Investing in real estate, commercial properties for sale being one, requires and demands a lot and this pertains not only to the financials but also to time, hard work and even patience. Today, we shall set out and list down the various aspects needed for such an investment. Gear up and have your pens at the ready, a checklist is coming your way.
Item #1: The Plan – Retail property purchases are a huge investment. They come packed with significant monetary value and not to mention many of these are wanted by many. It only makes sense for a wise investor to come prepared with a plan and a set of strategies to achieve the goal at hand.
Item #2: Immediate Cash – Short term needs will always be present. There is more to asset acquisitions than the purchase price. Pre-sale expenses will include survey fees, professional costs and research expenses. Plus, don’t forget the deposit and down payment. See to it that you have the resources to provide for these.
Item #3: Long Term Finances – This is where majority of the costs will be centered on. Long term financing must be prepared beforehand to ensure that there is sufficient cash to make the purchase happen. Mortgages, bank loans and sale proceeds are only some of the options available.
Item #4: Needs and Wants – Determine what you need in the retail space. You can even add your wants to the equation. Once you have this all figured out, you can now more easily look for the asset that fits the bill.
Item #5: Survey Results – Always have the asset surveyed by a chartered property surveyor before closing in. This is to validate certain facts like remaining useful life, market value, ongoing costs, property condition, ownership and depreciation to name a few. It would be plain suicide to not do this.
Item #6: Title Validation – Make sure that the person selling has the right to do so. Check the papers and validate with the Registry of Deeds. It’s best to be safe than sorry. Remember, this investment is pretty hefty on the pocket.
Item #7: Knowledge – Buying commercial properties for sale is not for the faint of heart and for the knowledge-deficient. There is so much to do and remember that failure to know things can become so detrimental. When in doubt always ask or better yet hire a pro for help.