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Investing in property is a great way to utilize the profits from your business. But it’s not a process you want to rush into. Today on the show we go through some of the big questions you have to answer beforehand.
What does investing in property mean?
There are many ways of investing in property. You can buy all different types of property. But ultimately it’s about buying investments that will give a return. There’s no such thing as an actual passive investment but property is as close to passive as you’re going to get.
What kinds of properties can I buy?
There are 5 different types of property.
- The first one is residential property. And that’s the most common. That’s the obviously where you live. And that can be a house. It can be vacant land for residential purposes,
- The second one is industrial property. These are properties that especially designed to allow you to operate industrial manufacturing businesses.
- The third is commercial property. These are commercial businesses like where a law firm can operate from.
- The fourth is rural property. These are properties like farms and other real businesses. No matter where you are you need to be really careful when you’re buying a rural property that you get the right lawyer who knows what they’re talking about.
- The fifth and final one is retail shop like the kind in a large shopping mall.
What do I need to know before I sign?
- Make sure you’re buying the property under the right legal structure
- Make sure you’re paying a fair and reasonable price.
- Decide what the best source of financing for the purchase will be.
- Inspect the property thoroughly as part of your due diligence process.
What is due diligence?
There are a few different things that you can do in due diligence.
The first is conducting council and local government searches about the property. Your local government has records to make sure what’s been built on the property is properly approved and that zoning is correct their rights paid up to date. You need to do searches to make sure that those things are up to date.
Conducting a physical and physical inspection is so important to make sure that you’re getting what you pay for.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.