Narrow Down Your Property Search: 3 Factors You NEED To Know
Being an investor means having a clear strategy of what you will inject equity into. Whether you are a seasoned pro or beginner, every investor has a team of advisors guiding them towards the right opportunities and getting them through closing.
As the main decision-maker, there are certain factors you MUST think about when deciding to look for a new commercial property. The following 3 key points will help you filter out deals and allow you to work proactively with your commercial team in locking in the right opportunity.
#1: What Type of Property Are You Looking For?
This question might seem simple, but with the intricacies of commercial real estate, you might find that what you thought you were looking for might not be exactly what you need.
Depending on what property type you invest in, there are different risk levels an investor might be willing to take.
If you manage a business and are looking to find a new space for your operation, your business practices might require you to have a space with more unique features or a specific location.
This is why it is important to communicate your needs and intentions to your commercial team. They will help you in narrowing down what property type will be best suited for your strategy based on your experience, commercial portfolio, and property needs.
#2: What Are Your Goals In Purchasing This Property?
When painting yourself a clear picture of why you're investing in a specific type of property, you need to ask yourself the following questions:
Will my business be occupying this property?
Will I have any tenants occupying the property?
How long do I intend on holding this property for?
What are my short and long-term goals for my investment strategy?
Another significant factor to consider begins with financing. Unless you are putting a cash offer on a property, financing will be the main event in getting you to the closing table.
Meeting with a mortgage broker BEFORE shopping around and going under contract will be one the BEST moves you can make when investing.
The right commercial mortgage broker will collect all necessary documents upfront and give you a clear analysis of what you can reasonably afford and where your debt ratios will fall. It is a step that many people skip and it ends up delaying the deal due to underwriting requirements.
By determining what your financing guidelines are, you can begin to look for the right commercial property that will allow you to secure your investments in the long-run.
#3: How Will You Add Value To Your Property?
There are countless opportunities when it comes to value-added investments. You might consider doing physical alterations to the property in order to increase rents, or focus on getting more secured tenants for the long-term.
Whichever your value-added goals are, it is important to have a solid idea of what it will look like once you have secured your commercial property.
Having the right goals in place will help you and your team determine whether a property is the right fit for you.
Connect with me today so we can chat about how to make your investment goals a reality!
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