3 Tips For Buying Your First Piece Of Commercial Property

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Investing in real estate is a proven method of growing wealth. It is not uncommon for people to start out by investing in one or two residential properties and moving on from there as they become more experienced in being a landlord and ensuring a property is properly managed. For most real estate investors, the next step after residential real estate is investing in commercial real estate. Commercial real estate is typically more expensive too, but monthly lease payments collected are also higher, and commercial property often increases in value at a faster rate. If you're interested in investing in your first piece of commercial property, use the following tips:

Develop a Plan

Buying commercial property is not something that should be done on a whim. Before you even begin looking at commercial property for sale, it is important to think everything through and have a solid plan in place. Some people purchase commercial property to run their own business out of while buying property with the intention of renting it out to other businesses. Make sure you know how you intend to use the property before you make any buying decisions. You should also know if you want to buy a commercial property as a long-term investment or if you plan to flip it in a year or two when market conditions are right.

Work With an Experienced Commercial Real Estate Agent

When you're buying your first piece of commercial property, having an experienced commercial real estate agent will make the process much easier. Take your time selecting a real estate agent to work with, and select one who specializes in commercial property. Don't be afraid to ask a lot of questions — an experienced commercial real estate agent is a very valuable resource who can help you make the right decisions about what property to buy based on location, projected monthly lease payments, and current market conditions.

Be Prepared to Be Patient

If you're investing in commercial property, it is in your best interest to be patient and take your time finding the right property. Rushing into a purchase is almost always a mistake, and if you don't have experience owning commercial property, hasty decisions can lead to costly errors. You should be prepared to look at a number of different pieces of commercial property for sale and go through a lot of negotiations before you finalize your purchase.