When investing for the first time in the commercial end of real estate, North Palm Beach buyers find themselves having to shift their thinking; buying property to use for yourself is quite different from picking an investment that will deliver a return on your money. When looking at homes for sale, real estate buyers focus on their own needs; with commercial, it’s a matter of identifying the needs of the market.
The best advice we can give to the first-time commercial buyer is to decide on a single market segment at first, and stick with it before branching out into other types of investments. If you think you’re best suited to apartments, or think you have knowledge about retail sites that might inform your investing better, go with your instincts there and give your undivided attention to one property at a time.
Along those lines, take the time to thoroughly investigate a property before you make your first offer. From local crime reports to environmental inspections, there are a host of potential pitfalls waiting for the unwary commercial investor that you might not have thought of. And if you’re investing in a property specifically because of an industry that will make it profitable, be sure to know enough about that industry to be able to accurately predict whether it will still be around in the months and years to come.
Finally, if the numbers on a commercial property don’t pencil out to profitability, don’t let your “love” for a particular parcel blind you to reality. Treat every purchase like an investment — nothing more, nothing less.
If you’d like more information about any of the commercial or residential real estate North Palm Beach County has to offer, please contact Preferred Residential Properties today.