Steps to a Great Commercial Real Estate Deal in 2018
What Makes A Commercial Real Estate Deal Great?
2018 is shaping up to be another strong year for the commercial real estate market in South Florida, with continued economic and population growth projected in several cities including Fort Lauderdale.
If you are planning a commercial real estate deal in South Florida this year, you’ll want the advice of an experienced South Florida commercial real estate attorney to ensure that you are making the right decision.
Below are some tips to also help you find the perfect commercial real estate investment this year.
Plan for your investment
Don’t jump into buying commercial real estate without a solid plan. Get accurate numbers for your mortgage, the potential income for the property, maintenance expenses, repairs, and other costs involved to make sure it’s a financially viable decision.
You’ll need to determine an accurate valuation of the property, how many tenants are currently on board and what they are paying each month, and the estimated total cost of your investment over the life of your mortgage.
This is where meeting with an expert can prove to be helpful if you have limited experience.
Put together a professional team
By working with an experienced lender, commercial real estate attorney in Fort Lauderdale, accountant and broker, you’ll have the professional team that you need for advice as your deal moves forward.
You will likely have questions about zoning, neighborhoods, future property values, tax implications, property management requirements and several other issues that your team can assist you with.
Research each neighborhood
You probably already know that location is one of the most important factors for any commercial real estate investment.
Environmental factors such as the neighborhood, nearby attractions, crime rates, employment opportunities and future anticipated population growth will all have an influence on the value of your investment in the future.
Try to find up and coming neighborhoods where others are also investing. Try to anticipate where the area will be in 3 to 5 years – are the factors in place to keep the population there and the demand high?
Have an exit strategy
Sometimes commercial real estate investments don’t go as planned; so, you’ll need to have an exit strategy to at least break even on your deal, return money to any investors and minimize any losses.
Meeting with a Fort Lauderdale commercial real estate attorney is always advisable when planning your next commercial real estate transaction. Mark Schecter at Schecter Law can answer any questions about the South Florida commercial real estate market and the best opportunities for investment this year. Contact Schecter Law today at (954) 779-7009 to learn more.