If you're preparing to purchase a piece of commercial real estate, you want to make sure that you take the necessary steps. Any missteps could cause problems during the transaction. Commercial real estate transactions can be more difficult to navigate than standard residential property transactions. Before you begin the purchase process for a piece of commercial property, here are four steps you'll need to take.
Gather Your Team Members
If you're going to venture into the commercial real estate market, you need to have a team of professionals. The first member of the team should be an experienced commercial real estate agent. However, there are other professionals who will ensure a smooth purchase. In most cases, you'll need a commercial broker, real estate appraiser, accountant and tax expert. Once you have your team in place, you'll be ready to start your search.
Consider Your Finance Options
When it comes to purchasing a piece of commercial real estate, it's crucial that you consider your financial options. If you have a credit score that might be less-than-perfect, you may need to find additional sources for your financing. First, consider bringing a co-borrower on board for the transaction. Second, consider offering a larger down payment, or accepting a higher interest rate. Finally, consider asking the seller to offer financing or a lease option until you can bring your credit score up.
Obtain an ALTA Survey on the Property
If you're going to be purchasing a commercial property, you need to obtain an ALTA survey. Your ALTA survey will provide all the information you'll need to make an informed decision about the property. Some of that information will include boundary lines, location of primary and secondary buildings and the correct identification of property easements.
Seek Legal Assistance With the Offer
If you've found commercial property that you're interested in, seek legal assistance before you submit an offer. Your attorney will ensure that you generate an offer that is in keeping with the property in question. Once you've decided on an offer, your attorney will be sure that a contract is drawn up that can be submitted to the seller's agent. To avoid problems, you should retain legal counsel throughout the entire real estate transaction.
Don't take chances with your transaction when you're dealing with commercial real estate for sale. The tips provided here will help you avoid problems with your purchase. For questions or concerns, be sure to talk to a commercial real estate service near you.