- June 9, 2017
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Buying commercial property is definitely a team effort and you’ve heard the old saying, “There’s no ‘I’ in ‘Team’.” Given the risks associated with investing it’s recommended that anyone buying property seek the help of licensed professionals who can guide them through the process.
A complex procedure, buying commercial property has many stages and moving parts. From locating an ideal property all the way to executing a contract, for investors to ensure successful returns they first need to ensure a successful purchase.
This purchasing period is vitally important as it foundationally sets the stage for strong returns, and any bad decisions made during this time can spell disaster down the line. Trust us, we’ve seen it.
For investors to protect their interests and meet future performance goals they must seek the help of professionals. Who are these magical stewards of ROI? Below we outline the commercial property dream team who will set any investor up for success.
[bctt tweet=”There’s no ‘i’ in ‘team’. If you are buying #CRE make sure you use these professionals.” username=”svngll”]
The Commercial Property Dream Team
Buying commercial property involves three things: brokerage, financing and law. Unless an investor happens to have a real estate license, is a lender and has a law degree…they should seek the assistance of the below individuals.
Commercial Real Estate Broker
All successful transactions start and end with a licensed commercial real estate Broker. Bringing vast experience and expertise in their field, this individual (i) locates ideal investments, (ii) thoroughly researches and vets those investments, and (iii) negotiates the best deal and terms on behalf of their clients.
A Broker provides their clients with unparalleled access to commercial listings; even those that haven’t quite made it to market yet. With so many options this means an investor doesn’t have to settle for something close to what they want.
Another advantage to working with a Broker is that they look ahead. Through detailed market reports, environmental studies and high-level financial analysis they determine the future viability and performance of an investment property.
Beyond these advantages, where a commercial Broker really shines is in negotiations. Skilled in the art of a great deal, Brokers know the game and know what to look out for. Avoiding common contract pitfalls, a Broker will fight for their client and ensure optimal outcomes.
An accountant plays the role of safety net in buying commercial property, painting an accurate financial picture for an investor helping them to avoid any pitfalls. An accountant will (i) help an investor figure out what they can afford, (ii) assist with the budgeting process, and (iii) analyze any and all tax implications on the property.
Real Estate Lawyer
Purchasing commercial real estate involves a legally binding contract, emphasis on “legally”. No matter the vast experience of your Broker and Accountant, they will never be an expert in the field of real estate law.
A real estate lawyer will (i) assist with negotiations on their clients’ behalf, (ii) ensure the purchase transaction is completed in accordance with relevant laws, and (iii) will make sure their clients thoroughly understand how those signed contracts/agreements will affect their business.
Lender or Mortgage Broker
The second financial expert on our commercial real estate dream team, a lender or mortgage broker will help investors find and secure optimal financing. They assist investors in making decisions about the most affordable and cost-effective bank loans, SBA loans and other available financing options, and at what rates of interest.
Interested in Buying Commercial Property?
In any economic condition buying commercial property is a good investment, but only if the purchase was done using the right team. From stable cash flow to appreciation, successful commercial real estate transactions can produce returns for years to come. If you are interested in learning how commercial properties can earn you a steady income, contact us. Whether in our home markets of Baton Rouge and New Orleans, or in markets across the country, our dedicated team can get you the investment results you are after.