If the bank says NO, DFS can get you a YES!
Commercial property buyers agents help people purchase commercial property. They are there to assist with the commercial property investment process from beginning to end, often acting on behalf of the buyer to help find lucrative investment opportunities and negotiate deals. You don’t need to be a commercial property investor to benefit from an agent though — they help business owners find the right property for their business needs.
A commercial buyers agent will generally deal specifically with commercial property, excluding areas such as residential property.
Using commercial buyer’s agents can prove invaluable in finding the right commercial property. Below are a few of the ways they can add value to the property purchase process.
A good buyers agent will have a large network of potential sellers. This means they will have access to properties that won’t even make it to being publicly advertised. If you’re looking to snap up a bargain with a lot of potential, a buyers agent is your best bet.
If you’re looking for a property with great potential for capital growth or a high yield, chances are, a buyers agent is going to have a good idea of where to invest. They are immersed in the industry every day, so their knowledge and experience regarding the commercial real estate market is vast. By utilising the knowledge of a commercial buyers agent, you can ensure you are acting on reliable information, helping you find the perfect property for your needs and goals.
It’s always a bonus when you can purchase your dream property at a dream price. Commercial buyers agents know the market values inside out and are often experts in negotiation, ensuring you get a great purchase price.
Whether you are a property investor or a business owner looking for a premises, it can be a good idea to use a property professional to conduct due diligence and inspect the property. If you don’t have exactly the right idea about what you’re inspecting, it’s easy to overlook things that could turn into a major expense down the track. Due diligence should be conducted before an offer is made, and involves looking over the financial and physical condition of the property — including features such as the property location, demand and vacancy rates, to ensure you don’t end up dealing with the financial disaster of purchasing a dud property.
Depending on your agent’s specialty, they may offer additional services such as property management or acting as real estate agents. If not, it’s likely they could refer you to relevant professionals in their network if needed.
While it’s obvious that using a buyers agent is going to save you time, the benefits can be more valuable than you realise. We all have the same amount of hours in a week; if you’re having to take time out of your days to conduct a property search, you could potentially spend hours that could be spent on much higher-value activities.
In addition to time wasted, searching for a property on your own can sometimes lead to making emotional decisions, which can end up costing a lot of money! For example, it’s very easy for buyers to get caught up in a bidding war against someone else, and end up paying a far higher price than the property is worth, purely because they got carried away and didn’t want to lose.
Buyers agents are efficient at what they do and act in your best interest, without letting their emotions get in the way.
If you’re a business owner considering whether to buy or lease a property, there are a few pros and cons that need to be considered.
Pros: Buying your own property and being the owner-occupier means that you have control over the premises. This can be a huge advantage because you can basically make any modifications that you see fit. You also don’t need to worry about a landlord selling the property and potentially kicking you out!
Cons: If anything goes wrong with your property and it requires repairs, you are responsible for footing the bill. Insurance can help with many types of unexpected damage, but there may be situations where you’re left coving costs.
Something else to consider is the speed at which your business is growing. If the premises isn’t big enough to facilitate your growth trajectory, you may outgrow and need to move on too quickly — meaning you may be looking to sell commercial property soon after buying.
Pros: When leasing a property, you do not have to tie up your capital. This gives you the opportunity to invest your capital into other areas of the business, such as investing in more staff, marketing or research and development. If this investment in the business leads to business growth, you can simply pack up and move onto a bigger property without having to worry about leasing it out or selling it, like you would if you were the property owner.
Handy to know: Utilising commercial finance is another way to avoid tying up your capital in property. So you can purchase property with commercial finance and still preserve your working capital.
Cons: When leasing a property, it’s probably inevitable that you’ll need to contend with rent rises at some point. While you have the option of moving the business elsewhere, sometimes the inconvenience involved with moving will see business owners having to cop the rent rise on the chin.
If you’re in the market to become a commercial property buyer, it’s likely you’ll need finance to fund the purchase.
At Diverse Funding Solutions, we help business owners access the funds they need to purchase or refurbish commercial property — Whether it’s your first commercial property purchase, or you’re looking to add to your commercial property portfolio.
A commercial property loan can help you buy commercial property such as:
Our private loans are quick with less strict lending criteria than other lenders, a faster application and approval process, and a repayment schedule that is tailored to your business needs.
If you’d like to learn more about commercial property investing for business purposes with a private loan, please contact us today!