Consider These 3 Important Factors Before Purchasing Your First Real Estate Property

Everyone at some point has dreams of becoming an entrepreneur or small business owner. If you’ve finally decided to take the big step of owning your own business, you’ll need to know the ins and outs of buying your first commercial property. Doing so can help you avoid the headaches involved in buying, leasing, choosing a location and making the purchase.

Avoid any possible disputes when buying or renting a commercial property by having our real estate lawyers help you today!

Should I Buy or Rent?

After deciding to become a small business owner, you’ll have to ask yourself if you’ll want to buy or rent. There are many risks in buying, and the last thing you’ll want to realize is that you may be better off renting. When buying, small business owners can run into risks such as:

  • Location – Always keep in mind that even the most picture-perfect neighborhood may not be a good fit for your business. Never forget the market you’re in. Also, what looks like a great and profitable spot today may not be one tomorrow. Always look ahead to the future to see if a location is best suited to your commercial needs and if you want to make the long investment of staying there.
  • Keep liquidity – One mistake many make when buying a commercial property is using too much liquidity in purchasing real estate. Selling real estate can be challenging, especially during a rough market. Having some liquidity will give you the opportunity to use cash in order to revive a lagging business.
  • Beware of weak cash flows – Customers sometimes pass on a purchase, tenants sometimes don’t pay their rent and buildings sometimes need repairs. The truth is, your cash flow can become weak in an instant should you be forced to pay for repairs or fees when dealing with a tenant situation. Always keep this in mind and plan ahead for the unexpected, especially if you plan to buy since you’ll be responsible for these costs.

Your Real Estate Dream Team

Real estate lawyers that can help you through the entire process of buying or renting a commercial property are essential to being successful. This is why it’s extremely important to surround yourself with people who know the field. Who should be part of your dream team? Consider the following:

  • Real estate lawyers – Ours can help with avoiding possible lawsuits and negotiate with the seller.
  • Accountants – These will discover if you can afford to venture into the small business world or not.
  • Commercial brokers – These can help you find great areas for your business.

Finding the Right Area

It’s easy to drive down the busiest downtown sector and decide to buy a property rich in commercial potential. There are a number of factors to consider, however. What’s the property’s condition? Does the area experience year-round commercial popularity? Is the property in compliance with state and local laws? All of these are very important to keep in mind, and our lawyers can help you with the process.

Our Real Estate Lawyers Can Help

Many of us have heard stories of small businesses shutting down because the market wasn’t what it was expected to be and other various problems. Avoid having to deal with uncertainties and contact our real estate lawyers in McAllen today to get started!

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