3 Tips To Follow When Investing In CRE
2.3 min read
Investing in commercial real estate requires time, patience, and significant due diligence. If the necessary actions are not taken, business owners could run into many issues along the way. It is crucial to work with an experienced and knowledgeable commercial real estate agent to help make the process run smoothly.
We’re sharing three tips you and your CRE agent should follow when looking to invest in commercial real estate.
1. Find comparables for the area.
A comparable is a recently sold property similar to the property you are currently looking to invest in in terms of location, size, conditions, and features. Finding relevant comparables will help give you a better idea of the average price a property like yours should go for. This will help you decide whether the property is the right fit for you and your business.
2. Have your financing ready to go.
Affordability is a key factor to consider when investing in commercial real estate. Unlike most residential properties, commercial properties often come with a significantly heftier price tag. Consulting an accountant before going to a bank will allow you to determine your budget and the next steps you must take. Once you have consulted your accountant, you must get approved for financing. Don’t be afraid to speak to multiple financial institutions or lenders to determine what financing package makes the most sense.
3. Make plans ahead of time.
Whether you are looking to renovate or utilize an existing property for your business, it is essential to determine your layout ahead of time. This will help ensure that the space works for you and not against you.
As an investor, commercial real estate agent, or both, it is important to take the necessary steps to ensure investing in commercial real estate is a breeze.
Reference
5 tips for buying commercial real estate. BDC.ca. (2022, May 5). Retrieved May 25, 2022, from https://www.bdc.ca/en/articles-tools/money-finance/buy-lease-commercial-real-estate/commercial-real-estate-acquisition-5-tips-for-success
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