Steps to Take When Purchasing Your First Commercial Property

May 29, 2018

Your first purchase of a piece of commercial property is likely to be a little nerve-racking, but don’t worry—there are plenty of things you can do to make the process go much smoother.

Here are some tips from a commercial real estate agent in Las Vegas, NV to help you prepare for your first commercial property transaction. For more information, get in touch with Victor Gesmundo Realtor today!

Question yourself about what you need and want

As you begin the search for a commercial property, you should be asking yourself a lot of questions. What type of property are you looking for? What’s your ideal location? Are you willing to share a property with another business? Do you absolutely need to buy, or could you rent? How much time, work and money are you willing to commit to the property? Are you willing to rent out part of your new property to another business? Are you fully prepared to make this investment?

These questions and many others can help you determine not just the kind of property you need, but also your ability to be an owner of that property.

Do plenty of research

Tour many different properties to figure out what you do and don’t like in a commercial space and what does and doesn’t work for you. This will also help you get a sense of what you can expect for a certain price in each area. Never underestimate the importance of location—there’s a reason properties near hospitals, downtown areas, universities and freeway off-ramps sell more quickly and for higher prices. They get much more natural traffic than remote businesses off the beaten path.

Be sure to research information like what the property is currently being used for, what it can or can’t be used for, how much income the property generates each year, the taxes on the property, upcoming repair needs, the reason the owner is selling and how the general area around the property is doing.

Secure financing

You’re almost certainly going to need a loan to be able to purchase the property. Figure out what kind of credit you have and the interest rates you can get from various lending institutions. You might also be able to work out a deal in which the seller helps with financing.

Make the offer

With the assistance of your realtor, put in an offer on the property. However, make sure you have your lawyer’s approval before you purchase. Your business lawyer will have you sign a letter of intent for the property and any contracts that are involved in the purchase. This letter will go over the transaction’s most general terms and protect you in the event that something with the transaction goes wrong.

A skilled commercial real estate agent in Las Vegas, NV can be one of the best resources you have available in this entire process. Make sure you choose your realtor as soon as you have decided you will start looking for commercial properties.

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