Investing in Commercial Real Estate

Many investors have purchased a primary home and may think the process is the same. Don’t be fooled, purchasing any type of commercial real estate has its own terminology, complexity and process. The following steps will guide you through the process.

5 Questions that will help you identify your ideal commercial investment

  1. What is the objective of your investment?
  2. What amount of time can I dedicate to this investment?
  3. How much money can I invest?
  4. Is this property for my business or strictly an investment?
  5. Who will manage the property on an ongoing basis?

Now that we picked the best types of properties:

  1. Contact your lender to see the different options available for you! 
  2. Get in touch with your trusted attorney.
  3. Start looking for properties!

You Found It

 The price is right!

 The cap rate is good!

 The location is good!

 The cash on cash return is good!

Now we Negotiate

  • Set up a Letter of Intent (LOI) and submit to your attorney for review.  
  • Once price, terms and conditions are settled upon a formal contract and executed. 

Due Diligence Checklist

Does the property have: 

 Roofing damage

 Termites

 Any open permits

 A 40-year inspection

 Restrictions that may limit future intended use

 Environmental issues

 The rate of return that was announced

Closing

  • Get insurance for the property.
  • Get your attorney's final approval.
  • You close escrow!

Congratulations, you're done!