Many have found commercial real estate to be an excellent investment. The benefits can include tenants with long-term contracts who lease units that are much larger or more expensive than a residential property. However, risk comes into play because not every business is a success, and there may be long gaps between tenants.
Every commercial real estate professional has their tricks and recipes for success, but it comes down to making sound business decisions based on information and experience. Finding a reliable real estate agent is an excellent way to start, but this should quickly be followed by hiring an attorney who handles real estate law here in Austin and the surrounding area. These legal professionals can help clients avoid costly missteps by providing many essential services.
Looking for a good investment
There are several issues to consider when buyers are looking to enter the commercial real estate market:
- Picking a property: Types of property available include residential, industrial, commercial, office, or mixed-use. Buyers should weigh the options of each to determine where opportunities and interests lie.
- Assess the laws involved: Each type of property has specific guidelines for compliance. These rules also vary by municipality, so it is best to do an environmental assessment.
- Hire an engineer: This professional can evaluate the relative health of a property and buildings. This includes evaluating the climate control, plumbing, electrical, fire systems as well as roofs, foundations and landscaping.
- Look at the books: Review the financial records for the property, including tax obligations, overhead, maintenance, and agreements with any current occupants.
- Take care of the paperwork: It takes time to do a title search and check for existing liens. Buyers may need to plan well ahead to get permits, address ordinances or fill out other necessary paperwork.
- Secure financing: Potential buyers should work with lenders ahead of time so that they can act at the moment there is an opportunity. This also gives buyers a better idea of how much they can spend.
Support throughout the process
Real estate attorneys can directly take care of some of the above matters while perhaps providing insight and guidance with others. They can also draft contracts for the transaction, handle subsequent litigation and lease agreements for occupants. Ironing out these many details can reduce the risk and stress involved, thus making the process more rewarding and lucrative.