If you are buying your first commercial real estate property as an investment, it is likely that you will feel like you are walking into the unknown to some extent. You have also probably conducted a great deal of analysis on how the property will be able to provide you with income in the future -- but you may have overlooked possible expenses that cannot be easily foreseen.
It is important that you do your research and due diligence before closing on commercial real estate property. This can prevent you from making an investment that turns out to be a burden on your finances.
Important things to consider before closing
It is likely that you already have a good idea of how much rent you can make on the property you want to close on, and how much profit you think you can make when factoring in the mortgage and other expenses. However, it is important to gain a good idea of the taxes on the property that you will be subject to, as well as maintenance costs that you may not have considered. Many people underestimate the costs of repair and refurbishment on a property before they close.
In addition, it is vital that you do your due diligence in regard to the state of the property that you are closing on. You usually need to get an American Land Title Association (ALTA) survey ordered on the property in order to make sure everything is as it seems.
If you are going through the process of closing on a commercial property in Florida, it is important that you understand the exact details of the law.