The First Steps to Becoming a Commercial Property Investor

The First Steps to Becoming a Commercial Property Investor

If you’re in a position where you can consider investing in property, you may be scratching your head over what it entails. Owning property is a huge initial expense, especially in many parts of LA, The OC, and The Inland Empire. Also, it’s a massive responsibility to deal with the businesses that will be your tenants, so you will want to be prepared early in your journey to becoming a landlord.

Investing in commercial property

While getting started in commercial property investing may seem daunting, the following vital tips will make the process much more manageable.

Know Your Target Area

Which type of business is the most viable investment for the area? Are you looking at spaces usually occupied by small, medium, or corporate-sized businesses? Knowing the community and the types of consumers living there will also be greatly beneficial. Some residents are only interested in shopping at larger chain stores, while others cherish that small town, small business feel, but this varies from area to area, even within a particular city.

Regardless of the type of business, foot traffic is a critical factor as well. Even commercial property hosting a competent business will be much less valuable if there aren’t the consumers to back it up, and said consumers will be much more likely to help your investment if it’s in a popular location they already frequent.

Never Pay More than the Market Value

Even if you get offered a price that seems reasonable, the quote is ultimately what the seller or developer wants to charge, and not necessarily a reflection of the current market. Sometimes an offer is immediately recognizable as absurd, and other times will be low enough to be enticing to newer, naive investors. If you end up spending more than necessary, it will take longer for your investment to yield true results. Take the smart approach and independent investigate the current real estate market trends somewhere like realtor.com, or a similar site.

Financing, Loans, Legal Fees, and More

In addition to property costs, you also have legal fees to consider, which will vary depending on the state, county, city, etc. Check on local ordinances to ensure there aren’t any surprises.

Concerning loans, unless you have a large amount of money saved ahead of time, you will need to open a line of credit and finance your investment. While a loan will make purchasing commercial property more viable, you should come up with an adequate debt management plan.

MGR Property Management Can Help

Rather than brave the unfamiliar world of commercial property investment alone, put MGR’s decades of experience in The Inland Empire, Los Angeles, and Orange County to work. Our full range of services will ensure you don’t get swindled, and see a return on your investment as soon as possible. Whether you need us to completely take over for you or only partially, our staff of friendly experts can handle all of your real estate investment needs, from the first to the last step.

 

Kitchen RemodelingWhen it comes to renovating your rental property, it’s important to be methodical and careful with every dollar you invest. We’re sharing our best tips for improving your property to maximize your income potential. Read Should I Remodel My Property To Get More Value?

2018-10-05T14:15:17+00:00