If you are looking to buy commercial real estate for the first time, then it is crucial to educate yourself on how to maximize the value you get for your money. Countless businesses fail because they have been harmed by a poor decision early on and making a poor property decision can see you in a mess of debt and one that you can’t sell.
The following 10 tips will help you decide what commercial property to buy. Don’t make a poor decision, or your decision will make you poor.
1. Only fools rush in
It is unquestionably thrilling to make the first steps towards making your business dreams come true. However, would you sooner have them come true briefly, vaguely and quickly, or gradually, firmly and permanently? If it is the first, then fine, buy the first place you see. If the second, then keep reading.
2. Admit that you do not really know what you are doing
Because you don’t, not to the extent that an expert would. TV and the bookshops are filled with the advice of people who’ve made millions from property decisions, who know the market, recognize the pitfalls and have the benefit of years of experience. Seek advice from experts in the field.
3. Make a plan and stick to it.
There are always limitations to what you can make from your business, and the plans can go awry. From the very beginning, make sure you’re on track with the numbers and do not let idealism interfere. The figures involved are not just numbers on a screen? they’re your future, so don’t play around with them.
4. Get out there and do some physical work.
Check out the area in which you’re looking to invest? what is nearby, what are other people paying for property in the locality? Speak to traders in the area. Ask them if they could choose to move, would they? How much did they pay for their spot?
5. Three simple words. Supply. And. Demand
You might have grand plans for your project, but if someone else in the suburb who has the same plans a few years back then they’ve got a massive advantage. Is there a demand for what you are supplying? If so, go for gold. If not, keep your powder dry.
6. Don’t be easily frightened
Yes, it’s important to do the leg work, and the paperwork, and all the other work as well. But remember, while you’re sorting out the finer details, remember that a project requires final action. Don’t miss out on a great deal because there’s some small detail you haven’t got finalized. A bit of multi-tasking will allow you to get it fixed.
7. Get your face out there
People will remember the guy who came up and spoke to them, who shook their hand and showed an interest. So, if they get wind of a good deal floating around they may put two and two together and get you.
8. Don’t get tunnel vision
The deal may be close to completion and suddenly a complication shows up? something the vendor had kept hidden. The temptation to just shrug and sign may be going at you but ask yourself why he kept quiet before doing anything silly.
9. Look for a motivated seller
It may cause you some moral problems, but sometimes people are selling up and moving out due to circumstances beyond their control. This drives down the price of the property. Don’t feel bad about being a shark, realize that there are several people out there who’ll screw the guy even worse. You can be sympathetic and still get the deal done. In fact, showing understanding can put you at the head of the queue
10. Good luck!
Let’s face it, luck always plays a part in business success? when you get a break just make sure to maximize it!