Buying a Commercial building can be an intimidating process. There are steps to take to insure a productive and efficient outcome. Being prepared and organized are key to a successful transaction. Below are 9 general steps to consider in the purchase of a commercial building.
- Define Criteria and goals for commercial property investment.
- Secure financing and get pre-approval for commercial loan using SBA or conventional financing.
- Research, visit, and perform due diligence on potential properties.
- Submit offer, negotiate terms, and finalize purchase agreement.
- Conduct property appraisal, environmental, ALTA survey and inspections.
- Negotiate deficiencies found in number 5 above.
- Set up contractors and prepare renovations for when property closes.
- Obtain insurance for commercial property, coordinate closing through the title company.
- Manage post-closing transition, including lease and turning on property utilities.
It is always a good idea to refer to a licensed commercial broker when purchasing or leasing property.