Investing in a commercial property in Moore County is a sound decision, with local businesses taking off. Aside from providing additional cash flow to property owners, the commercial real estate also contribute to the local economy and has the potential to provide great pay-off.
Things to know about Commercial Pproperties
One major thing to consider before investing in a commercial property is to look at valuation. Unlike residential properties, commercial real estate takes into account its income potential along with the usable square footage. Commercial properties also have longer leases than individual homes to provide more elbow room to generate cash flow.
Investing in Commercial Real Estate
With the local economy in Moore County getting stronger, investing in a commercial property promises a significant pay-off. Here are several tips that will help you scope out the most valuable commercial properties in the area.
- Be ready with your finances.
- Examine the whole deal.
- Have an exit strategy.
- Get into commercial real estate metrics.
- Limit your search to motivated sellers.
Unlike residential real estate, lenders that deal with commercial properties typically ask for a down payment of at least 20 percent before approving a loan. This is not always the case, however– make sure to talk to lenders that specialize in commercial real estate and explore your options carefully.
Aside from considering the income potential and usable square footage, you should also map out a plan of action. Who are the key players in the deal? How much money do you expect to earn from this? Is the property a mixed-use development?
It would also be helpful to determine the intended use of a space or the whole property. Will it be for retail, office space, or other specific businesses? This will allow you to plan ahead to make your commercial property even more profitable.
Another thing to consider is the neighborhood. Before you make an offer, talk to other commercial property owners in the area to get a better feel of the locale. It’s similar to when you’re searching for a home; you’ll want your commercial property to be located in a desirable location in Moore County. Not only will this increased profitability but the overall value of the commercial property.
Having an exit strategy helps you recognize a good deal. It’s a tried-and-tested secret among real estate professionals! This, along with having a sharp eye for details and a penchant for risk assessment, are just some of the factors that will make you a pro in recognizing good deals.
Having a better understanding of key metrics used in the commercial real estate will help you assess a commercial property better. These metrics include net operating income (NOI), cap rate, ROI, and cash on cash.
Motivated sellers are far more likely to negotiate a deal and even sell the commercial property below market value.
Bring the HAPPY back in commercial real estate… The Real Estate Gals!
It would be a pleasure for the Real Estate Gals to take you on a tour of the best commercial properties in Moore County! Once you’re ready, get in touch with us today at 806-930-8888 (Cheryl Clark) or 806-884-8769 (Jayme Clark).