Acquiring Real Property
Acquiring Real Property
Buying commercial real estate can be a complicated process, but it does not have to be. Thorough research and hiring qualified professionals can help streamline an otherwise difficult transaction and protect against potential liability and hidden problems. Although there is always some level of risk associated with purchasing property, many common pitfalls can be avoided by considering the items listed below.
Location, Location, Location
For as much emphasis as we put on where we buy property, it is important to remember that the character of any area can change. Because of this, while an area may be hot at the moment, consider researching businesses that may be moving in or developing in the area, as well as those which may be planning to move in the future. Also check current or future municipal plans, such as pending proposals for re-zoning certain areas, or if there are plans for schools, parks, or special housing developments.
Liquidity Concerns for Businesses
Buying property for your business can save lots of money through control over overhead costs. Also, by purchasing the property, your business or portfolio may also acquire an asset that will (ideally) appreciate over time. That said, if you are going to make this large investment it is critical to make sure you are not tying up too much of your business’ liquidity in real estate.
Plan on Investing Not Only Money, but Time
Not only will you need to spend a lot of time doing due diligence before buying property, but you will want to be or have to be hands-on after the purchase. Particularly if you are buying commercial property that will have to be let to other tenants, make sure to make frequent site visits and schedule routine inspections.
Team of Experts
In addition to an experienced real estate attorney who can help advise you and protect your interests, consider working with a knowledgeable real estate expert who can help you analyze real estate market trends and other pertinent issues, as well as a tax expert who can outline and help navigate the tax implications associated with owning commercial real estate.
Ezer Williamson Law provides a wide range of both transactional and litigation services to individuals and businesses. Contact us at (310) 277-7747 to see how we can help you with your business law concerns.