7 Things To Consider When Buying Property For Your Business

At some point in your business’s development, you may need an office space, a retail storefront, a warehouse, or even an entire factory. You may even want a building to sublet to tenants, or a place to call your headquarters.

Whatever your motivation, you’ll be interested in buying property for business, but before you pull the trigger, you’ll need to keep some key considerations in mind.

Before you buy property, prepare yourself with these concepts:

1. Understand the risks.

No matter what, buying a property on behalf of your business is a risk. If you’re fronting your own money or relying on money from a bank, you could lose that stake if the property is damaged or if something goes wrong with your plan. Additionally, there are specific risks to consider with each type of property you might buy; a retail location may not be as popular in a few years, or your factory may be subject to new regulations on the horizon.

2. Read up on mistakes.

There are many ways to make a bad property deal, so it pays to read up on the mistakes of others. Noticing where other investors have gone wrong can make you hyper-aware of red flags in your current deal, and possibly make the difference between a deal you regret and one that makes you a serious profit.

3. Work with an agent.

Even if you feel like you have a knack for real estate, or if you’d prefer to do the bulk of the work on your own, it pays to work with a real estate agent. Real estate agents are much more familiar with the property sale dynamics in your location, and they’ll probably have access to far more properties than you could find on your own. They’ll also be able to spot better deals, and can provide you with insights you might have otherwise neglected.

4. Define what makes a “good” deal.

What counts as a “good” deal to you may not count as a good deal to someone else. While one entrepreneur may be focused exclusively on buying a property within budget and in decent shape, another might have a strong need to choose a good location — no matter how much it costs. Before you even start looking for properties, make a sketch of a deal you think would be acceptable, and one you think would be ideal. This will help you make better decisions in the moment.

5. Consider ongoing maintenance.

You should consider more than just the purchase price and the potential revenue-generating potential of your property; you’ll also need to consider the ongoing maintenance costs. For example, does this property require intensive seasonal maintenance, or periodic upgrades? Will you be handling this with an in-house position, or outsourcing it to another business? How much will it cost? These factors can seriously contribute to your overall profitability, so make sure they’re factors in your calculations.

6. Find decent financing.

You’ll be exposed to far less risk if you at least partially finance the purchase, and you’ll even have an investment advantage thanks to financial leverage. It makes sense to invest with money that’s not yours, so long as you’re able to secure a good interest rate and favorable terms. Make sure your credit is in good shape before you make the purchase, and negotiate hard for the best deal you can get; these efforts can save you hundreds, if not thousands of dollars a month.

7. Have an exit strategy.

Finally, have some kind of exit strategy in place before you purchase the property, so you can make a more logical decision for what type of property to buy. For example, if you plan on owning the property for a fixed number of years, you can aim to buy a property in a neighborhood with a promising growth trajectory for the near future.

Protecting Your Investment.

Even if the physical building or property you’ve created is only one small aspect of your business, you still need to treat it like a significant investment. That means getting a good insurance policy in place for your property and keeping it as up-to-date as possible. It’s practically impossible to land a “perfect” deal, or completely protect your property from harm or depreciation, but with the preceding considerations in mind, you can dramatically increase the quality of your decision.

Share



from Young Upstarts http://bit.ly/2AesIGp

Comments

Post a Comment

Popular posts from this blog

How To Promote Your Grand Opening

Image
Your business grand opening will be one of the most important — and memorable days — of your career as a business owner. You’ll always remember how much effort you put into it, and what your turnout was like. And there are plenty of reasons why a successful grand opening is so important: if done correctly, it can invoke curiosity and excitement among consumers, and set the tone for the future. Fortunately, there are several ways you can ensure that you make the most out of your grand opening. Here are some promotional tips you should consider: Give Out Free Samples. Of course, whether you’re able to do this depends on the type of product or service you offer, however, giving out free samples is a good way to start to build buzz around your grand opening. For example, if you were just opening a local coffee shop, you might set up a kiosk with small cups of coffee and engaging coffee-inspired cutouts for photos. Then, you’d hand each person who accepted a sample a flyer (or QR code)...
Read more

13 Important Branding Lessons From The Top 4 e-Commerce Giants

Image
by Katie Lundin of  crowdspring Simply showing up online with a business website isn’t enough to guarantee success. E-Commerce giants Apple, eBay, Craigslist, and Etsy seem to have cracked the code. Together, they brought in total revenues of over $275 billion in 2018. They are successful businesses and successful brands . You may notice some notable companies missing from our list. I recently wrote about 19 important branding lessons from the top 5 U.S. retailers , including Amazon and Walmart. The most successful e-commerce businesses know that their brand identity and brand is everything . We’ve studied what these 4 e-commerce brands are doing right and cultivated a list of 13 actionable branding lessons that can help your business. eBay. Evolve to stay relevant. In today’s fast-paced digital world, technologies and trends often become obsolete before we’ve even had a chance to understand them. Online businesses that stand the test of time are relatively rare. And, th...
Read more

Improve Your Marketing In 2020

Image
A brand new year is a fresh opportunity to take your business to new heights. You may have achieved a few of your business goals in 2019, and that’s amazing, now let’s ensure you keep that momentum going! When it comes to marketing, strategies are evolving all of the time. To get you off to a good start in 2020, make sure to put these four on your to-do-list. 1 . Try Influencers. If you haven’t leveraged the awesome power of influencers yet, make 2020 the year that you give it a try. As a business, you want to gain the trust and loyalty of your target audience. If you find the right influencer, they’ll already have that trust, ready and waiting for you to tap into. Influencers have plenty of followers who admire them and will listen carefully to their recommendations. What’s more, they know how to present the mention of your business as authentic within their content. Such tactics are highly effective because the audience does not feel as though your business is pushing a sale. Wh...
Read more