The mountains of western North Carolina, and in particular the area known as The High Country, are known for their bustling towns and tourism. The High Country of North Carolina, which consists of Boone, Blowing Rock, Banner Elk, Newland, West Jefferson, Jefferson, and North Wilkes, makes for an attractive investment when it comes to commercial real estate.
Many of the towns and cities in the High Country are actively rebuilding and upgrading their quaint downtown areas. Naturally, there are buildings for sale that are ripe for investors with a keen eye.
Buildings for Sale in the Mountains of North Carolina: Commercial Real Estate
When it comes to commercial real estate, it is important to recognize that it is very different from residential real estate. Many of the same buying principles differ between the two processes. When it comes to buying buildings for sale, prospective buyers need to realize that are no consumer protections in place. Furthermore, the contracts are much different than those used when buying a home. The primary way in which buying a commercial property is different from buying a residential property is the financing that is involved.
Commercial vs Residential Financing
The primary purpose of a commercial property is for it to produce income. Commercial lenders are more concerned with the income-producing capability of a property, rather than the borrowers’ ability to repay the loan. While having good credit and cash to make the down payment are still important, lenders tend to look out if the property will be able to produce enough income to pay expenses such as insurance, taxes, the loan payment, and still have money left over in order to keep the business viable.
For this reason, lenders view commercial property loans as higher risk than residential loans. This means borrowers can expect to pay at least 20% down in cash, as well as take on high-interest rates. A typical commercial loan is a fixed-rate, 3,5, or 10-year loan and often includes prepayment penalties. Additionally, borrowers can expect longer closing times as well as costly inspections, appraisals, and environmental reports.
Know What Type of Building You’re Looking For
Our biggest recommendation to those who are looking to buy a building in Boone, Blowing Rock, Banner Elk, Wilkesboro, and the surrounding areas is to understand which type of building will best suit their needs. There are many different types of investment properties: Retail, office, medical, warehouse, hotel, hospitality, and more. As an investor of commercial real estate, it is vital to understand which building for sale will suit your investment needs. As with nearly all things real estate, having a plan in place for what your commercial real estate building will look like will pay off in the long term.
Wright Properties: Commercial Restate Agents in Boone, Blowing Rock, Banner Elk, and Ashe County
If you’re in the market for commercial real estate and looking for a building for sale in the NC Mountains, then connect with Wright Properties today! Wright Properties has the skills, knowledge, network, and expertise to help you purchase commercial real estate at the best value imaginable. Contact us today to learn more about commercial real estate services that include planning, consulting, buying, and selling commercial properties in the High Country of North Carolina.