In this video, I sit down with commercial real estate attorney Junilla Sledziewski who provides us with several commercial real estate tips to consider before entering into your first commercial real estate deal.
Hi, Chicago personal injury lawyer Barry Zlotowicz of the LawFull channel here with you. On this channel you’re going to find short videos on the legal topics that affect your life. If you haven’t already, please subscribe to our channel and if you have any legal issues you need answers to, reach out to me. If I can’t help you I’ll find someone who can.
So, many people want to get into commercial real estate investing in Chicago and elsewhere but don’t know where to start. This is the fourth video I’ve done with Chicago real estate lawyer Junilla Slediewski to discuss the top things to look for before your first commercial real estate deal.
First, have a plan for the real estate. Are you going to work on the bottom floor of a duplex and live on the top floor. Or are you going to flip the house once you have rehabbed it? Where is the money coming from to buy and enhance it? And how long do you have to hold on to it.
She also recommends having your team in place before you buy the property. Your team might include a real estate accountant, real estate lawyer, real estate broker, mortgage broker etc.
Have an exit strategy: Know in advance how long you might have the property so that you are super aware of when the right time to sell the property is.
Something else to keep in mind is that buying real estate ties up your liquidity. And Chicago commercial real estate can take a long time to sell, definitely longer than a typical residential real estate sale might take.
Another of Junilla's commercial property tips includes getting to know the lingo – Three key terms to know include:
1. Net operating income 2. Due diligence 3. Triple net
Also, know your neighborhood in advance of purchasing the real estate. For example, what type of tenants will you attract? Is business in the neighborhood slowing down or is the area growing in popularity? Is it overcrowded. If you are planning to open a coffee shop where there are already five similar shops, you may want to look elsewhere. And finally, is there any construction going on or planned for the area?
Thanks for checking out this video, if you want to connect with Chicago commercial real estate attorney Junilla Sledziewski, please contact me at [email protected].
And if you have any questions or comments, please put them in the show notes.
Barry Zlotowicz Chicago Legal Group www.chicagolegalgroup.com
Barry Zlotowicz here with the LawFull channel. On this channel you will find mini videos on the legal topics that affect our lives. Like this one on commercial real estate law.
