Article
> 10 Tips for Investing in Commercial Property
If you are looking to buy commercial property
for the first time, then it is essential to educate
yourself on how to maximise the potential you
get for your investment. Lots of businesses fail
because they make the wrong decisions early on,
and making a poor property decision can see you
left in a hole of debt and one that you can't
sell.
Here
are the top 10 tips that will help you decide
what properties to buy. Don't make a poor decision,
or your decision will make you poor.
1)
Rushing your decisions will leave you nowhere.
It
is unquestionably exciting to make the first steps
towards making your business dreams reality. However,
would you sooner have them come true briefly, vaguely
and quickly, or gradually, firmly and permanently?
If it is the first, then fine, buy the first place
you see. If the second, then keep reading.
2)
Educate yourself.
It
is more than a good idea to increase your knowledge
in this area. Bookshops are filled with the advice
of people who've made millions from property decisions,
who know the market, recognise the pitfalls and have
the benefit of years of experience. It's no shame
to take advice from an expert.
3)Make a plan and stick to it.
There's
a limit to what you can make from your business, and
the best-laid plans can go astray. From the very beginning,
make sure you're on track with the numbers and do
not let idealism hinder. The figures involved are
not just numbers on a screen - they're your future,
so don't play around with them.
4)Get out there and do some
physical work.
Check
out the area in which you're looking to
invest - what is nearby, what are other
people paying for property in the locality?
Talk to Commercial Agents to glean information.
If you are buying a shop, ask local shop
owners about trade, prices, and whether
they will be staying!
5)
Three simple words. Supply. And. Demand.
You
might have big ideas for your project, but if someone
else in the area who has the same ideas a few years
back then they've got a massive advantage. Is there
a need for what you're going to provide? If so,
go for gold. If not, keep looking for other areas.
6) Don't be scared.
Yes,
it's crucial to do the leg work, and the paperwork,
and all the other work as well. But remember, while
you're sorting out the finer details, remember that
a project requires final action. Don't miss out
on a great deal because there's some minor detail
you haven't got pinned down. A bit of multi-tasking
will let you to get it fixed.
7) Make people remember who you are.
People
will remember the guy who came up and spoke to them,
who shook their hand and showed an interest. So
if they get wind of a good deal floating around
they may put two and two together and get you.
8) Don't be narrow minded.
The
deal may be close to completion and suddenly a problem
shows up - something the vendor had kept hidden.
The temptation to just shrug and sign may be going
at you, but ask yourself why he kept quiet before
doing anything silly.
9) Look for a motivated seller.
Sometimes
people are selling up and moving out due to circumstances
beyond their control. This drives down the price
of the property. Don't feel bad about being a shark,
realise that there are several people out there
who'll screw the guy even worse. You can be sympathetic
and still get the deal done. In fact, showing understanding
can put you at the head of the queue.
10) Good luck!
Let's face it, luck always plays a part in business
success - when you get a break just make sure to
maximise it!
