Commercial real estate (CRE) can be a lucrative addition to any investment portfolio. In a place like Miami where national and global businesses are flocking in droves, the opportunity to capitalize on a CRE investment is ripe for the picking.
Before snatching up just any property, however, it’s important to be prepared. Like all things, the more you know heading into a decision as big as purchasing commercial real estate, the more successful you are likely to be with your investment.
Important Considerations Prior to Investing in CRE
Whether it’s your first, fifth or fiftieth foray into commercial real estate, it’s advisable to spend some time thinking through these things before making an offer on a given property.
- Your motivations – A CRE investment should align with your overall investment strategy, and there should be a “why” behind the “what.” Are you planning to occupy the building yourself with your own business, or are you seeking a development opportunity? There are many common real estate investing strategies, including land banking, fix and flip (yes this exists in commercial – perhaps moreso than in residential), wholesaling, and others. Determining your goals prior to starting a property search will help focus your search and refine your priorities.
- Your team – Aligning yourself with the right team of experts is critical to securing the perfect property and avoiding any potential problems along the way. That means having a real estate attorney on board, as well as a CPA, mortgage broker, contractor and commercial realtor.
- Your financing – Assess how you plan to finance your investment and if you plan to use more than one source of funding for the deal. If you will be taking out a commercial real estate loan, make plans to get pre-approved before making any offers. If you will be working with equity partners, start those conversations today.
These and many other factors should be well thought out before moving forward with a commercial real estate investment in Miami. If you’d like to speak with a local real estate attorney who is well-versed in the South Florida market and real estate law, please get in touch with our team at the Law Offices of Alex D. Sirulnik, P.A. and ADS Title Services, Inc. We are here to advise you on the best ways to maximize your commercial real estate investment.