The most salient and most important decision for commercial real estate buyers is why they should make a decision to buy a commercial real estate property. It can be based on a decision to buy a property to house a business or it can be purchased for investment purposes. Regardless of the reason, several steps should be taken so as not to make the decision a fatal one.
A good first step for real estate buyers of all types is to get a proper and reliable appraisal of the property in question. An appraisal is usually done so as to get the maximum returns in order to make a profit. Not only a purchase appraisal should be done but also a rental appraisal, that is determine how much rent is being paid in the vicinity if renting it out to others is your target.
However, if one were buy the property with the view of housing their own business, then some computations have to be done. That is to look at how much profit will remain after monthly mortgages and the like. If the expectations run short of this then maybe it may be good to run a business on rented rather than owned property.
Prior also to buying any commercial real estate, the assistance and counsel of a good real estate lawyer or attorney is recommended. This is so that one can be familiar with rules and regulations when purchasing such properties. Only a lawyer can fully understand the legal terms that can either hinder or help you in the process. Real estate agent buyers often have good contacts in their rolodex of one, if you should need one.
A most important step is to get financing for your property purchase. Unless you are cash rich like Rockefeller or some other business mogul, this will not be a problem. However for most of us we will need it. Most financing institutions like banks feel that chances of default on a loan are high, thus the high penalties for missing payment deadlines. Also try to stay away from properties that have liens and encumbrances.
The best way to get a loan is to have a character reference handy which the bank may know or trust. Likewise have a business plan handy. In this plan outline all possible steps needed for loan repayment, structural plans, cash flow forecasts and the like to help you get that much closer to loan approval.
In the final analysis, it will be up to you to decide whether you see it as a profitable venture or not. Do your homework by listening to experts and reading all you can regarding the property you have in mind. There may be some disappointments and blocks to your progress, but remember that if you do things right, real estate can be a very profitable venture.