So you are thinking about becoming a commercial property developer, but is it as easy as it sounds? In recent years countless television programmes have showed us how easy it is to make money on a residential property; you simply buy a rundown property, renovate it and sell it on. But is it as simple as that for a commercial property?
The first step when becoming a commercial property developer is deciding on a location. So by finding a rundown out of town property which has access to a car park, good transport links and near some shops would be better than a property in the centre of town, which has limited parking facilities available and will most likely charge for the service.
Once you have found a commercial property that you like, you should check the extent of what you are letting yourself in for. Obviously the property has to have problems you can fix in order to make a profit, but you should obtain estimates from tradesmen such as; damp and timber specialists, electricians and roofers to see how much it is likely to cost you.
The next stage is to clinch the deal with the current seller. Gary McCausland, Property Developer and Presenter of ‘How To Be A Property Developer’ expressed, “You make money when you buy a property rather than when you sell it.” So make sure you negotiate and hammer down the price, mentioning every issue that will cost you money to address. It is best to have a target audience in mind and always remember that you are planning to sell the property at the end, so your personal taste on internal decorations may not suit everyone.
With the current property market as it is, finding a bargain to buy should be quite easy as many owners will need to sell the property more than you need to buy it. Gary stated the best sellers to find are ‘motivated sellers’, “Motivated sellers are people going through divorces, people in financial difficulties, or the families of the recently deceased, who want a quick and painless sale.”
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