Investing in real estate—especially commercial real estate—is a major financial decision that determines your future success. But are you sure you’re ready to take the leap?
Considering that it’s your money on the line, you want to be sure that you’re setting yourself up for success.
To help you know for sure that you’re ready, we asked industry experts from Macomb Commercial Real Estate to share their views on how potential investors can determine if they should buy property.
– You Know Your Investment Goals
Are you planning to become an active investor? Or do you plan to create a property portfolio? As a would-be investor, you should have your strategy down pat, so you know it fits with your long-term financial goals.
Do your research on the type of commercial property you’d be able to manage and follow market trends to determine whether your property choice will benefit you in the long run. Only then should you consult with a property agent.
– You Have the Right Savings
Do you have a contingency plan? Or are you relying on lenders and loan options from your local bank?
Even if you think you have enough money to break even after you’ve signed the property papers, you might want to rethink the endeavor.
With commercial properties (or any property, for that matter), you need to have a considerable amount of savings in another account, so there’s enough left over for repairs and added expenses.
If not, delay your plans so you have something to fall back on.
– You Understand the Responsibility of Being a Landowner
If you plan to lease your property, this means you’ll need to take on added responsibility. Finding tenants, dealing with maintenance, budgets—as the primary owner, you will need to keep an eye on all factors related to property management.
Make sure you have the time to manage your responsibilities as a property owner before you move forward with the purchase.
– You’re working with a Team of Professionals
As an investor, you want to be sure that you have a reliable team working with you.
Real estate, maintenance, contractors—having the right team to guide you will not only make the task of being a property owner easier, but it’ll also help you delegate some responsibilities to those who are more qualified than you.
For example, if your tenant needs assistance with their lease, your commercial real estate broker will be capable of steering them in the right direction.
Think You’re ready?
Contact Macomb Commercial Real Estate today!