The real estate market in Spokane is shining right now. The home value has improved by 11 percent recently, and the Spokane housing market is currently enjoying recording highs.
Residential properties aside, you can really win big as an investor by getting into commercial real estate. It’s important to study the market and figure out what kinds of moves you would like to make.
Read on to learn about buying commercial real estate in Spokane.
1. Understand the Market in Spokane and as a Whole
By studying the market in Spokane, you will be able to map out a gameplan that works for you.
You should start by getting to know the many different neighborhoods in Spokane so that you know where the traction is. By knowing where people live and work and why, you can make smart investment choices.
The market is constantly changing, so pay attention to where it is headed so that you can put yourself in a prime position to grow your portfolio.
2. Research Developments Happening in Spokane
Real estate market aside, you need to know the many changes happening around the city. This will affect the way that people travel and congregate, which will naturally play a role in the development of commercial real estate.
The city is planning a rapid-transit bus line that will run through several of the hotspots that people travel to. As you might imagine, this will play a role in helping people get to and from work more easily — particularly in the busier parts of town.
Make sure that you understand what developments are in play so that you can respond accordingly.
3. Get Your Credit and Financing in Order
Prepare yourself to buy a property by building your credit and increasing your lending potential.
This will put you in a position to buy a property quickly when an opportunity arises. It could also be worth your while to take out a commercial equity line of credit (CELOC), so that you can fund both property purchases and improvements.
With a line of credit, you’ll not only establish business credit but can cut a check from this account whenever you are ready to buy a new commercial real estate property. This gives you more flexibility and investment potential.
These lines of credit come with high credit limits and lower closing costs than you would get with traditional loans. Shop for low-interest rates so that you’re able to easily pay down any money that you borrow.
4. Look Into Mixed-Use Properties and Developments Whenever Possible
Combining different mixed-use properties will be a great way to manage your portfolio.
For instance, you can buy a series of commercial offices that different companies can rent out and share information technology (IT) resources, and include some high-end apartments and retail opportunities at the property.
Having a number of different property types and leases under the same roof gives you the opportunity to diversify your income and improve your overall cash flow. This is a trend that a lot of developers are jumping on right now for this reason.
5. Put Together a Team That Can Help You Out
If you are purchasing commercial real estate in Spokane, you need to put together a team of professionals that can assist you.
At the very least, you need to have a quality commercial real estate agent and a real estate lawyer that can assist you. You should work with these professionals on a regular basis to build a strong rapport. They will be invaluable in helping you grow your commercial real estate portfolio moving forward.
It can also be worthwhile for you to work with a certified public accountant (CPA) and an investment advisor that can help you see new opportunities.
Be sure that you work with your team so that your purchases are all completely legal, organized and productive for whatever goals you have.
6. Try to Buy Your First Property
The thing about commercial real estate is that the more properties you buy, the easier it will be for you to keep buying more.
Look into any programs that could help you get a property without paying a down payment, or by paying a low down payment. Make sure that you keep organized data on all of your properties so that you are always putting together the best applications as well.
Think of every investment from a 30-year standpoint. A burgeoning hotspot today could hold the best property value in your city years from now.
When you think long-term, you’ll be able to build a lot of value in your portfolio.
7. Address the Closing and Due Diligence Process
You owe it to yourself to do your due diligence when you are closing on a commercial real estate property.
Be sure that you have your entity in order and that you work with your lawyer to negotiate with the other party. Get the property inspected well in advance and make sure that it is up to code and that you have no lien issues or other setbacks.
Keep in mind that no two property purchases are the same, so you should be flexible and willing to go through the process as effectively as possible.
Always have a gameplan and keep following through with it so that you are able to land some commercial real estate that will be excellent for you.
Create a Plan to Invest in Commercial Real Estate in Spokane
Researching commercial real estate in Spokane can give you a great start when it comes to building your investment portfolio.
These are the tips that will help you buy whatever sort of property you need. Our professionals will be glad to assist you.
Take the time to contact us so that we can help you with all of your commercial real estate needs in Spokane. You can also give us a call at (509)327-2282.