Don’t underestimate the importance of picking the right real estate asset. Maximizing the value of your Texas Commercial Mortgage means due diligence in choosing the right investment property.
Most organizations understand the advantage of investing in commercial real estate. The assets financed by way of a Texas Commercial Mortgage can become a major source of revenue and financial protection for companies of any size. The success of a particular real estate asset at attracting tenants and generating revenue, however, will largely be determined by the property itself. That’s why selecting the right property is just as important as how the commercial real estate project is financed.
There are a number of ways to evaluate a piece of property for purchase with a commercial loan. The most successful investors approach this task from a multitude of angles. The more potential problems an investor can anticipate, the better equipped they are to identify the ideal property for purchase. Here are a few tips to help get you get started evaluating real estate assets:
● Assume every investment is living on borrowed time – One of the biggest mistakes that a potential investor can make is assuming that any one commercial real estate asset will provide a lifetime of benefits. Like any industry, the commercial real estate industry works along a cycle. Your job is to find a property that works now, not one that seems like it could work forever.
● Prioritize construction, maintenance and sustainability – When it comes to looking at the nitty gritty of the property itself, you’ll want to get as much information as you can about the building’s construction. Who built the facility and when was it completed? What recurring maintenance issues have previous operators dealt with? How efficiently does the building operate with regard to water, electricity, air quality, etc.
● Review city codes and local zoning laws – Don’t overlook the local laws that dictate how the building can be accessed, what types of business can operate in the area, what type of traffic is allowed to move through the area and a long list of other factors that will impact the success of your investment. Failure to review city does could result in your company buying a building it can’t actually use.
● Scrutinize surrounding businesses as well – It isn’t enough to review the building and laws that impact the property. Your business is best served by taking a long look at all the businesses operating in the area. Which ones are successful and which ones are struggling? Does the clientele for your prospective tenants already visit nearby locations? Will you have direct competition? Answering these questions ensures that your investment won’t face unnecessary hurdles out the gate.
An Experienced Lending Professional Can Offer Insights On Real Estate Assets
Remember that your company has resources when it comes to selecting the right real estate assets for possible investments. Leaning on external expertise increases your odds of making the right choice.
Extensive planning will it easier to find financing and
select a property that meets your company’s needs.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.