Steps to Take If You Want to Own A CRE Property
A commercial real estate (CRE) property is a great investment opportunity, but if you’ve never invested in this type of property before, there’s some things to know and think about. CRE property investing is very different from residential property investing.
With CRE investing, there is usually more work and risk; however, there can be a lot more rewards with this type of investment as it can give long-term returns.
If you are unfamiliar with the CRE investment world but are interested in investing into it, your best interest would be to work with one of our brokers at HOWE Real Estate who have many years of expertise in this industry. We know CRE properties and investing inside and out and can help you every step of the way.
Before you meet with us, we just wanted to share with you some brief steps to owning a CRE property.
Ask Yourself A Lot of Questions– Know what your situation is and what you’re looking for. Figure out what kind of property you are looking for and what you want to use it for. Think about location. Think about it you should buy or lease. Think about how much time you can commit to the property. Figure out what skills and knowledge you have and what you need. Figure out if you are ready to handle an investment of this size.
Educate Yourself on CRE – There’s a lot to learn about CRE, but start to familarize yourself with all ther terminology including loan-to-value, debt service coverage ratio, capitalization rate, cash on cash, vacancy rate, ad valorem, and much more.
Visit Many Properties – Take a look at many properties and do your homework on all of them. Figure out what you like and don’t like about each of them. Figure out what’s important to you from price and location to current condition and usage. Learn about the taxes on the property, why the owner is selling, what the surrounding area is like, what kind of income does the property generate, etc.
Figure Out Your Finances – You likely will need to get financing help to make this CRE investment. Look into different banks, credit unions, and home mortgage companies. See if the current owner can help with financing.
Make an Offer – Talk to your lawyer first before making an offer. Your lawyer will have you sign a letter of intent about the property, which includes basics of the transaction.
Closing – Make sure all documents are in order and correct. You want to make sure everything about the property you know is true.
Looking for Commercial Real Estate Property for Sale?
Since buying a CRE property can be complicated, one major step you should add to the list above is getting professionals to help you with the buying process.
Our team at HOWE Real Estate can help you find the right CRE investment. As CRE brokers and commercial real estate experts, our team at HOWE Real Estate is happy to help you find a CRE property, whether you’re a seasoned CRE investor or new to this type of investment. We have extensive experience in the CRE market. We can even help you get set up with other CRE experts like accountants, lawyers, notaries, tax experts, and more!
At HOWE, our ability to get creative with new solutions to old problems has made us a leader in commercial real estate. Our commercial real estate brokerage, real estate development and consulting services across all market segments. This includes retail, industrial, office, investments, land, mixed use, development and multifamily.
Let our team of professionals at HOWE Real Estate help you get started on looking for a commercial property for sale. We work with buyers, sellers, lessors and lessees across all property types. To contact us, send us an email or call 502-890-4475.
Check out our commercial real estate listings.