There are many advantages to investing in commercial property as opposed to residential homes and apartment buildings. You can often get longer lease terms and earn higher yearly returns on your investment. Moreover, retail tenants have an inherent interest in maintaining the property to attract customers. If you're interested in a new source of income, Winmar Corporation, the most trusted property management company in Lexington, KY, offers some tips for buying commercial property.
Tips for Buying Commercial Real Estate
1. Get Your Finances in Order
Do you plan to finance the purchase? If so, speak with a lender to find out what you can afford. Depending on the type of property and the lender, you may need a 15%, 25%, or even 50% down payment. Make sure you develop a relationship with your lender, know how much you can borrow, and have the necessary funds before moving forward.
2. Evaluate Your Risk Tolerance
Some types of commercial property are riskier than others. Retail and restaurant spaces have notoriously high turnover, while office rentals are usually more stable. Moreover, commercial real estate in general is a riskier investment than residential property. Remember, everybody needs a place to live, but not everyone is looking to rent business premises. If you are unable to tolerate risk, you should consider a safer, more stable type of investment.
3. Check Out a Wide Selection of Properties
Don't leap into a purchase without looking first. Tour a variety of commercial properties before deciding. Evaluate what features are most important, and narrow your search to properties that meet your needs. Some of the most important factors to consider are price, location, property condition, and types of allowable use.
If you decide commercial property is the way to go, Winmar Corporation is happy to be of assistance. Contact one of their commercial real estate agents for help and guidance entering the market. Visit their website to read testimonials from satisfied clients, or call (859) 254-5755 to discuss your options with friendly professionals.