You cannot go anywhere nowadays, without somebody offering you their advice about Commercial property.
And it’s hard to know whether they are giving you good information, or just passing on ideas they have picked up on from rather dubious sources.
But once you understand that Commercial property and Residential property completely different, you then begin to understand how the commercial market actually works.
That’s why these articles are intended to give you the real information — to help you become an expert on the subject.
So let’s start with doing homework properly.
Due Diligence is Vital before you go “Unconditional”
As part of your purchase proposal, you should allow a certain amount of time to carry out your due diligence.
Generally, you will undertake a detailed property inspection, an appraisal and any other inspections related to the local laws. And unless you have the right contacts, this can become rather expensive.
However, you should always include the money you need to spend on due diligence as part of your initial financial analysis for each property — as there will be times you’ll need to forfeit those funds, if you discover a particular property is not worth pursuing.
You simply need to consider this as part of your business investment. And realise that it’s always smarter to walk away from their property — even though you may have already invested some money in undertaking the due diligence.
This is when due diligence can prove to be very cheap insurance against making a major mistake.
Also, having a mentor can be of tremendous help when considering Commercial property investment.
Mentors can second-guess what you’re doing; and will look to see if you have missed any due diligence items. Plus, your mentor can also connect you with many resources you may otherwise not have at your fingertips.
Bottom Line: You need to be aware of the pitfalls associated with any type of real estate — but with Commercial property, there are a few extra steps involved to ensure your success. And more often than not, having a mentor will help save you from making any unnecessary mistakes.
If you wish, you can read more about a number of other key aspects of Commercial property investing.