Commercial real estate developers are familiar with the myriad issues they must resolve before finalizing a sale. However, if you are acquiring your first property, you should understand your purchase’s specific financial and legal requirements.
Therefore, it is essential to take these steps when buying a commercial property in Florida.
Establish a budget
Setting a budget is critical for ensuring an affordable and profitable investment. Create a list of potential expenses and leave room for renovations and taxes in your budget after securing the final purchase prices. This step will also help you determine the financing options you should consider.
Check local zoning requirements
Confirm that your plans agree with the zoning requirements when buying a commercial property. Local governments provide allowable uses under specific zoning categories that do not require special approvals. However, if you plan to acquire a property for other purposes, you will need to obtain a variance or waiver.
Obtain a renovation estimate
Consider hiring a contractor who can offer you a restoration estimate before finalizing a property purchase. This step will ensure you do not exceed your overall budget and may save you numerous unnecessary complications and expenses after closing.
Perform a title search
Claims or liens on a property you intend to purchase can derail your plans. Therefore every commercial investor can benefit from a title search that confirms a property’s legal ownership or reveals liens, unpaid taxes or encumbrances.
Investing in commercial real estate in Florida can be very profitable but requires thoughtful planning and consideration to reduce potential risks.
