If you have ever considered what it’s like to buy a commercial property then you might have a few misconceptions of what it’s really like. There are so many things about commercial property investment that people get incorrect and it can dissuade them from making a great investment. Keep reading to find out some of the most common things people get wrong about commercial property.
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1. It Will End Up Being Too Expensive
Buying commercial property is very similar to buying a home and many people don’t think they can qualify for the type of loans needed to buy the property. If you own your home and you have great credit then you’re already halfway to getting the right finances in place to invest in commercial property. Most banks will lend you the funds if you have a good amount for your down payment and you can show the bank that you are able to successfully manage and own the property but each bank is different so make sure you ask a financial expert what you need to get started.
There are also loans you can qualify for if this is your first commercial property and some areas also offer better rates due to the area the property is located in. Some towns have areas that they are looking to improve on and commercial properties are usually at a great price there. The price of all commercial property varies widely and depends on the building, area and possible uses so look at prices of other properties in the area to get a feel of what’s average.
2. It’s Hard To Find
There are so many people selling commercial property if you know where to look. Sometimes these properties aren’t; advertised on the regular market and a real estate agent can help you navigate the best places to start looking. A real estate agent can also have word-of-mouth connections to some sellers in the area and they might be able to offer you a property before it even reaches the market.</p
Some real estate agents specialize in buying or selling commercial property and they are the best choice for the job. They know what to look for and they will be able to find you the perfect space for a great price. These agents also have the knowledge of larger structures, permits, and zoning laws for the area, and an agent who has only sold homes might not be able to help you much in that area.
3. It’s Tricky To Sell
Some people shy away from investing in commercial property because they are worried that they won’t be able to sell it in the future. With many businesses moving online or offering work-from-home options for their workers, it can be easy to see why people would be wary of commercial property. Luckily, buyers have been transforming their commercial property into amazing spaces that employees love along with new businesses that do very well so you can have confidence in the fact that selling your commercial property will not be an issue.
There is always a great market for selling your commercial property and any improvements you make will help add to the value. If you’re looking for some tips on selling your commercial property for the best price possible then click here for a great article to help you out.
4. The Properties Need Too Much Work
An empty office building might look like a mountain of work for some people but others see it as the bare bones to make something amazing. It might look like you will need to spend years of time or thousands of dollars fixing up your property but most commercial properties come free of damage and issues. Even if a commercial property is foreclosed on, it usually remains in the same condition it was so it will only take a quick cleaning to have it back to normal.
Hiring a commercial building inspector is the quickest way to find out what the property will need before you decide to buy it. These experts are able to look for issues that come with bigger buildings while a regular home inspector might end up missing major problems. Getting an inspector that has experience with larger properties is the best way to find out everything you need to know about the property before you buy.
5. It’s Too Difficult To Manage Them
Managing a rental property is one thing but managing a commercial property is very different. You are responsible for quite a few extra things and you have to worry about a large building for people’s safety and comfort instead of just a few people in a rental property. Building managers are a great way to take the burden off of yourself and let someone else handle all of the smaller issues.
A building manager (or property manager) will be the person in between you and any problems with your building and if you hire a good one, you won’t need to worry about anything at all. They will likely handle all of the smaller repairs, collecting rent, maintaining the building, and keeping the building looking great. You and your building manager will need to work out a fee based on what requirements you have but it will be worth every penny to know that your building is taken care of.
Commercial property shouldn’t be something that you are scared of and as long as you do your research, you’ll be able to find a property that suits your needs. Selling your commercial property will be easy after you have purchased it yourself and they make great turnaround investments. Talk to a local real estate expert that specializes in commercial property and you will have a great chance of finding the right one for you.
