I want to invest in Commercial property. What should I watch-out for?

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I intend to buy commercial property such as a shop in a mall, a warehouse or any other realestate property. I intend to rent it out.

I have never bought commercial property , what are the thingsd I need to watch out for? which are good places to look for such properties? Please advise.

 

I am thinking of buying in Jacksonville Florida.

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Rainmaker
35,385
George Thoma
Mann Mortgage / Hawaii - Maui (NMLS 2550) - Wailea, HI
Mortgage Pro in Hawaii VA,USDA,FHA

Have a Realtor , and talk to your local Bank 

Nov 07, 2008 05:48 AM #1
Rainer
5,753
Greg Bell
Bell Inspection Service - Titusville, FL

A good Commercial Inspector will save you time and money.

 

I would suggest that you look for properties that are in good condition. Properties that are fairly new so that they meet the ADA requirements. Look for properties that don't have safety and liability concerns. I can't tell you how many I have inspected where the buyer was assuming a great deal of liability.

 

Consider the hurricane features of each potential building as that will reduce your insurance costs each year.

 

Good Luck

Nov 07, 2008 05:55 AM #2
Rainmaker
1,400,850
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

Be sure you have a knowledgable commercial realtor and not a residential realtor that thinks they will make BIG BUCKS selling commercial....and determine your goals...a triple net...an active ownership of a business...a landlord...what kind of return in how long....Do some research first on ROI and see if commercial real estate is a good fit for your financial plan.

Nov 07, 2008 06:15 AM #3
Ambassador
562,181
Julie Chapman
Lennar - Jacksonville, FL
New Homes Sales

Why not buy a building already 100% occupied with a rental history?

- getting real numbers on income and expenses would be my greatest interest along with building condition.....you need someone who is experienced not just in commercial real estate but in the area in which you are purchasing. 

Good luck......

Nov 07, 2008 07:14 AM #4
Rainmaker
894,258
Michael Setunsky
Michael's Commercial LLC - Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Nadeem, I would suggest you look at properties that are income producing and already occupied. Analyze the financials to determine if your return on investment is better than putting your money in a CD, etc. The type of property to invest in will depend on your financial resources. Lastly, find a commercial broker who can help you analyze the numbers and find you a property that will fit your situation. Good Luck!

Nov 07, 2008 07:45 AM #5
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Rainer
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NADEEM IQBAL

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