The Encyclopedia of Commercial Real Estate Advice

CHAPTER 2Seven Smart Strategies for Adding Value When Buying

This chapter is all about making smart decisions when buying a commercial investment property. First we look at the importance of having your down payment and financing together. Then we examine the benefits of leveraging done responsibly. Defining your property search objectives is covered next, followed by how to do a quick determination of value and how to choose a property that can be recession-proofed. Lastly, we discuss choosing the professional team members who will advise you, and some great tips on making and negotiating offers.

1. HAVE YOUR DOWN PAYMENT, PROFESSIONAL TEAM, AND FINANCING TOGETHER BEFORE YOU GO SHOPPING

Often beginners shop for financing with no experience and before they have a down payment or a team. Worse yet, they make offers first and then shop for their team and financing, after a seller is interested. Both of these methods are totally backwards and may waste your time along with everyone else's. If you do find the right property, do you really want to sabotage your chances for landing it with the listing agent and lender by conveying that you don't have the wherewithal to pull it off? Yes, first impressions really do matter. Here are some great steps to follow before you make your first offer:

1. Get prequalified for financing at the beginning by an experienced commercial mortgage broker who is affiliated with many lenders. If you want to just use your bank, make sure that whoever is ...