5 General Steps to Purchasing a Building using SBA Financing
Following is a timeline with a list of items that should be addressed during each specific time period. This is a general timing format subject to change according to the specific transaction. It is very important to work with a knowledgeable Commercial Real Estate Broker when purchasing property.
- Pre-Escrow
- Negotiate Contract
- Open Escrow
- Executed Contract
- Refundable Earnest Deposit
- Please note contingency period has not started yet
- Contingency Period (45 Days for example)
- Day 1 – Begins upon Collection of Building Plans & Due Diligence Materials
- Schedule Inspections: Roofer, Electrician, Plumber, General Contractor, etc.
- Collect Feasibility Material: (CCR’s, Budgets, Existing Alta Survey, Phase 1, Tax Bills, Confirm Zoning
- Title Insurance
- Any renegotiating happens within the Contingency Period
- Final Bank Approvals
- END of Contingency Period – Please note Earnest Deposit becomes NON-REFUNDABLE
- Non-refundable (countdown to close) (15 days for
example)
- Continue Contact with Bank
- Prepare to close
- Receive Settlement Statement from Bank
- Close of Escrow– Get keys and Move in!