Starting up your own business is never a breeze. Aside from the countless hours needed to perfect the business concept, far more time and planning is needed for the actual execution.
One of the foremost things that will come to mind is the logistics. Will you opt to lease a property or dive head-on and purchase one? Will it be a spacious space dedicated entirely for warehousing? Or are you looking for a future physical store? How about an office space?
To help you out, we’ve rounded up several key steps that has been proven time and time again to contribute in easing up the whole property hunt process.
So let’s start learning and hunting for the best deals in the market.
Know what you need to know
You’ve been looking online, sifting through ads after ads, exploring your options and literally searching high and low but feels like there’s just too many options to choose from.
Admittedly, there really are countless of choices to choose from. And this fact alone makes the property hunt way better and well, a lot more complicated.
But how can you use this fact to your advantage?
Know yourself and understand your needs
To limit the endless search, you must have an idea what exactly you’re looking for and stick to it. Most property hunters who succeed are those who tried to learn what insiders in the business know.
For starters, familiarity with key commercial real estate metrics easily gives one a huge edge in successfully sealing the best deal. When dealing with sellers, it is advisable that you know the basic terms that will probably come up in negotiations. These might include cap rate, cash on cash, loan to value and a lot more.
This article by Property Metrics perfectly summed up the real estate formulas you definitely need to know.
Aside from this, you might want to start sifting through your list of criteria. Other than location, what are the factors you also consider as non-negotiables? Is it the rent or selling price? Amenities? Or maybe the floor area?
Sometimes, these may also include the terms of payment, utilities and even traffic patterns around the area. Once you’re ready with the list, you can easily plow through your choices, come up with your final options and start touring the spaces you’ve picked out.
Enlist the help you need
More often than not, property hunters conduct their initial search through public advertisements. But another way to ease the process is by enlisting the help of real estate experts. Solid years of experience give these people the knowledge that even property hunters who are not new to the venture still need to know.
Remember that the commercial space you want to get is meant to be profitable.
This fact along convinces most that proper consultation with real estate experts is necessary. The experts know the feel of the market and understand the underlying possibilities in each investment venture.
When you’re unsure about what you should look for in a property, you can easily go to them for sound advice. Even the legalities of the whole process will be adequately covered.
These experts will also help you find motivated sellers—the kind who are so eager to sell their properties below the market value which is exactly what you want to get. If you’re unable to find a motivated seller, chances are you might need to adjust your budget a little in the end. Know that if your seller is not motivated, negotiation may not go as you expected and planned.
You may even want to seek help of a real estate lawyer if you want to make sure all details will be swept and taken care of.
So before you sign that deal, find an expert or build a team who can guide every step of the way.
Be a Pro
If you plan to find a best commercial property deal and find it real quick, this tip may come off as some sort of a joke you won’t even find the least bit funny. But it’s here for a reason.
Yes, we already told you how valuable real estate formulas are and how success can be guaranteed once you have the best team behind you–but it should not end there. Another factor you should work on is YOU.
Because let’s face it, at the end of the day, you are the property owner and you have to be your own kind of expert. While dependence is more than acceptable, building up your knowledge beyond the usual formulas can boost up your confidence ten times fold.
So if you’re new to all this, how can you be an expert overnight?
Well, when we said expert, we’re being a bit loose on the use of the word. By expert, we meant deeper understanding and below surface knowledge of what you’re dealing with. For starters, you are expected to familiarize yourself with the things top real estate pros know by heart. An example is how to recognize a good deal. Some may be easy to spot while others need keener analysis and investigating.
But the real secret is through an exit strategy
Let’s say you’re planning to lease a commercial space, your best deal would be the one where you can easily walk away from. When it fails, you have an espace. It pays to have a sharp eye and be mindful of the risks associated with the property and even the seller you’re dealing with.
And of course, it still comes down to meeting your financial goals. If your calculator gives you a glaring no, then it’s best to stay away from a potential bad investment decision.
Once you’ve gone through these tips and did your assignment, then by all means, your business is well on its way to becoming the success you planned it to be. Good luck!