The key to purchasing commercial property is knowing yourself, your situation, and what you’re looking for. Here are 3 steps to buying commercial property….
1. Visit and consider many properties
Consider and tour many different properties.
Figure out what works and what doesn’t about each of them for you. Consider the most important things for each one including price, location, condition, and allowed uses.
The importance of location can’t be overemphasized.
2. Find the experts you’ll need
Buying commercial real estate is often a complex process. You’ll likely need to hire experts to help with some of the steps. Which and how many experts depends largely on the type of property you’re purchasing.
At the very least, you’ll need to hire an accountant, commercial real estate lawyer, commercial realtor, and a mortgage broker.
If the property is more complicated, you could need other specialists like tax experts, accountants, lawyers, notaries, appraisers, engineers, and/or environmental specialists.
There are some things you can do on your own (through research) but there’s many that are better to hire an expert for.
3. Figure out your financing
If you’re like most people, you’ll need to get some financing help to be able to purchase the property.
What type of banks, credit unions or other home mortgage company could you use? What kind of credit do you have and what kind of interest rate could they give you? Answering those questions is the first part of the financing process.
If traditional financing methods don’t serve you so well, could you try a more creative method for financing/purchasing the property?
Would the owner/seller be willing to help with financing? Read up on things like seller carry back, subject-to, second mortgages, and lease options.
There’s definitely more than one way to finance a commercial real estate purchase.
How we can help you
At Craig Tracey Lending, we specialise in helping people with finance to purchase commercial property.
We are different to most Brokers so click the link below to find out why….