A commercial real estate purchase is very likely one of the most important business deals of your life, and you need to exercise caution to avoid as many mistakes as possible. There are several exciting markets in South Florida to invest in, but you should always consult with an experienced South Florida commercial real estate attorney as early in your search as possible. Your attorney can help you avoid the following and other critical mistakes that can end up hurting the potential return on your investment.
Mistake #1 – Waiting until it’s too late to buy
Timing matters a lot with commercial real estate purchases, and a properly timed purchase can prove to be very profitable if you sell at the right time in the future. The best commercial real estate investments in Florida are always snatched up quickly by savvy investors. If you try to hold out too long on a great deal the chances are that it will be lost to someone else. You should consult with experienced investors and your attorney and try to find out if it’s a good deal as soon as you can. This way you can finalize the deal before others enter into the picture.
Mistake #2 – Overlooking the tax implications
Inexperienced investors often overlook tax implications of their commercial property investments. You need to have an accountant as well as an attorney advising you on tax implications during your property search. This way you will know exactly what to expect in terms of tax obligations. Successful investors know how much they are going to pay on taxes ahead of time and look for strategies that can minimize their taxes. Tax liabilities can make the difference between a successful investment and a loss, and both your attorney and your accountant can advise you on how to reduce them with your next purchase.
Mistake #3 – Not seeking advice
Even the most experienced commercial real estate investors who are capable of finding a great deal on their own will look to the advice of their attorneys, accountants and other investors. There’s always a potential legal area, negotiation point, or contractual detail that you might overlook simply due to human error. A wise investor will always hire an attorney at some point, but the most benefit can be seen toward the start of the search or during negotiations.
Mark Schecter is an experienced South Florida commercial real estate attorney who can give you experienced and professional advice on your next deal. Contact our office today for a consultation if you are planning on investing in a commercial property or if you have any questions at all about the local market.