What are your current mortgage terms? Are you refinancing because you want a lower rate? Longer amortization? Want to pull cash out? Or do you have a ballooning loan? What are your long term goals?
When buying a commercial property there are some different rules that apply than when you are buying a home. Renting it out may be easier, but finding tenants who stay there isn’t always a promise because its not only based on if they are good tenants, its based on if they can have a successful business. With a commercial building you are going to either hold on to the property for a very long time, or sell it as soon as the market rebounds. This is because many buildings are available at a cheap price right now, and finding a seller is tougher when prices go up.
It is advisable to learn all you can about how to buy commercial real estate, and the specific types of investing ventures you might pursue before getting started. It is very important that you have to plan ahead of time.
Before you make a decision to become an agent, talk to licensed agents out in the field. Consider what they say about their earnings, brokers and how friendly or unfriendly the local market is to agents. Many areas simply cannot support the number of Brokers and Agents trying to eke out a living there. In California, for example, it’s said that there are more Real Estate Agents than Lawyers and less than a third of them actually see a profit.
As you are flipping houses, hone your skills so you will be ready to buy rental and commercial properties. Hone your skills for buying, negotiating, selling and managing so that you can immediately start generating cash flow.
Yes, you are decided to invest, so you want to do is purchase that property. Is that really what you have to do first? What you have to do, is not to just jump in and invest in Sarasota real estate. Indeed, you believe what you want to do. You want to invest in Sarasota real estate to earn more. But are you sure what you are entering into? Do you know how to invest? Do you know how it works? What type of investing you can do, and can do properly? Do you have enough knowledge about the real estate world?
You are the business owner and your business’ cash flow should cover the mortgage expense. Remember you are buying the property and planning to operate the business out of this location for the next 5 to 10 years. Even though your property value may not increase in the short term, think of the long term. When you decided to retire or sell your business you will have so much more to offer in the Sale. For example you can sell the business with the property which would increase the sales price. You could also sell the business and lease the property back to the buyer. Or you can even sell the business and the property to two different buyers.
Of course, it goes without saying that proper care should be taken when planning your retirement. It is not something that can be done in a jiffy. You have take everything into account, like long term financial plans, expenses in the future, healthcare, accommodation, taxes and so on. Basically retirement planning involves taking into consideration everything you will need when you grow old and are no longer working.