As an investor, you should always be on the lookout for valuable commercial real estate to grow your portfolio. Whether you want to lease units to multiple tenants or wait for one lucrative renter should motivate decisions on what properties to acquire. The following guide will walk you through the buying process.

How to Buy Commercial Real Estate

1. Secure Financing

Many investors apply for loans to finance real estate deals. Conduct business and personal credit checks before reaching out to lenders. For example, your personal credit score must be at least 600 to qualify for a commercial real estate loan.

In addition to credit history, a lender will review your business and personal tax returns with the application. After the credit check, you should address any debts or oversights to raise your score and the chance of loan approval.   

2. Research Property Histories 

Ask your real estate agent to learn what they can about the history of the property. You can also reach out to the seller directly for details.

Find out how the building was used in the past. This will provide ideas on how you should utilize the space and what zoning concerns you might need to tackle to achieve your objectives.

Knowing leasing information and the building’s annual revenue will help you determine how much to charge renters. You should also find out property tax information and the cost of utilities. Begin setting aside money in the budget to pay for these costs.

3. Work With Knowledgeable Professionals

You should consult with an accountant before completing the transaction. They will review tax documents and make sure all the information is accurate.

A real estate attorney will help you create a legal entity to be included in contracts. Doing so will limit your personal liability. Also, a real estate broker will help you negotiate the purchase price and reach an agreement. These professionals have your best interests in mind and will ensure the transaction goes smoothly.

To buy or sell commercial real estate in New York City, contact Jeffrey Anderson, Associate Broker, Capital Real Estate Advisers. With an extensive background in architecture and urban design, this realtor will find valuable properties in established and up-and-coming neighborhoods. Learn more about Anderson’s credentials online, or call (917) 568-9642 to start expanding your portfolio.