and willing to work with you every step of the way to find your perfect commercial property in Woodward, Oklahoma. Looking to streamline your sale? We also hold commercial real estate auctions with incredible properties for amazing deals.
Contact our team today to discuss your commercial real estate needs!