For centuries people in the know have invested in land. Real estate is a complex sector of finance, but one that offers tremendous gains if you make a smart plan and stick with it.
Perhaps you have big dreams, but you’re not sure how and where to make your investments. Specifically developing a property for the commercial real estate industry is something that’s within your means if you use the right team. Here are some common sense solutions for your situation.
Real estate is generally one of the more solid areas of investment. With the right amount of work and planning, you can develop a complex that rents to businesses for office, retail or other space. After the initial investment of development your main cost becomes simple maintenance.
If you save your earnings wisely you can roll them over into new developments, and use your existing maintenance team to take care of them, too.
This makes your money work more efficiently, all while you live off of the profits from rent. The other attractive thing about real estate investment is that if you need to you can always sell off your property. A well-timed sale can net you a large reward that you can use to fund a new venture or possibly retirement.
Perhaps you already have a site in mind, or maybe you don’t. There’s an old adage that states that the three most important things in real estate are location, location, location. You cannot understate how true this is. If your lot is too far from a populated center, you’re probably not going to have a very easy time finding tenants. When selecting the right location for your build, consider how far the site is from major roads. Something visible from the highway or main boulevards is a far more attractive, and often more lucrative, option than a property that takes a long time to reach.
The best location in the world won’t do you any good if the property isn’t zoned for commercial use. You need to make sure that you have legal permission to build and operate a business on your chosen lot. A trip to the records office or an internet search can save you a lot of time and hassle in the long run.
Ask yourself what sort of amenities make this property more attractive. Is the plot located in an area with excellent cellular coverage or that is within range of high-speed cable internet providers? These are essential requirements if your plan to make office space, as businesses need a quality connection for good communication.
Is the land close to existing business parks, or perhaps to recreational areas, schools, parks, or some famous landmark? Nearby features such as these can make your property more attractive for potential renters. The local color also gives you an idea of where the area is headed and what potential renters in the area might want to see.
Once you know what you want, you can start working out how to achieve that result. Did you know that you can start small and work your way up to a bigger project as time goes on? If you have a large property you can begin with possibly just one smaller building that has a lower construction cost than a larger facility. Once you have renters coming in you can use the income that you generate from them to fund your later construction projects.
If you have the cash on hand to develop your entire property all at once, you can save cash in the long term. This is because when you undertake a project piecemeal you have to go through the permitting process each time, as well as drawing up a new contract with builders.
While building up an entire lot all at once has more immediate risk associated with it, if you can find immediate renters you can start making more profitable gains right away.
As a matter of fact, there is a way to keep your design costs down. If you use a turn-key building plan, one that’s already drawn up and approved, there’s no need to commission a custom plan. turn-key buildings have the benefit of being ready to go far sooner than waiting on brand new blueprints to get drawn up. Working with a professional firm with experience in your local area means that your submissions are likelier to get approved by the local planning office.
Kaufman Construction and Development is the local authority on real estate development in Olympia and throughout the five counties area of Western Washington. We’ve been in business for over 50 years and have a reputation for honest dealings and delivering on time and to our customers’ specifications.
If you want to build up a property for commercial use, we can work with you to help you identify the most attractive options for its area. Our designers communicate clearly and understand that your needs are our first priority.
We can scale to suit whatever the project requires. Whether you’re building a large warehouse, a retail strip moll or something else, it’s in our wheelhouse. Once you’ve got the design locked down, we can also supervise the construction process. We hire out our jobs and manage them with trusted contractors with whom we have relationships going back many years. Our previous clients include everyone from small business owners and churches all the way up to the military.
We work with you from start to finish, at a scale that suits your budget, to deliver outstanding results on time. Make an appointment now for a consultation, either by calling us or sending a message through the contact form. You’re just one step away from starting yourself on the path toward real estate success.