Commercial real estate investments offer potential long-term earning, but it comes with challenges not found in the residential arena.
Often high-dollar deals with stiff competition, you can easily fall into common traps that may make your deal go sour.
1. Jumping in too soon
As Pensacola continues its trend of strong growth and low vacancy compared to the rest of the U.S., it makes it easier to want to swoop in on the first property that seems to fit your needs. Letting your emotions drive your decisions could lead to getting left with a costly money pit instead of a rich investment.
2. Slacking on due diligence
Once you have the confidence that you found the perfect property, remember that you cannot just go by looks and pricing alone. This type of investment means going above and beyond regarding due diligence. Investigating the history of the property, learning the owner’s reasons for selling and getting an inspection will unveil any hidden issues.
3. Discussing the deal prior to signing
As the excitement builds for closing day, you may find yourself wanting to share the news on your great deal. If word gets around, you may risk having a competitor swoop in and make a better offer. That leaves you right back to the beginning of your search.
4. Procrastinating on closing obligations
Before sealing the deal, ensure you take care of all the details. Not preparing for post-closing obligations may mean dealing with unexpected fees and delays in gaining full access to the property.
Whether new to real estate investing or experienced, staying diligent throughout the process may help ensure a smooth process.