Purchasing commercial property can be daunting, but the more you understand about the process, the more likely you are to have a good experience and make a profit. When done correctly, purchasing commercial property can give you a big return on your original investment. Whether you’re thinking about buying an office building, shopping center, or apartment complex, there are four basic steps you should take.
Deciding what type of property you want is the very first step you should take when determining whether or not you really want to purchase commercial property. What do you want to do with the property? Rent it out? Use it for your own business? Build equity? Once you decide what type of property you want and where your ideal location is, you can narrow your search options significantly.
Once you find a property you like, don’t be pressured into purchasing it without having it inspected first. This is important whether the building on the property was built 50 years ago or last year. The last thing you want is to purchase a property, then find out it will cost you thousands of dollars to repair problems you didn’t know were there. Inspection reports are thorough and can help determine the offer price.
Title agencies protect buyers from encountering any problems when the title for a piece of property is transferred to them. When you purchase a property from a seller, you’re assuming the title to the property is just as the seller promised. By hiring a title agency and purchasing title insurance, you’re protecting yourself from a future title disagreement or property liens from building contractors.
Before purchasing a piece of property, give yourself plenty of time to examine all documents associated with the transaction. If possible, give yourself around 30 days to review all maintenance contracts, title documents, insurance policies, and existing leases with tenants before you sign any contracts. This step will protect you from any unexpected obligations or costs associated with the property.