Here at North Bay Property Advisors, we specialize in the process of buying commercial property in Santa Rosa.
Whether you’re looking to invest in manufacturing facilities, retail space, office buildings, or multi-family housing, we can point you toward commercial properties for sale and act as your commercial real estate agent.
While apartment buildings and other multi-family dwellings can be a great investment, it’s important to realize that they’re not a guaranteed income-making machine. Here are some of the warning signs to watch for when buying commercial properties in Santa Rosa, especially apartment buildings.
1. The Numbers Don’t Work
Buying an apartment building can and should be profitable. With the help of the commercial real estate agents at North Bay Property Advisors, you can analyze available data to make sure that your investment will indeed make you money. And if we feel the current deal on the table won’t make you money, we’ll advise you to wait for another opportunity.
2. Missing Financial Information
When buying commercial property in Santa Rosa, asking for at least 24 months of profit and loss statements from the seller is essential. If they can’t or won’t provide this information, it’s a big warning sign that there might be something unsavory hidden in their financials.
3. Fictitious Numbers
Without the services of a commercial real estate agent, you might never know that “Pro forma numbers” aren’t actual statements of fact. They’re basically speculations about the kind of income that’s possible for a certain investment. Your commercial real estate lenders won’t even look at them and neither should you.
4. Location Problems
Yes, lots of neighborhoods see an improvement in amenities and cleanliness over time, but do you really want to wait for that to happen while you’re losing money? A good apartment building in a bad area is rarely a smart commercial real estate investment.
5. Lack Of Interest
One of the first questions you should ask when buying commercial real estate in Santa Rosa is, “how long has this property been on the market?” If the listing has gone stale, it’s important to find out why before proceeding, especially if there are no problems apparent on the surface.
The commercial real estate experts at North Bay Property Advisors can help you avoid these unsavory situations and more! Contact us for help buying commercial property in Santa Rosa today.
With us, you’ll have professional guidance in finding commercial properties for sale, inspecting them, finding commercial property financing, and even commercial property management should you be successful with the purchase.