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Buying a Commercial Real Estate – 5 Tips to Get It Right

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Lakes Whyte
Buying a Commercial Real Estate – 5 Tips to Get It Right

Buying commercial real estate is a big financial undertaking. Don’t let your investment go down the drain by choosing the wrong one. Make sure that you know what you are buying and that you do due diligence when it comes to purchasing it.

Here are a few tips that will help you avoid mistakes and ensure that you make the right buying decision:

Identify your needs and preferences first

It’s important to be realistic when buying real estate. However, make sure you know what is a deal-breaker and what you can live with. Which of the items on your list can you live without?

Look at real estate properties with an open mind. Will you be able to renovate the space and turn it into the commercial space that you want? What’s important is that the property has good bones and that it doesn’t have major issues when it comes to structure, HVAC, electricity, and water supply.

Know how much you can afford

Do the math and carefully assess the profits you can gain. Assess the risks as well, especially if you are going to rent out the real estate property. Once you know all these figures, you will be able to better identify the things needed to ensure that you can afford the real estate property.

Find the right financing

Choosing the right financing option is just as important as finding the right property. If the bank isn’t willing to finance it or will give you a high interest rate, it’s still not a good deal. Banks will also consider the value of the property and determine if it’s worth investing in.

You can try getting a pre-approval for your commercial real estate financing to find out how much the banks will lend you and determine if this will fit in your budget.

Understand the market

Do your research on the trends in the market. How much do commercial real estate in the area cost? Compare that with the price of the real estate property you are thinking of buying. Determine if the price is reasonable.

Aside from that, make sure you also know the market in that area. What kind of people does that commercial district attract? That will help you realize what kinds of businesses would suit your commercial space.

Find good lawyers in Vancouver

Lawyers in Vancouver BC such as Lakes, Whyte LLP will check the property and ensure that there are no encumbrances that can hinder the transfer of the title. If there are existing liens or encumbrances, that can end up being a major problem in the future.

Make sure you pick lawyers in Vancouver who are experienced in these cases. Get lawyers in Vancouver BC as well to review your buy and sell agreement.

These are the things that you need to know when purchasing a commercial real estate property.

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Nikolas Lowry is the author of this article. To know more about Estate Lawyer in North Vancouver BC please visit our website: lakeswhyte.com

 

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