Purchasing commercial real estate anywhere can be complex and costly—and this is especially true in a popular Californian market like Santa Barbara. When it comes to purchasing commercial real estate, it’s vital to be as prepared as possible beforehand. With the following five tips, you’re sure to navigate the entire process with ease.
Determine your motivation
Before you begin your search for Santa Barbara commercial real estate, you’ll need to know exactly what kind of commercial real estate property you’re after. Will you be utilizing the property for your own business or renting it out to other small business owners? Your options will vary depending on if you want to open a restaurant, lodging, or retail business. Take note of the additional costs to get the property up to speed in terms of zoning and construction.
Another important factor to keep top of mind is if the property is affordable and how does it offer a return on investment? Buying a property simply because of its affordability may be short-sighted. A property may appear to be in a stellar location with ample foot traffic, but if it’s not going to work for your specific business, then it may not be as affordable as it seems. Make sure your motivations for purchasing a specific property are in line with making the property work for you and your business.
Get prepared financially
Before going to speak with a real estate professional, you should speak to your accountant or a financial professional to determine your available funds for the purchase. Make sure you have the necessary funds to make the down payment required for a commercial space. Additionally, you’ll want to determine the best options for making the down payment. For example, consider if you’ll use equity from another property or pay the down payment outright.
In the same way that you would prepare financial documents for a home purchase, you should do the same with your commercial property. Arguably, you’ll need to have an even more solid understanding of your financials for commercial property as you’ll not only need to purchase the property but make sure it is zoned properly for the business you intend to run. Before speaking with a real estate professional and once you have your financial ducks in a row, reach out to a mortgage lender to secure pre-approval.
Talk to Santa Barbara real estate professionals
Investing in your first commercial real estate property can be a daunting task. There are a number of individuals with whom you’ll need to do business during your commercial real estate transaction. Once you’ve spoken with your financial advisor about the available funds for the transaction, and secured pre-approval with a mortgage lender, you can begin searching for commercial property for sale in Santa Barbara or Ventura with your budget in mind.
Consider location
One of the most important facets of owning a business is the location. A restaurant, shop, or commercial real estate property can make or break your business based on the location. Consider the type of business you have and the clientele you’ll be attracting. Ask yourself what spaces these customers or patrons frequent, and what businesses are already receiving patronage from your ideal clientele. Try to target those areas when searching for commercial real estate property for sale in Ventura or neighboring areas. Additionally, your agent or broker will be up-to-date on the latest and greatest in terms of hot spots in the city.
View the property
In today’s fast-moving market, there’s not always time to view a property before making an offer. While this may work in some markets, it’s not advisable when purchasing a commercial real estate property.
When it comes to residential real estate, there are consumer protection laws in place to protect you as a buyer. So, if you buy a home that turns out to be a lemon, you do have some protection. However, when it comes to commercial real estate, there are no consumer protection laws in place. Thus, you’ll want to make sure you have not only seen the property, but you’ve also done all other due diligence such as requesting financial statements from the current property owners.
There’s a lot that goes into purchasing commercial real estate, so it’s best to make sure you have a team of well-equipped professionals on your side before going into the transaction.
Ready to view Santa Barbara commercial real estate?
Whatever questions you need answering regarding Santa Barbara or Ventura commercial real estate, look no further than The Cohen and DeBusier team. They’ve helped countless investors find Ventura County land, and have expert knowledge on commercial property for sale in Santa Barbara.
Once you’ve determined your motivation and reviewed and prepared financial documents, you’re ready to begin your search. To find the best Ventura County land for sale or Santa Barbara commercial properties, reach out to The Cohen DeBuiser team today.
