Nothing seems as daunting or tasking as owning a commercial real estate in Nigeria. You could factor in a lot of things and find a thousand one reasons why you should not have a commercial real estate.
You could consider the time commitment, the financial contributions at the beginning, dealing with people, which could be problematic for some people and even the possibility of failure.
However, the process of owning commercial real estate could be simplified when you understand what it takes to be a successful real estate owner. Below are some of the helpful steps.
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Agree with yourself
The first step towards achieving success in by owning a commercial real estate is to make a decision that you want it for yourself. It must not be what something put you up to. It must be totally and wholly your choice.
You need also have a heart-to-heart conversation with yourself before you have one with potential lenders. You have to ask some questions; what kind of business location do you desire? What kind of property do you need for your business?
You should also find answers to the following questions; is it better for you to lease or buy? Will the property need any work, and if so, how much?
You will also need to find out from other real estate property owners what they did to become successful. You see, this is like carrying out a feasibility study on the subject.
2. You Should Carefully Consider All of Your Options
Property is not littered everywhere. Well, at least the kind you want. It is like girls. There are many of them but there are a few you would get down with.
It will take you a lot of committed efforts to be able to locate the perfect real estate. You have to go about it diligently and see what you can get out of your search. Seek and you shall find.
You have to know what you can compromise and what you cannot. It will guide the specifications you will give to an agent who will help you look for one.
The location of the property is very crucial. You might pay more because of the location but it will be worth it in the long run.
3. Get conversant with commercial real estate terms
You have to understand the terms used in commercial real estate terms. Terms like loan-to-value ratio, debt service coverage ratio, ad valorem, cash on cash, and vacancy rate. It makes it easier when you want when you want to buy and operate the commercial real estate.
4. Look for help when necessary
Don’t be afraid to locate experts when you need help. Some of the professionals you will need to seek out include accountants, mortgage brokers, commercial realtors, and commercial real estate lawyers.
Owning commercial real estate is something that calls for the knowledge of experienced and reputable experts rather than information you found on the internet.
Once you’ve found a property you like, make sure you don’t sign anything until all documents have been looked over by a commercial real estate lawyer. Good luck
