[fa icon="calendar"] 02.27.2019 / by Demetree Real Estate Services
Due diligence is a must and should be implemented in every step of the way for business owners planning to buy commercial real estate. A commercial real estate purchase is a costly and risky endeavor, thus proper planning is exceedingly important to avoid tons of headaches and problem such as insufficient funding, unforeseen construction costs, inefficient layout and environmental proceedings.
Here are five factors that can help business owners acquire commercial real estate successfully.
1. Full Understanding of the Local Real Estate Market.
Every local commercial real estate market has its own tax rates, land inventory and environment issues, thus before making a decision on what to buy, business owners need to first consider the location of the property they are buying. You also need to consider the supply and availability of skilled labor in the area.
2. Consulting an Accountant or a Lawyer.
Today, affordability is a big deal in commercial real estate, thus working with your trusted accountant to determine your finances before you go to a bank is necessary. Make sure all hidden costs and other finance charges are included in your budget. Tax implications and other related matters can also be complex in real estate transactions. That’s why it’s extremely important to seek a lawyer’s advice who knows the ins and outs of commercial real estate transactions.
3. Getting your Finances in Order.
Get your audited financial statements and other documentation ready, showing that the income you generate from the business is being retained by the company. These documents, including your most recent bank account statements, will play a big part in determining if the bank or other financing institutions will grant the loan you need for the acquisition of the commercial property. Shop around for the best financing package; like the mode of payment and terms, interest rates, and other stipulations.
4. Drafting and Planning your Layout well.
The layout has an enormous impact on operational efficiency, whether it's an existing building or one that needs renovation and repairs. Thus, it is best recommended to seek the advice of an expert on how to optimize your layout.
5. Choosing the right commercial construction services.
Look for reputable builders or commercial construction services that have the ability to work to the highest standards; making sure all work is completed according to the scope of work as defined in the contract.
Despite commercial real estate costs having increased dramatically, many business owners are still into buying properties rather then renting them; not only because of rental increases, but it is a good investment as well.
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When it comes to real estate in Orlando and Central Florida, Demetree has a rich tradition in the Central Florida community dating back to the 1940s. The Demetree family has been a pillar and major contributor to what Orlando and Central Florida are today.
For decades, Demetree Real Estate has been specializing in providing property management, leasing, development, consulting and construction management services to property owners throughout Florida. As Central Florida’s oldest, locally owned, full-service commercial real estate management firm, we believe that business is built on relationships. That’s why honesty and integrity are at the heart of everything we do.
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