Buying a commercial property in New York may be an ideal way to increase your net worth while also diversifying your investment portfolio. In some cases, it may be possible to rent to both commercial and residential tenants at the same time. Of course, it will be harder to obtain a return on your capital if you pay too much for a given building.
Do your homework
Ideally, you’ll spend time learning more about what similar properties have sold for over the past several months. This will help you get a better idea as to what you should expect to pay for your preferred building. It may also be helpful to learn more about your acquisition target to determine if it needs repairs or has other issues that should be accounted for when making an offer.
Get to know the seller
As with any other type of business transaction, real estate transactions are much easier when you have a rapport with the seller. Having a relationship with the current owner may make it more likely that this person will negotiate in good faith or take steps to help complete the due diligence process. In a hot market, making an impression on the seller might help your offer stand out or enable you to get the property for less than what others might be offering.
After a real estate transaction is closed, you are generally responsible for any problems that a property might have. Therefore, you will want to have a team who can help with the due diligence process. You should have a team that can help manage the property after it is acquired.