What To Examine When Buying Your First Commercial Property
Real estate can be a lucrative way to invest your money; if you make the right decision on a property, you can make a great deal of money over the years as you improve your property and sell it. It can be just as easy to lose money if you make foolish decisions because you don't have the right information in mind. Examine the following documents in order to make a wise choice about buying a commercial property.
If you're looking to buy commercial properties, it makes sense that you assume that the buildings and properties you are looking at are in business zones. However, it's important to be mindful that every property is required to adhere to the zoning ordinance guidelines. If you plan to raze the small building on a property and erect a two-story building in its place, you need to verify that a new building like that would be allowed in that particular business zone.
If your improvement plans run contrary to the existing ordinance, all is not lost yet. You can still petition the town or city for a variance that would allow you special permission to go through with your plans. Every variance application is different, so be sure to ask what is required in order to be granted permission to do what you like.
Whether you plan to purchase a set of apartments or an office building, many times commercial properties have tenants that are already inside the building you plan to buy. It is wise to take a look at the terms of these leases to determine whether you are satisfied that the terms are fair for you after you buy the property.
For example, a part of the lease might give a particular tenant two months to pay back rent before eviction proceedings are initiated. Depending on the laws in your particular state and your own personal thoughts on the subject, you might want to reduce that amount of time. You might also notice that the rents are lower than the current market rate and be obliged to wait until the lease is up before raising prices. Reviewing the leases with your attorney can help you to be more aware of whether the property would be a sound investment for you.
These documents should provide you with adequate information about a commercial property before you decide to take action and purchase it. Ask a real estate agent or broker from a firm like Coldwell Banker George Realty for more even more information about the property and the neighborhood so that you can make a good choice.