As South Florida’s real estate market attempts to rebound, there is a large supply of commercial properties available for purchase. While many are ready to go, other properties have been left unfinished and require more building to complete.
For the most part, the stall in building can be attributed to the real estate market crash and frozen credit lines. When the capital stopped flowing, builders were forced to halt several commercial building projects indefinitely.
When you purchase an unfinished commercial property, you can save a substantial amount of money. This can help keep your monthly mortgage payments low and enable you to secure a property you otherwise could not afford.
Investing in unfinished properties can be tricky as well. Before you invest, it is important that you thoroughly research the property and determine what is needed to finalize the building. Mandatory repairs may include new plumbing, wiring, roofing, framing or all of the above. If you know beforehand the costs associated with finishing the property, you can decide if the investment is worthwhile for you
If you are considering buying an unfinished commercial property, you may want to confirm with your bank or lending institution that the property, in its unfinished condition, is eligible for a loan. As lending remains tight, banks have strict criteria for deciding which properties they will finance. In most situations, lenders require that the property complies with the local building codes and is in a condition that will allow you to start occupying the property right away. If the property is lacking a lot in its unfinished state, the bank may deny your application for a loan. It is imperative that you check with you lender before investing in an unfinished commercial property.
Buying an unfinished property can provide a good way to acquire prime commercial real estate at a fraction of its value. In this market, builders are looking to get rid of unfinished real estate they are holding on to. If you do your research you can find a property that’s suitable for you.
If you are interested in buying an unfinished commercial property in South Florida, you should speak with our real estate attorneys as soon as possible. They can help you negotiate with builders and help you secure a loan to purchase the property. In no time, you can have the commercial real estate you’ve dreamt of and save money in the process.
