Investing in real estate is a long-term solution for building wealth and diversifying your assets. While some people focus on investing in residential real estate, many people choose to buy commercial property. If you're interested in buying your first commercial property through a place like The Schueler Group, you may want to consider purchasing industrial space-- many people do not realize that industrial space in in demand and is often easy to lease out at a desirable price. Use the following tips to buy your first industrial commercial property:
Hire the Right Real Estate Agent
When you're buying your first commercial investment property, working with a knowledgeable and experienced commercial real estate agent is absolutely essential. Your agent will be able to assist you in finding the right industrial commercial property and guide you through the buying process. Ideally, you should look for a commercial real estate agent who specializes in helping investors purchase industrial space.
Establish Your Budget
While you may be eager to invest in real estate, it is important that you don't over extend yourself financially by purchasing a building that is more than you can comfortably afford. Prior to looking at any industrial commercial buildings, carefully review your finances and then secure financing for your purchase. You will also need to do some market research to determine how much tenants are willing to lease industrial space for in your area. Ideally, you should purchase an industrial commercial building where that monthly lease payment at least covers the cost of your loan payment.
Look for a Building in Good Condition
Your best bet is to buy an industrial commercial property that is in good repair. Depending on the size and features of a building, it can cost a lot of money to repair and renovate industrial space that has a lot of problems. Most importantly, make sure that any building that you want to put in an offer on is structurally sound and does not have major roof or foundation issues.
Think About Potential Tenants
You most likely do not have any use for an industrial commercial building and you will probably be relying on a tenant to offset the cost of your loan while you build equity. In this type of situation, it is important to look for a building that has the things that tenants who need industrial space are looking for. A building that is a good buy will be adaptable to different types of businesses, has ample parking, and is located near public transportation or major highways.