The real estate market is one of the most talked about markets. Buying and selling homes happen throughout most people’s lives, which is why many people have a pulse on the market. People seem to be well-informed whenever there is general speculation about either interest rates or prices increasing. In a competitive housing market, you may hear or read about people making significant profits quickly. Whereas investing in the stock market may seem foreign and unapproachable, buying property is something that many people have first-hand experience with.
You may consider looking at commercial property to generate additional income at some point. If you could handle a residential transaction, a commercial property couldn’t be that far off. Commercial real estate is a broad term that could mean several different things.
Multiple-family dwellings such as apartments, condominiums, or any property with more than one unit.
Office spaces
Retail locations
Warehouses and industrial centers
Hotels, motels, and resorts
Restaurants
There Are Unique Considerations to Consider
After you look at the list above, you should see how buying a warehouse is vastly different than buying an apartment complex. For starters, you need to ensure that the land is zoned for the type of commercial property you intend to purchase. Though you may want to buy a home on the lake and rent it out to a small start-up, you may need help.
Additionally, you are looking at this through the lens of an investor. If you plan on renting spaces out, you need to have a feel for how much you can charge based on the area. If there are multiple other apartments in the area, why will potential renters choose yours? How much will you have to inject into the property to make it attractive for renters? The same thought process extends to industrial and retail spaces as well.
Have the Right Team in Place
The hurdles you will have to overcome to close on a residential property differ from a residential one. Depending on the type of property you are buying, the lender will have specific requirements before you get loan approval. Though you may be familiar with land surveys and appraisals, you may have to deal with environmental inspections, permits, and acquiring appropriate insurance. Though there are too many variables that could surface to name here, the key here is that you don’t have to know how to resolve each one. When you are ready to buy a commercial property, contact the attorneys at Benbow, Davidson, & Martin, P.C. We have extensive experience assisting clients with closing on residential and commercial real estate. Regardless of the legal challenges you face along the way, you will have our firm supporting you. We want you to have confidence when you sign at closing, and it’s what you and your investment deserve.