Everyone wants to save a few bucks whenever possible. While the rise of the do-it-yourself approach has helped non-experts to execute things on their own, does the mindset apply when you have decided to invest in commercial property?
Let us find out the answer by first understanding the importance of an experienced commercial broker.
An Excellent Commercial Broker and its Value
Not every state in the US conducts real estate transactions in the same way. Commercial brokers have experienced professionals that help facilitate all dealings associated with the search, negotiations, identification, successful closings of the deal, and transfer of property. How they perform is often contingent upon their insider local market knowledge, including but not limited to:
- Municipal and private developments in the works
- The network of strong third-party resources
- Understanding of transaction processes
- Use of commercial real estate contract language to get that negotiating edge
- Strength of peer relationships
The Due Diligence Speaks for Itself
Negotiations do not happen for novice investors in real estate when all parties fully execute the purchase contract. What you want to know is that it is a step-by-step roadmap full of traps. While you may anticipate some ahead of time, the dangerous ones come when you least expect them.
An expert commercial property broker can create an intent that the seller cannot overlook. In fact, it can spur a conversation between buyers and listing brokers instantly. This conversation may uncover hot points.
Now imagine that you are an investor without representation. Could you know what you have missed? The ins and outs of commercial property transactions can be arduous, especially during the process of due diligence. Some of them include:
- Why do the sellers want to sell the property
- Site research about property use
- Environmental hazards
- Current market rents and value
- Proof of rent rolls, net operating income, cap rates, and operating costs
- Zoning and difficulty getting a variance if required
- Recent city code changes that could affect property condition
- Buzz on the street among other brokers
- Details about the neighborhood
Can you imagine the pressure of the task? Maybe you do not want to do it on your own. This is where you may need professional assistance to get the ball rolling.
Mastering the Art of Timing
A purchase contract entails the intricacies of what is expected, the deadline, and remedies to solve an issue or when a party deems it important. Believe it or not, a commercial brokerage firm can represent an investor’s best interests.
If you want to ensure you have chosen the right property for your needs, ask for a lengthier inspection period. Thus, you can have access to a larger window of opportunities to discover issues that may present concerns.
Leave the Risky Job of Walking the Slippery Road to the Professionals
Commercial brokers are bound to abide by a Code of Ethics that stipulates the need to serve clients best by introducing them to industry professionals who specialize in a specific niche.
You do not perform surgery on your own. So then, why would you consider investing in property without the right experience or through buyer representation? That does not make sense at all.
Experience is the secret weapon in commercial real estate investment success. Unfortunately, you cannot learn much from online how-to content and have adequate knowledge about investing in commercial real estate overnight. Instead, leave the job to a professional and experienced investing group like WealthBCI. We will do all the due diligence on your behalf. Contact us today.