Want to Jump into Commercial Property Investing? Here are the ESSENTIAL People you Need on Your Team
Purchasing a commercial property is a significant investment, and it’s not something that you should do alone. While there are several factors to consider, from the location of the property to the condition of the building, your first important decision should be how to assemble the best team to help you navigate the investment journey.
It’s so important to consult with professionals who have experience in the commercial real estate market before you even start looking for property. They can help you assess the risks and potential rewards of the purchase and help you negotiate to get the best possible price.
While it may be tempting to try to go it alone, working with a professional team is the best way to ensure a successful purchase.
So, here are the essential professionals you need on your team.
1. Property Mentor
When it comes to investing in commercial property, it pays to have a mentor on your team. A mentor can provide valuable guidance and advice, helping you navigate the complexities of the market and make informed decisions about your investment.
They can also introduce you to key contacts and resources, giving you a leg up in the competitive world of commercial real estate. Finally, and perhaps most importantly, a mentor can offer an objective perspective, providing a sounding board for your ideas and helping you to avoid making costly mistakes.
A paid adviser, such as a buyer’s agent, can also act as a mentor (see discussion below).
2. Finance Broker
Having a mortgage broker help you navigate the complex world of lending is essential for any property purchase … But even more so when it comes to investments. Unfortunately, far too many property investors underestimate how a property loan can impact the success of their investments.
So, if you want to maximise the return on your investment, have a finance broker help you find the best loan product for your financial circumstances and investment objectives. Ideally, you need a finance broker or bank manager with extensive commercial lending experience.
Unfortunately, some finance brokers won’t necessarily have your best interests in mind. So, do your due diligence here. A good broker will be able to tell you the shortcomings of different deals – such as the break costs of a lower interest rate deal – and why and when to avoid these, depending on your strategy.
They should focus on your agenda, not theirs.
3. Accountant
When it comes to commercial real estate investing, having an accountant on your team is essential. This is because real estate can be a complex asset class, and several tax considerations need to be considered.
An accountant can help you maximise your deductions and minimise your tax liability. In addition, an accountant can provide valuable insights into the financials of a potential property, allowing you to make sound investment decisions.
Ultimately, you want your accountant to advise you on which structure is best for buying each property, depending on its purpose and cash flow.
4. Buyer’s Agent
When it comes to investing in commercial property, having a buyer's agent on your team can be extremely beneficial. A buyer's agent is a real estate professional who represents the buyer's interests in a transaction.
They can help negotiate the purchase price, terms of the contract, and other details of the deal. In addition, a buyer's agent can offer guidance and advice throughout the process, helping to ensure that you make a wise investment.
With their knowledge and expertise, a buyer's agent can be an invaluable asset when purchasing commercial property.
5. Solicitor
There are a lot of factors to consider before signing on the dotted line. This is where having a solicitor on your team can be extremely beneficial.
A solicitor can help to identify any potential risks associated with the property and, among other things, negotiate favourable terms for the lease. They can also provide expert advice on planning permission and building regulations.
However, you must have a highly competent property solicitor who is experienced in commercial property acquisition, leasing and due diligence.
6. Property Manager
There are many reasons you should consider hiring a property manager when investing in commercial property. First, a property manager can save you time and money by handling the day-to-day operations of your property, such as marketing vacant units, collecting rent, and responding to tenant requests.
They can also help you maximise your profits by carefully monitoring expenses and keeping your property in good condition. In addition, a property manager can provide valuable insights into the local market, helping you make informed decisions about rent rates and capital improvements.
By working with a property manager, you can focus on your long-term investment goals and leave the day-to-day management of your property in capable hands.
7. Town Planner
Town planners bring a wealth of knowledge and experience to the table, and they can provide invaluable insights into the best way to develop a piece of property.
A town planner can provide valuable insights into zoning regulations, building codes, and other factors that can impact the development of your property. They can also help you identify potential problems and opportunities that you may not have considered. In addition, a town planner can serve as a valuable advocate for your interests when dealing with local government officials.
So if you’re looking into value-add projects like developments, subdivisions or renovations, town planners can be an essential asset to your team.
8. Property Valuer
A property valuer is a professional who assesses the value of a piece of real estate. When investing in commercial property, it is important to have a property valuer on your team to ensure that you are paying a fair price for the property.
A property valuer will consider factors such as the condition of the property, its location, and recent comparable sales in the area to arrive at an accurate estimate of the property's value.
This information is essential in negotiating a purchase price for the property.
Key Takeaways
When it comes to investing in commercial property, it is important to have a skilled team of advisers on your side. Commercial property investment is a complex process, and there are several factors to consider before making any decisions. An experienced team of advisers can help you navigate the process, identify potential risks and opportunities, and make the best decisions for your investment.
In addition, your team will be able to provide you with valuable market insights and advice on how to maximise your return on investment. So, if you are thinking about investing in commercial property, start by assembling your team. Then you can jump in and start looking for investment properties!
If you would like to know more about how I have helped thousands of clients successfully source and purchase quality commercial property across the country, get in touch today.