If you’re in the market for commercial real estate in Denver
, you will likely want to find the best property for your money, something which is both affordable and has the highest upside to gain in value. This can make the prospect of purchasing a property which has repair needs an attractive idea, as you may be able to conduct the necessary repairs to make the property gain a serious amount of value in a short amount of time. But these types of properties can also come with a variety of pitfalls and downsides which every buyer should make them self aware of. Before you take the plunge into the great unknown, here is what you should know about purchasing a fixer-upper property in the Denver commercial real estate market.
Decide How Much You Want to Spend on Repairs
Fixer-upper commercial real estate properties offer potential buyers with a serious amount of savings upfront, as they may come at a significant discount compared to other similar properties. Obviously, the savings you receive as a result of the property needing repairs will need to be weighed against the amount of money you will have to spend in order to get your property up to the standard you would like.
When taking on a property which requires a large amount of repair work, it is definitely wise to determine how much you are willing to spend on the property. Not every property is created equally when it comes to savings vs. repair costs, as some fixer-uppers may actually end up costing more money in the long-run. It’s best to determine your total cost for such a project, and then have a thorough inspection conducted in order to assess what type of costs you will actually be facing during the renovation process.
Avoid Properties With Excessive Amounts of Repairs
Unless you are an expert in conducting all types of renovations yourself, a property which requires a near-total overhaul will likely be more trouble than it is worth. This is especially true if the property you are looking at requires fixes to things such as the foundation, sewer, or other costly elements of the property. If the building requires multiple types of repairs from different types of contractors, the savings may not actually be worth the hassle required in hiring all of the companies needed to get the job done. Never take on something you aren’t willing or able to finish.
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.