It’s obviously not just a matter of finding your dream property and then putting the necessary down payment on it. Unless you are absolutely flush with cash and have a total abundance of needed funds, you’ll want to properly prepare to have the necessary budget needed to comfortably complete the purchase process. If you’re in the market for a new piece of Denver’s hot commercial real estate market, here is how you should plan to budget for it.
Of course, one of the most important components of the commercial real estate buying process is to have the necessary funds to put down a down payment on the property
. You’ll likely need much more than what is typically needed for a residential property, as a lender will want to feel comfortable knowing you are adequately invested in the purchase. Unlike with residential loans, lenders are much more picky about who they lend to, so you will want to have all of your ducks in order before you think about finalizing a deal.
Outside of the obvious expenses that will accompany purchasing the property, you will want to have enough money to prepare for any additional costs which may be associated with the building. This can include money for environmental and structural assessments which may need to be done. You will also need to have money set aside for the appraisal, as well as the cost of completing a title search.
Closing Costs and Contingencies
In addition to the purchase price, you will want to have money set aside to complete closing costs, such as the realty commission cost, taxes associated with the purchase, and any legal fees associated with the transaction. Additionally, you will want about ten to fifteen percent of the purchase price set aside for any unexpected contingency expenses. You certainly don’t want to be short-handed in the event of an unexpected expense.
Renovations and Repairs
Finally, before you close the deal and begin to reap the massive benefits of owning commercial real estate in the mile high city, you will want to also have enough money set aside for potential repairs and renovations. Prior to closing the deal, you will want to have a thorough inspection completed by a trusted contractor in order to get a solid idea of what kind of repair and renovation costs you may be facing. If you think your new building will require a lot of TLC, be sure to build that into the purchase price.
If you’re seeking a qualified and knowledgeable real estate firm
in the Denver area to assist you through the property investment and development process, Elevation Group is your preferred choice in the mile high city. We offer expert advice and help from start to finish in order to ensure your commercial or residential project is a smooth success, providing you with the needed peace of mind to make your dreams a reality. Contact us today to begin the process of building your dream property development.