You’ve decided to start your own business! You’ve begun filling out your plan, you’ve got ideas for your first ad campaign, and you have a steady way to keep pumping out your product. Now if only you could find a building to work out of.
No matter if you’re looking for a home or a commercial property, buying a building can be complicated. There’s a lot of paperwork that goes into the entire process. Big money transfers and real estate agents can help make things a little easier at least.
Check out this guide for a complete list of hacks that will have you closing a deal in no time.
1. Figure Out Why You’re Investing
If you’re a first time home buyer, your reason for investing is obvious. You need a place to stay and raise your family if you have one. Buying a commercial property is a little less cut and dry.
Figure out what buying a commercial property will help you accomplish. Do you even need one? Some jobs can be done out of your home.
Once you figure out why you’re investing and find a building or two that can meet your needs, it’s time to start looking for ways to fund it.
2. Find Financing
No matter if you’re buying a home or office building, one thing remains the same. Most people can’t afford to pull money out of their pocket and hand it over to pay for the property. You’re going to need a little financial help from lenders and leases.
Before buying a home from a lender, they’ll take a look at your credit. If your score isn’t high enough, you’ll get denied for the loan and have to go to another bank.
Commercial business lending works a little differently. Instead of looking at your credit score, the bank will decide based on the business’s net operating income.
How much money will the business be making? How much of that cash will it use up in operating costs? The lender will need the answer to these questions before going forward.
If you have to lease, there’s a good chance that you’ll be paying for insurance, property taxes, and any maintenance that has to be done on the building. At least, if you’re renting the space for business purposes.
Home renting is a little more forgiving. Most landlords will force you to get homeowners insurance, but they are responsible for fixing things that break. You also won’t have to pay property taxes.
ACH transfers won’t help you pay for the property, but they will make it easier for you to hand over your rent. Using one will allow you to move your payment from your bank to the lender. It’s sort of like a wire transfer, except that it’s more secure.
There’s also no fee, usually. If you do have to pay a fee, it won’t be too outrageous. The only downside is that there is an ACH transfer limit that you’ll have to keep in mind.
3. Finding the Right Property
So, you’ve got a lump sum of money in your hand and are ready to start hunting down a property to buy. You shouldn’t sign a contract and throw down payments on just any building. You need to do a little bit of research.
You don’t want to accidentally purchase a building that isn’t going to help you meet your goals. If you’re buying a home, your goal is clear with some possible exceptions. You may need something special like a fenced-in yard if you have a dog or children.
When getting a commercial property, you’ve got to keep your business goals in mind. You’ll need to consider the locations where your target market can be found. You’ve got to figure out if you have any competitors nearby.
4. Consider All Factors
So, you’ve found a property that you love. It’s time to buy, right? Wrong.
You need to read the fine print and analyze every aspect of the deal. You never know, there could be a better commercial property or home laying nearby that’s a better opportunity. Consider everything before you sign that paper and see if it lines up with the goals you’ve made.
5. Visit the Properties
It doesn’t matter if you’re buying a home or work property; your search doesn’t end on the other side of a commuter screen. You’ll be able to see many property details on a real estate webpage, but you can’t really analyze the investment unless you visit the building.
Give it a walkthrough and don’t forget to ask the agent several questions. This is the perfect way to help you decide between several different properties, as well.
6. Choose a Good Real Estate Agent
Having a real estate agent in your corner will ensure that you get a good deal on a property that will work for you. They’ll take all your interests to heart and work hard to look around the market.
If they are a good real estate agent, that is. In order to find the best one, you should get referrals from another person. If you know anybody who has bought a building, ask them who they went through. That should help you narrow things down.
Give each agent you’re considering a call and ask them questions. Treat this the same way you would treat a job interview because it sort of is.
Keep These Essential Things in Mind When Buying a Building
No matter if you’re looking for the perfect home to raise your family or a good office to run your business out of, you need to consider everything when buying a building. The last thing you want is to pick a property that’s not surrounded by your target audience.
That’s the same as buying a home with no fence if you have a dog. What’s the best way to buy a building that meets all your criteria? Follow these tips and get a good real estate agent in your corner.
Once you’ve got a building picked out, it’s time to get your down payment together. Check out the money-saving section of our blog for a few tips that will actually work.