4 Steps to Buying an Apartment Complex in South Florida
Owning a rental property can be an opportunity to secure some extra income and step closer to financial freedom. However, a venture like purchasing an apartment complex can seem overwhelming. While it may seem too much to try to figure out the ins-and-outs of commercial real estate, it can be much easier by taking things one step at a time. Here are your four basic steps to buying an apartment complex in South Florida.
Get Familiar With Real Estate
It may seem obvious, but you’ll need a little background on real estate itself before you jump into the commercial world. You likely already have a bit of this information at hand, but you may find it helpful to turn to a real estate broker or appraiser to help you with your purchase. Especially if this is your first venture in commercial real estate, having professionals on your side is vital to making sound financial decisions.
Understand Your Potential
The rental income you can accrue from an apartment complex is clearly far greater than what you can achieve with a single rental property. Be sure to fully review the profit and loss statement of the building to give you an idea of the historical income. This step is where an attorney can truly come in handy, as they can make sure you are reading these documents with an unbiased eye and not simply taking the seller’s word at face value.
Have an Appraisal
Appraising an apartment complex can be completely different than appraising a single family residence, so hiring a professional is key. You’ll be able to calculate the net operating income of your building and compare the sales price to ensure you are making a smart business decision, and your appraiser can help you make sense of the numbers.
The vast majority of the time, those purchasing an apartment complex will need to take out a loan. Shop around and see what interest rates are available to you, and negotiate if you are approved by multiple banks.
Commercial real estate is an exciting and fast-moving world, and it’s a great space to expand your portfolio. To make sure you are financially sound every step of the way, turn to a Fort Lauderdale commercial real estate attorney. Mark Schecter at Schecter Law is dedicated to helping you navigate buying the perfect apartment complex. For more information, contact us today at (954)-779-7009.