Buying commercial real estate in Texas or anywhere else is a hugecommitment, but the potential payoff is also quite significant. Whether you’re using the property to house your own business or are planning to lease out the space, owning commercial property is definitely a life-changing decision that can have an enormous impact on your future.
To help you prepare for this major undertaking, we offer the following tips:
Do your due diligence
In business, location is everything. But in commercial real estate, location is also an essential factor in the total cost. Prime properties naturally cost more, but they’re not your only options. More affordable real estate in less sought-after locations may very well suit your investment goals too. Weigh the pros and cons of apotential property, and see if it’s worth investing in.
Additionally, whether you’re buying a new or used building, hire a professional to check the condition of the structure. To iron out legal issues, get the assistance of an attorney.
Be sure you understand the commitment involved
Here are some of the questions you should ask yourself before buying a commercial property:
- What type of property am I looking for?
- For what purpose should I buy the property for? Is it to lease it out, use it for my own business, or build equity?
- Do I have the capacity to buy it on my own or do I need to partner with someone else?
- Do I really have to buy or would leasing be the better option?
- How much risk am I allowed to absorb?
- Do I have the kind of experience needed to make an investment of this magnitude?
Knowing the answers to these questions willhelp you arrive at the right decision.
Know the market
Buying commercial property in a buyer’s market or a seller’s market can have a direct impact on the price. When it’s a buyer’s market, you can potentially save on costs because you get more opportunities to negotiate down the asking price. The opposite is true when it’s a seller’s market, when the demand is greater than the inventory.
Don’t hesitate to get help
As in any other high-value investment, it takes plenty of courage to risk your hard-earned money in commercial real estate, regardless of the potential for huge returns.If you have no experience in this field, don’t be afraid to solicit the help of experts – whetherthey are lawyers, real estate agents, and accountants.
If you’re a small businessthat’s looking to grow, is it a good decision to buy your own office or building? In Texas, it most likely is. Not only is commercial property a great investment that canyield good returns for years to come, you also get excellent incentives. Texas is dedicated to helping small businesses, and one of the incentives offered in the state is potential for property tax abatements. This exempts business owners from taxes on the increased value of their property (and other tangible assets) for a given period.
You can also use your property as collateral when you need a fresh infusion of capital. Finally, you don’t haveto answer to a landlord when you do decide to make some renovations on the property.
Invest in commercial real estate in Texas. We can help you find the right property in Dumas, Sunray, or any other part of Moore County. Call us at 806.930.8888 (Cheryl) or 806.884.8769 (Jayme), or get in touch with us here.