{"id":1881,"date":"2019-02-11T12:00:46","date_gmt":"2019-02-11T17:00:46","guid":{"rendered":"http:\/\/www.atyourbusiness.com\/blog\/?p=1881"},"modified":"2019-02-11T12:01:05","modified_gmt":"2019-02-11T17:01:05","slug":"5-crucial-tips-for-making-your-first-commercial-real-estate-investment","status":"publish","type":"post","link":"https:\/\/www.atyourbusiness.com\/blog\/5-crucial-tips-for-making-your-first-commercial-real-estate-investment\/","title":{"rendered":"5 Crucial Tips for Making Your First Commercial Real Estate Investment"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><\/h2>\n\n\n\n<p>If you own a small business that&#8217;s growing, you can easily outgrow your leased space. Assuming your revenue supports it, you may consider purchasing <a href=\"https:\/\/www.investopedia.com\/terms\/c\/commercialrealestate.asp\">commercial real estate<\/a>.<\/p>\n\n\n\n<p>Commercial real estate isn&#8217;t like personal real estate. As a general rule, you must use the property for a business purpose. Think central office, headquarters, or retail space.<\/p>\n\n\n\n<p>Thinking of making that first commercial real estate investment? Keep reading for some tips for making the process a little smoother.<\/p>\n\n\n\n\n\n<h2 class=\"wp-block-heading\">1. Secure Professional Legal and Financial Assistance<\/h2>\n\n\n\n<p>Commercial real estate purchases can prove quite complex. When you consider your first commercial real estate investment, you should secure the services of the following:<\/p>\n\n\n\n<ul><li>Commercial Real Estate Attorney<\/li><li>Accountant<\/li><li>Commercial Real Estate Agent<\/li><\/ul>\n\n\n\n<p>If your bank doesn&#8217;t hire someone for the job, you may also want someone who can perform environmental testing. The most common version of this testing is the Phase 1 ESA.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2. Hire an Engineer<\/h2>\n\n\n\n<p>Before you plunk down hundreds of thousands or millions of dollars on a property, make sure any structures remain sound. A good structural engineer can examine any building and provide you with a detailed report on their condition.<\/p>\n\n\n\n<p>This protects you from purchasing a property that won&#8217;t last more than a few years. It also informs you which systems might near the end-of-life soon.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">3. Look for the Right Loan<\/h2>\n\n\n\n<p>Commercial real estate loans come in several varieties. Some of the  include:<\/p>\n\n\n\n<ul><li>SBA 7(a) loans<\/li><li>SBA 504 loans<\/li><li>Joint Venture loan<\/li><li>Commercial Mortgage<\/li><\/ul>\n\n\n\n<p>For a first-time commercial property purchase, your best choice is probably the SBA 7(a) loan. This loan maxes out at $5 million, but most small commercial properties should come in under the cap.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">4. Develop a Clear Vision for the Property<\/h2>\n\n\n\n<p>You need a clear sense of what you plan to do with the property. If you know what you must remodel, you can secure the financing for it.<\/p>\n\n\n\n<p>One useful tool for clarifying your vision is <a href=\"https:\/\/floorplanimaging.com\/\">3D floor plans<\/a>. They can expose flaws in your thinking or help you imagine something even better.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">5. Don&#8217;t Fear Walking Away<\/h2>\n\n\n\n<p>You almost certainly considered several properties before you selected one. If something turns up in the soil report or engineer&#8217;s report, consider walking away.<\/p>\n\n\n\n<p>If the building has serious problems, you&#8217;ll suffer less in the long run from picking another building and trying again. It&#8217;s better that you spend the extra time picking the right property than spend years trying to fix the wrong one.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Parting Thoughts on Commercial Real Estate Investment<\/h2>\n\n\n\n<p>Pursuing your first commercial real estate investment can create excitement, fear, and impatience.<\/p>\n\n\n\n<p>Don&#8217;t skip anything. Do your due diligence in finding out everything about the property, including the condition of the soil. Bring in a structural engineer for the low-down on the building condition.&nbsp;<\/p>\n\n\n\n<p>Get a clear picture of what you see as the final version of the property. Develop 3D floor plans if it helps you focus.<\/p>\n\n\n\n<p>If things turn up that make you hesitate, don&#8217;t ignore them. Walking away can end up saving you time, money, and mountains of frustration.<\/p>\n\n\n\n<p>Thinking of making commercial real estate a full-time occupation? Check out our post on what you should know .<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you own a small business that&#8217;s growing, you can easily outgrow your leased space. Assuming your revenue supports it, you may consider purchasing commercial real estate. Commercial real estate isn&#8217;t like personal real estate. As a general rule, you must use the property for a business purpose. Think central office, headquarters, or retail space. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"_links":{"self":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/1881"}],"collection":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/comments?post=1881"}],"version-history":[{"count":1,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/1881\/revisions"}],"predecessor-version":[{"id":1883,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/posts\/1881\/revisions\/1883"}],"wp:attachment":[{"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/media?parent=1881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/categories?post=1881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.atyourbusiness.com\/blog\/wp-json\/wp\/v2\/tags?post=1881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}