3 Commercial Real Estate Buying Tips from Carolyn Capalbo
Are you interested in commercial real estate, but you don’t know where to start? If so, then you’re not alone. Many individuals – even those who have purchased residential real estate on many occasions – find that purchasing commercial real estate is a bit more stressful – but it doesn’t have to be!
Carolyn Capalbo, a high-profile REALTOR based in Virginia, has plenty of ideas to make your next commercial real estate transaction a smoother one. Carolyn Capalbo, who has extensive experience in both the residential and commercial real estate market, lists three, main factors to consider when buying commercial real estate: Don’t let the idea of commercial real estate intimidate you! Let Carolyn Capalbo help guide you through the process!
Here are Carolyn Capalbo’s top three commercial real estate buying tips:
1. Understand the purpose of your purchase – What you decide to do with your piece of commercial real estate will largely dictate what tactics you will employ during the purchasing process. For example, your game plan will be decidedly different if you plan on purchasing commercial real estate for your own use versus purchasing commercial real estate to lease out to other companies or businesses. For example, if you plan on leasing the space out, you will need to consider how much you can charge and how much your overhead will be before deciding if the investment will yield you a healthy return.
2. Understand the complexity of commercial real estate loans – Purchasing commercial real estate comes with its share of challenges; particularly because lenders see this type of purchase as being much more risky than residential purchases. Therefore, you will need to expect that securing a commercial real estate loan will be decidedly more difficult than a residential real estate loan. Commercial real estate loans may also come with charges such as prepayment penalties and large fees for late or missed payments, so it pays to research the commercial real estate loan industry before jumping in with both feet.
3. Hire a commercial real estate professional – Although you may have successfully negotiated and purchased residential real estate by yourself in the past, you will need to understand that, because commercial real estate is an entirely different entity, that you will need the assistance of both a commercial real estate agent and a real estate attorney. It is imperative that you have the backing of commercial real estate professionals so that you fully understand the entire process that is involved with purchasing commercial real estate.
