3 Mistakes To Avoid When Buying Commercial Property
Posted on: 16 December 2015
Buying a commercial property is a major investment. You aren't investing in something for the here and now, you are investing in something that you are going to use for quite some time. Because of this, you want to make sure you get what you need for your business. Don't just jump into the first nice building you can find. Spend time going through everything and making sure you know the specifics of the property in question before signing any paperwork. To help make sure you get what you need in your commercial property, here are three mistakes you want to avoid.
Not inspecting the property before you close on it.
Oftentimes, individuals don't have the property inspected before they actually close on it. Sure, you might have walked through it when you looked at it, but there are any number of things that could go wrong during the escrow and closing process. You don't want to walk into the property and find that the pipes burst or the furnace stopped working. Even though you might not think you need to inspect the property again, it is in your best interest to do so right before signing the final paperwork.
Not working with an experienced lender.
You can save yourself a lot of stress and hassle by working with a licensed commercial lender. You don't want to work with just anyone. You need someone who understands the terms of the loan and ensures everything stays true to what you were told in the beginning. Commercial lenders might cost a little more, but they are well worth the added expense.
Not factoring in the amount of reserves needed.
During your ownership of the property, you are sure to have to make repairs to something. Whether it be a roof, the furnace, water heater or drywall, you need to have enough money on hand to pay for those repairs. By having a solid amount of money in reserve to account for those repairs, you can eliminate a lot of frustration when something does go wrong. Having a reserve account also helps when you want to do any renovations or improvements to the property.
By considering the three things above, you can eliminate a lot of the stress and frustration of owning a piece of commercial property. If you ever have any questions or concerns, make sure to talk to the commercial property agent like Realty Executives.
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