Dedicating yourself to an idea in a startup company can be an exciting venture, and when that idea takes off into a-full fledged business, it can be one of the best experiences in the world. At a certain point, your startup will need to start looking at real estate in order to fully expand and become the most profitable business it can be. However, there are some things that you should be aware of before making your first real estate acquisition for your company.
Create a Team
The first step in the real estate acquisition process is to create a team of professionals who can help you through the process. Begin by hiring a real estate and business law attorney who can help draft contracts, negotiate the purchase, and handle all other legal matters involving the transaction. Next, you will need a commercial broker to help you locate potential properties for your acquisition. You should also hire mortgage broker for help with the financing of your acquisition in addition to an accountant who will be able to advise you on what properties you can afford, forecast a budget, and inform you of any potential tax breaks on the property. Lastly, if your startup has any tech-specific or other business-specific needs that the property will need to be able to handle, be sure to include an expert in that area in the search for your first real estate acquisition.
Considerations When Making Your First Acquisition
There are a number of considerations that must be made when making the first real estate acquisition for your startup company. Some items to consider before you begin your search include questions like what type of property are you looking for and what geographic area would be ideal for your business? What is your startup’s risk tolerance for this type of acquisition and how much are you willing to put into the venture? By knowing the answers to these questions ahead of time it will make the search and purchase process much smoother for your startup. Consult your team of experts that was created for this process, and they should be able to provide you with many of the answers you need when beginning this venture.
Find a Property That Fits Your Needs
Acquiring real estate for a startup company is very different than purchasing a residential home and as such there are some company-specific questions to keep in mind during the search process. You need to find real estate to acquire that will fit your startup’s needs. The first consideration is location and whether this real estate is in the state, city, and neighborhood best for your business. Do you need to be close to customers, shipping lanes, access rail or highways? Next are legal considerations such as zoning, acquisition negotiations, contracts, and more.
Consider the physical condition of the real estate and be sure to have a full inspection prior to purchase. Be sure to know about any potentially dangerous conditions, liability issues, or environmental hazards before moving forward with the acquisition. Are there any limitations on the real estate, like building codes or municipal laws that may affect how much you can change the real estate to meet your company’s needs. Finally, is there parking or will you need to add that expense to the overall price of acquisition?
Capitalize on Your Space
Although your startup is successful enough to warrant your first real estate acquisition, you should still consider capitalizing on the space in order to make this venture as successful as possible. Depending on the size of the real estate, consider whether there is any room for investment potential or renting out space to other businesses. You can also consider advertising like selling billboard or signage space on your property. Cross-advertising with businesses close by and offer services that might benefit you both, such as access to parking lot space, trash removal, and more.
Call or Contact Our Office Today
Once your startup is off the ground, your first real estate acquisitions is one of the biggest steps you will take as a new company. For legal advice on this and other matters involving your startup company, call or contact Nusinov Smith to schedule a consultation of your business and real estate legal needs.