How to Buy Commercial Property

f you are considering buying commercial property, you might have a large amount of your income at stake. You might want to buy an office or other building for your current business, rather than continuing to pay rent for a space. Or perhaps you want to strike out on a new business venture and want to purchase property to start out on. You may also wish to buy property that you can then rent or lease out, such as apartments. No matter the reason, you have many factors to take in while making this weighty decision.

Instructions
Take stock. You need to know how much cash you have available to put down on a piece of commercial property. This will help you determine your budget for the property. Typically you will need to have at least 20 percent of the sale price on hand to put as your down payment.
Give yourself plenty of time. Even if you have a wad of cash in your pocket and the perfect place already picked out, the process can take time. With commercial property there are many factors to consider in the negotiation process, such as appraisals, safety codes, environmental issues and more. This process can take up to a year or more.
Find a real estate broker or agent. A professional will be able to help you search out the perfect piece of property, as well as walk you through all of the ins and outs of the process. Talk to other business owners that you trust and respect, and ask them for recommendations.
Take time to pick the right piece of property for your business needs. Consider how much time and money you want to put into the initial fix up or changes as well as day-to-day upkeep. Think about how many employees you have, and determine how many bathrooms you will require and whether you need some sort of kitchen. Find out about average utility and other monthly, quarterly or annual bills you will encounter.
Have the property inspected and appraised before you make any type of offer or deal. Find out about past repairs and problems, and whether any type of warranty will be made available. This is a major investment, so you really need to protect yourself.

Tips & Warnings
• Consider pooling your money with someone needing similar space and sharing the property. This might allow you more or better property.
• Take into account any laws or regulations for your type of business. For example, if you wanted to open an elder care home, would you need to install a sprinkler system? Forgetting to factor in these costs could get you in over your head.