5 Steps To Buying Commercial Property Investments In Orange County

Considering buying commercial property in Orange County? Here are the basic steps:

Step 1. Why Commercial Property

Before buying commercial properties in Orange County, CA, ask yourself: what is my goal with the property? Will I be renovating and reselling the property? Will I hold the property long term and collect commercial rental income? These answers will guide you in finding your ideal purchase.

Step 2. Locate the Commercial Property

There are a handful of ways to find commercial properties to buy. First of all, you can call us at 949-625-4533 and we can help you find what you are looking for in Orange County. You can work with a Realtor who has access to the multiple listing service, or MLS. You can also find properties for sale by owner on public posting boards online. There are also public auctions held by cities and counties in CA that may offer commercial properties for sale, mostly due to unpaid taxes. Working with a real estate professional might be ideal if you are new to buying commercial properties, they know the tips and tricks of the trade. You also might want to look for an area in or close to the municipality of Orange County where the commercial demands are higher, you will probably be able to ask a higher commercial rental rate if that is your plan. Commercial properties clustered in other commercial areas are also in greater demand.

Step 3. Evaluate the Investment

Real estate professionals have easy access to most sources of information for research on commercial properties. It does not hurt to do your own research, just to double-check. 

Search the county records for the deed and ownership history. There should be a nice, clean chain of owners from one to the next. If not, there will have to be legal paperwork done that takes time and costs extra money. Make sure to look up the property taxes, if there are any open certificates and you purchase the property, the owner might be able to take the property back from you before the waiting period is over, typically 4 years. 

Review the physical characteristics of the property, will it be large enough for your plans? Does it have direct access to the utility system? Are there plans for utility expansion? What is the ROI of this investment, does it meet my goals? Check into the plat maps and any surveys available to make sure there are not any surprise easements of which you are unaware.

Step 4. Finance Your Commercial Property

You’ve found the commercial property you want to buy. Now it’s time to fund the closing! How are you going to do that? Do you plan to pay cash, or do you need a loan? If you need a loan, there are a handful of banks willing to finance a commercial investment property. Make sure your financial status doesn’t change during the closing process. Another option would be to form a partnership to invest in commercial properties where you would form an agreement to pool your funds to buy a larger portfolio of property with larger returns!

Step 5. Hold Your Commercial Property

Now that you’ve purchased your commercial property, what is your holding plan? Are you going to flip it right away, or will you hold it for a few years? Keep in mind, the faster you make a profit by reselling, the larger tax you may have to pay. The longer you hold it, the less capital gain tax you will have to pay when it’s sold.

Give H&M Realty Group a call today at 949-625-4533 or send us a message to discuss buying commercial property in Orange County, CA. We can help you locate and evaluate the available property to make sure it’s a good fit for your portfolio.

Joe

Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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