You have diligently worked hard. Your small business has blossomed and you now have a tidy sum in the bank. Naturally, you should be thinking about investments. There are many investment options out there; the good ones, the not-so-good, and the outright stinkers.
Buying a commercial real estate is one of the best decisions you will ever make. However, deciding to buy a commercial real estate is the easy part, eventually buying the right property is however not as easy unless you have an experienced partner by your side. Learn more at https://3cre.com/commercial-property-for-sale-cincinnati/ regarding commercial real estate in Cincinnati.
There are pitfalls that many investors have fallen into, and which you should be well advised to avoid. For instance, there are many ‘experts’ out there who in all honesty are seeking to part you with your hard-earned cash, often for their benefit. Before you swallow an expert’s advice hook-line-and-sinker, you need some level-headed knowledge of what a good commercial real estate deal looks like.
To make your task easier, the following five tips should guide you in getting the best commercial real estate deal at the most competitive price.
1. Conduct market research to establish the going prices.
Don’t even think about entering into a deal if you have not established how much the type of property you are seeking to buy is going for. Don’t be in a hurry. Look around until you are sure you have the best deal on your hands. There’s nothing as gut-wrenching as buying a property and then realize you have paid more than the going rates.
2. Before you buy, do your due diligence to establish the authenticity of the property.
A good rule of thumb is: Don’t buy the property if you have not seen it. This may sound like a no-brainer but you would be surprised how many people have purchased properties without viewing them, and many have been conned in the process.
3. Look for sellers who are desperate to sell.
When you get a motivated seller, you can drive a deal down to the wire. I know it may sound ruthless to seek to profit over others’ misery, but if you don’t take the deal, someone else will. In any case, the motivated seller desperately needs the cash. Your duty is to get the best deal possible, and getting a seller who ‘must’ sell because they need the cash is an opportunity you can’t afford to pass up.
4. Make sure the commercial real estate property you are seeking to buy can accommodate multiple tenants.
This is important if you want to spread or diversify the risk. Should a tenant default or relocate, you can still count on the others to keep your mortgage payments up-to-date.
5. Hire an expert!
Okay, I know what I have just said about ‘experts’. The truth is that no expert can replace the need for you to be involved in the purchase of a commercial real estate. You need to at least understand the process. You also need to know whether you are getting the best deal the market can currently offer.
However, beyond this point, you need a ‘real’ expert; not the dime-a-dozen ones. Having an expert guide you is irreplaceable. In any case, they know more than you do. It’s their business to know the market. So, if you really want to be sure you’ve got the best deal, a commercial real estate expert will be invaluable.