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Keep your goals in mind when you purchase commercial real estate

When you want to jump into the commercial real-estate market, it's time to get to know the market as well as possible. You need to understand how properties are priced, the local economy and the best ways to obtain the largest payoffs from your purchases.

How do you choose the best properties? The only way is to become business-minded. Understand that every commercial property has a different price based on square footage. For one market, square footage could be $18 per square foot. In another, it could be $800. This is different than residential homes, where value relies more on the kind of home you're purchasing.

Another thing to keep in mind is that commercial lenders tend to want more in a down payment than a residential lender would. It's normal to see a lender ask for a 30 percent down payment. If you don't have the cash, it's less likely that you'll be able to make a solid purchase.

Finally, know how to recognize a good deal when you see it. Keep an eye on properties you want to purchase, but don't get into a situation where your only option is to buy. The best option is always to be able to walk away if you don't get the terms or agreement you want. That way, you always make the best decision for your situation, not the decision that you're left with out of desperation.

Our website has more information on commercial real estate and what you can do to make sure your purchase is as beneficial to you as possible.

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