If you are new to commercial real estate investment, it’s essential to do everything in your power to minimize the chance of making a mistake. As a beginning investor, there are plenty of important areas that you may overlook unintentionally.
Even experienced investors make mistakes when they are not careful with their planning and calculations. This is why hiring a Fort Lauderdale commercial real estate lawyer for investment planning assistance makes sense for real estate investors of all experience levels.
This small list of common mistakes may come in handy when it comes time to close your next commercial real estate deal.
Don’t make mistakes with your financial calculations
Making one mathematical miscalculation or using only a projection of potential numbers instead of the real operating numbers can easily lead to a bad investment. Be sure that you triple check (at minimum) all the numbers associated with your potential investment, and that you are using accurate and real data with your calculations.
While miscalculating finances is a mistake, so is borrowing too much money. Leverage should primarily be used as an investment strategy, and for newer investors it can be very risky without the proper guidance. Don’t borrow excessively without an expert guiding you along the way or a very concrete and proven plan.
Hire an expert to help you understand the intangibles of commercial real estate
Inadequate knowledge of the intangible details of commercial real estate investment often leads to future mishaps. These intangibles include various real estate laws, zoning, tax laws, financial calculations, accounting, insurance, surveying, and more.
If you’re not knowledgeable in these areas, don’t attempt to jump into an investment without advice. Hire a professional a Fort Lauderdale commercial real estate lawyer to ensure that you understand all of the intangibles associated with your potential investment. Your lawyer will explain these often complicated topics in a way that you can understand along with their potential implications.
There are plenty of areas to slip up on, as the legal and tax issues related to commercial real estate can be quite complex, even for the most experienced investors.
Contact Mark Schecter for a consultation today
In conclusion, to avoid making mistakes as a new commercial real estate investor, you should do your best to learn from others’ mistakes and contact an experienced real estate expert or lawyer when you are in unfamiliar territory.
Mark Schecter at Schecter Law is a Fort Lauderdale commercial real estate lawyer who can help you avoid the many common mistakes and give you a significant advantage before your next deal. Contact Mark Schecter for a consultation today by calling (954) 779-7009.