Even if you have no knowledge of real estate, you can make money in commercial real estate by forming a partnership with a general contractor. Unlike the residential real estate market, the commercial real estate market is booming. Many real estate investors have switched from investing in the residential market t the commercial real estate market.
The first thing you need to do before building commercial real estate to sell is to find a good location. Know the area and what is needed. If you are interested in building a strip mall, for example, you will want to make sure it is successful. Look for an area where there is a lot of new residential real estate to find the perfect location for your strip mall.
You will have to make sure you can get the property zoned for business use. This will involve going to the zoning board of the municipality in which the property is located and applying for a rezoning permit. You can make your property purchase contingent upon getting the proper zoning.
The property will need to have ingress and egress which means you can get in and out of the property from the public road. If you have to cross over private property to get to your property where you are planning on building commercial real estate to sell, you will need to get an easement from that property owner. An easement that benefits your property is one in that gives you the right to use other property for your own benefit.
You will also have to make sure that sewer, water, utilities, curbs, sidewalks and lighting are in place. If you are building a business such as a restaurant, make sure that you have enough parking for the establishment. Most municipalities have restrictions on parking for businesses so as to insure enough spaces for the establishment without impeding on the street or surrounding properties.
If you plan to act as your own general contractor, you will have to submit your building plans to the municipality for approval prior to getting a building permit. If building a restaurant or other food establishment, you should get an environmental report to make sure the soil is not contaminated.
Once you have received your building permit, you can begin building commercial real estate to sell. Once your building is completed, whether it is a free standing store or strip mall, you can be ready to settle the property with the buyer. In most cases, when building commercial real estate to sell, you will have buyers for the property before completion. If you do not get a buyer prior to completion, you can rent the property out until you get a buyer. In some cases, this may work out better as a buyer is more inclined to purchase commercial real estate that is already established than vacant property.
Mark Moebius
CEO
MILJONAIR Development
MiljonairDev.com
636.300.9000
3451 St. Albans Rd. Suite 5B
St. Albans MO 63073
