Starting your own business and purchasing your office is a very exciting time but you should be careful when purchasing commercial real estate because it could result in the loss of a large amount of money if it is not done in a proper manner. These are some tips to consider while buying commercial real-estate.
- Stability Of Your Business
This can be defined as a monetary or as a steady business. Determine whether you really need to buy/lease a commercial building , if you can run your business with one person or if you can afford to hire more staff. Maybe you have 2 or 3 people on the staff and need to buy/lease that first business front. Choosing a building that fits your requirements and budget can be challenging. However, being financially stable and having a steady monthly income to cover expenses and operating costs is vastly crucial to be sustainable in a commercial sense.
Determine whether you are able to afford the payments and costs involved. The less the monthly payment, the more you increase in your profit margins. Try to choose an optimal location that offers the best location for the best price. Set a budget for the business for building expenses to cover rent, payments and bills. Consider new employees, raises and where you are with what you decide to sell. Also, find out how much a bank or lending institution will lend you before looking to buy a property in order to ensure finances.
- Lease or Buy?
Consider both options as it might be better financially in the long run to lease rather than buy. If you are certain about buying in the future, then look into both sides of it. Save buying for later on when your business is steady and established.
Renting has its drawbacks such as having to deal with a landlord but you are ensured that your building is repaired and maintained. Either way there are advantages and drawbacks and it is wise to make a list of pros and cons before you make your decision.
- What to Look For in a Building
Try to find areas that are visually appealing with a plenty of parking. For instance, if you are looking to start a restaurant, ensure it has a full kitchen or the ability to easy add one. For an office make sure it has enough room for a good reception area, conference room…etc. Make sure ventilation and electricity wiring is done properly and check for leaks, damages or anything out of the ordinary.
- Choosing a Real Estate Agent
Having a qualified person on your side is crucial. Agents are trained and have experience and understanding of contracts and the process. Try to choose agents and lawyers who hold a good reputation, plenty of experience with contracts to help you could and also help in preventing law suits in the future.
Thanks to: hubpages.com
Image courtesy: realestate.co.jp