Being an educated buyer is an important part of the process. It’s easy to get lost and overwhelmed in all the information about different property types, financing options, zoning, and all the other hoops of owning a property. However, it is important you know what you are getting into. You don’t need to know it all yourself, hiring advisors is a smart move to help you get a second opinion on the more technical side of things. Even with a good team of advisors, there is a lot you can research on your own to help you make a good decision.
Understanding the market conditions is a good first step. Real estate changes with time, so keep your eyes open for any news that has to do with the commercial real estate market at the time you are looking to buy. Compare current and past interest rates, see if it is a buyer or seller’s market, etc. Be careful that you are getting unbiased opinions and you are getting as many points of view as possible. It is easy to make a bad decision off of one false “expert” opinion. Educate yourself and if you are looking in this realm for someone to join your advisory board, make sure they are trustworthy and know all sides. If you are not looking for an advisor, there is a bounty of information available on the internet.
Knowing what location is right for you is also important. Information on demographics that can help you find your target market is easy to find from the U.S Census Bureau. This information can give you a good general idea of whether or not your desired location is a good fit for your business. If it is not a good fit, don’t be afraid to move on. It is easy to talk yourself into buying in a cheaper location, but if the customers aren’t there the profits won’t be either. The obvious exception with this is if you are building/buying a warehouse or factory that does not need to attract customers.
When you are looking at location, check out the area you are looking at as well. What are the other shops around you? Are you considering a location that lends itself to your business? How is the environment and atmosphere? Consider these factors before you commit.
So now you might be ready to buy. Time to research lenders. How you finance your project is incredible important and can follow you in the long run if done poorly. Be aware of the entire process of how you want to finance. Shop around with different banks and lenders to find the best fit for you. Just because you are used to using one bank, doesn’t make it the best option.
When you are ready to buy or have a big project in the works, Cascade Capital Funding is here to assist you. We are great advisors and lenders with years of experience in the field who can help you navigate the more difficult aspects of the process.