How to Own your Own Commercial Real Estate
Every time that we walk around large buildings, you may wonder who owns those commercial real estate properties. We know that it takes a lot of money to do so because these types of property are different from residential. Commercial properties can be either purchased or leased. Some companies rent in a commercial real estate property for work purposes. Sometimes, it is used as their office in a different area. Leasing is fine but owning it is much better because you can earn more money when you have tenants.
Owning a commercial real estate property is difficult because it needs a large investment. However, there are seven steps on how you can own commercial real estate property doing it yourself. After all, you will be the one to decide if you want to own commercial real estate.
Steps on Owning a Commercial Real Estate
1. Never forget to ask yourself lots of questions – Questioning yourself with this matter will be a big help in your way to own the property. Asking yourself will help you know the things or property features you are looking for, and if you are ready financially. We know that money is important that is why questioning will be a big key for your decisions.
2. Be familiar with the commercial real estate language – Several acronyms and vocabulary are always encountered in commercial real estate. Being familiar with it will help you decide to purchase and need to talk with real estate agents. Learning the language will make the process fast and easy.
3. Do not settle on only one property – It is always best to consider several properties than only eyeing one property because it will help you find the one that fits the standard and features you are looking for in a commercial property. Visit different commercial properties. It will help you narrow down your list or will help you find the best for you. When looking, always consider its location, cost, facilities and its condition.
4. Seek the help of an expert – Just like every property, commercial real estate is also complicated. You cannot handle everything on your own that is why it is always good to find the help of the professional. The experts that you will need to seek the help of are the commercial estate lawyer, realtor, mortgage broker and accountant.
5. Know your finances – When owning a commercial property, it needs a lot of money that is why it is important to know where you can find help when it comes to finances.
6. Ask for your lawyer’s approval – Never sign any papers without letting your lawyer review them. Your lawyer plays a big role when it comes to the commercial real estate because he or she will explain everything regarding the agreements that have been made so that you will be aware of your duties and privileges.
7. Escrow and Due Diligence – This step is where everything becomes real. You have to acquire an American Land Title Association survey that will be used in the due diligence. The ALTA survey that you have ordered provides the important information regarding the property. The escrow officer is unbiased, which will be the third party who will supervise all the transactions made. The escrow will be the one who will make sure that both parties who are in the transaction are secured.
The seven steps to owning a commercial real estate will never be easy as long as you follow it accordingly and will always seek the help of the professionals who are knowledgeable in commercial real estate.