Buying commercial real estate in Massachusetts isn’t difficult. There are many available opportunities for the willing investor. With that in mind, commercial real estate investing isn’t something that should be jumped into without first doing research and understanding the current market conditions.
As Massachusetts’ leading property investment advisors, Sovereign Realty Advisors will help you become a successful property investor and grow your investment portfolio as well as your wealth. Here are some helpful tips to buying commercial real estate in Massachusetts.
1. Ask yourself a lot of questions up front
Before purchasing commercial real estate, know yourself, your situation and exactly what you’re looking for. There are some questions you should consider asking yourself before making a commercial investment property purchase including:
- What kind of property are you looking for?
- Are you looking to use the building for your own business, rent it out, build equity, and/or something else entirely?
- What kind of location do you need?
- Do you need to buy or could you lease the property?
- What’s your risk tolerance?
- And many more.
2. Visit and consider many properties.
You will need to visit many properties and do your research on each one. Make a list of pros and cons for each property and find the one that best suits your needs. The most important aspects of each property are: price, location, condition and allowed uses.
3. You will need a team of experts
Buying commercial real estate in Massachusetts can be very complex which is why you should hire experts to assist you. From an accountant and a commercial real estate lawyer, to a commercial real estate agent and a mortgage broker, find the people who have the experience you need.
4. Make an offer
Now, make an offer on the property that suits your needs and your finances. Be sure to have a commercial real estate agent look over any paperwork before you sign anything so you know exactly your rights and obligations.
5. Due Diligence and Escrow
Finally, you are at the stage where money will exchange hands. You will get an ALTA (American Land Title Association) survey which can provide valuable information such as boundary lines, location of the main building including improvements, location of secondary buildings and the identification of easements.
Both you and the seller will need to agree on an escrow officer who will handle the transaction. This ensures that both parties are protected in the transaction and that the final closing escrow documents are accurate. These will include a quitclaim deed, non-foreign affidavit, title affidavit, bill of sale, sale and assignment of contracts, warranties and supplier guarantees.
Now, you have purchased your first commercial property in Massachusetts and you are on your way to property investment success.
To learn more about the Massachusetts commercial property market, contact Sovereign Realty Advisors today.
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