As you probably know, real estate is an investment that’s worth every penny later on down the road. You only have to remember the legendary story of Ray Kroc and McDonalds. (Some say Mr. Kroc cheated the McDonald family out of a fortune. That’s an issue for another day.) The fact is, Ray Kroc’s investment turned McDonalds into a global-wide franchise. He proves that investing big yields big results.
You could be a rookie entrepreneur searching for the headquarter office of your first start-up. Or maybe you have a few years of experience under your belt and are looking to expand your business. Whatever your history, here are several principles for buying office space when you’re short for time.
- Build Your Team
Unless you yourself are already trained in one of the following professions, hire these experts for your real estate team:
- An accountant will analyse your finances (and operating budget) and figure out what your business can afford.
- Lawyers complete transactions, and act as a negotiator between seller and lenders for you.
- Commercial brokers “sniff out” hot properties on the market as they appear while keeping your budget in mind
- Mortgage brokers (or lenders) sort through possible financial options (such as bank loans).
Commercial brokers are one of the key players here. They are directly responsible for helping you finding your next investment property in commercial real estate marketing, in the shortest time possible.
- Identify the Right Office
You know the adage: “Location, Location, Location.” Obviously, it’s important to choose office space that’s close to your customers, your employees, your home, etc. This will certainly make it easier for everyone involved with your company.
The next issue is to analyse the building’s physical condition. Look for visible signs of wear and tear, making notes of environmental issues or possible liability issues (like lead paint or asbestos).
Next, it is crucial to double-check your area’s zoning laws. One of my partners wanted to build a residential manor (which was next to a school) on the other end of our town. He was looking at a building complex he could flip. Soon, the city told him that he wasn’t permitted to open the residential manor.
- Small Business Loan
In many cases, realtors and real estate agents are weighing various buyers’ bids. Sadly, there has never been a truer maxim in our world today than “the highest bidder wins.” Therefore, if you plan to play the bidding race, it’s advisable to seek out a small business loan. The U.S. Small Business Administration (SBA) has a 504 Loan Program. (Some programs can lend you anywhere from $500 to $5.5 million.) The proceeds from 504 Loans can be used to purchase existing buildings, land purchases and land improvements, new facility construction, and refinancing of debt (in connection to business expansion).
Yes: buying commercial, industrial or residential real estate is a huge undertaking. It is a highly competitive industry, filled with unforeseeable risks that. However, it’s important to keep the prize in mind: your booming business expansion.
And if you have to, it’s well worth thinking outside of the box (and building your online marketing skills). Rather than constructing a new building from scratch, a city-renown dentist in my town purchased a 3-story home from a family for her business. She told me that she saved hundreds of thousands of dollars in doing so.