Buying commercial real estate is more challenging than buying a residential property. Commercial properties need a fair amount of research before you actually invest in them. If you are looking for investing in a good commercial property, a few factors should be accounted for, before foraying into the field. The first move is to find a reliable and experienced agent, for example if you need commercial real estate a Geelong, you must contact Geelong Commercial Real Estate, as Neville Richards, their agent can help you with the best commercial property in that area.
Here are some important factors to look into, when investing in commercial real estate:
This is one of the common factors between commercial and residential properties. For the former, however, it is important as commercial properties must be easily accessible or located centrally for drawing in the maximum number of customers to them. Commercial properties that are located near residential places; tend to be more popular and preferred.
- Accessing risk factors in commercial real estate
Assessment of risk in commercial real estate needs huge consideration. Remember no two commercial properties are similar.
As being an investor, a lot of due diligence goes into underwriting the condition of the property and tenants.
- Building condition
As you know the building classification is pretty useful, you even want to consider the building’s current condition as well. What type of wear and tear had been in the past few years and what was it used for previously?
Many properties come with some type of hidden price, so you would want to know about all such things ahead of time. Before purchasing the commercial property, get it thoroughly inspected, this would help you to uncover any potential issues, like asbestos or mold.
- Financing options
This is another very crucial factor, as you need to find the best and the right financing option to buy the property. The kind of financing you could secure entirely depends on your business and personal credit scores, the kind of property you want to buy, and your lender as well.
It is a great idea to get it pre-approved before you make an offer for buying the building. Your accountant could help you figure out as to what you could afford reasonably, based on your cash flow prediction.
- Terms of the final deal
Once you have presented your offer and reached an agreement with the seller, it is better to take a little time for reviewing the various terms of the deal. You would want to even check the paperwork offered by the seller. This would give you the opportunity to catch the seller, if there are any issues in regard to the property and thus avoid making the final decision that can hurt your business in the near future.
If you are looking for the best options to buy commercial real estate a Geelong, contact Geelong Commercial Real Estate, as Neville Richards, is the perfect agent to help you find the right property for your unique requirement. If you need any further information & assistance, you can contact them or even visit their well-curated website.