how is the steps for purchase commercial building?

In Buying Property - Asked by karen c. - Feb 27, 2012
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Answer(s)

Soham D.
Broker/Agent
Hermosa Beach, CA

Hi Karen,
First are some preliminary steps that need to be taken before engaging in the process of purchasing a building. You want know why you want to purchase vs. leasing. And then you want to find a good team consisting of a lender, broker, accountant, etc.
Next you want to find the property that best suits your needs; a good commercial broker can help you with this. After finding the ideal property, you shall submit an offer, with the help of your broker. The owner of the property may make a counter offer, and then you may counter back until the price and terms are agreed upon.
Once the offer is accepted, your due diligence period begins. This is where you have the property inspected & analyzed by various parties to check for liabilities, hazards, and the condition. If everything checks out, your financing has to be secured. And through-process, you’ll probably remove contingencies as things work out for you. After all the contingencies are removed you are on your way to owning a new commercial property.
I hope I’ve been helpful, for more details I would recommend reaching out those involved the commercial real estate field in your geographic area and asking about all the steps from submittal of contract to close of escrow.
Cheers,
Soham Dahya

Feb 28, 2012
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Soham D.
Broker/Agent
Hermosa Beach, CA

Hi Karen,
First are some preliminary steps that need to be taken before engaging in the process of purchasing a building. You want know why you want to purchase vs. leasing. And then you want to find a good team consisting of a lender, broker, accountant, etc.
Next you want to find the property that best suits your needs; a good commercial broker can help you with this. After finding the ideal property, you shall submit an offer, with the help of your broker. The owner of the property may make a counter offer, and then you may counter back until the price and terms are agreed upon.
Once the offer is accepted, your due diligence period begins. This is where you have the property inspected & analyzed by various parties to check for liabilities, hazards, and the condition. If everything checks out, your financing has to be secured. And through-process, you’ll probably remove contingencies as things work out for you. After all the contingencies are removed you are on your way to owning a new commercial property.
I hope I’ve been helpful, for more details I would recommend reaching out those involved the commercial real estate field in your geographic area and asking about all the steps from submittal of contract to close of escrow.
Cheers,
Soham Dahya

Feb 28, 2012
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Jay Z.
Broker/Agent
Phoenix, AZ

Not much different from buying a house. You write out an offer stating what you will pay and how you will pay and when you will pay. If the offer is accepted, you start your inspections. Zoning, taxes, neighborhood, building, access, traffic. You read the current leases and meet the tenants. You can ask for estoppel from each tenant to determine what standing they have in your new property. If the property meets your expectations, you bring in your money and close the sale.

Feb 28, 2012
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Nadina C.
Broker/Agent
Phoenix, AZ

I would back up prior to Jay's answer. Work with a local commercial broker or agent who will help you to find the appropriate property and guide you through the process. You will also need to work with a real estate attorney and CPA. You need a team. Don't leave home without them.

Mar 1, 2012
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Glen W.
Lender/Mortgage Broker
Atlanta, GA

You need to be very careful on the commercial front. it is much different than a residential transaction. As Nadina stated you need to make sure you have the appropriate folks to assist you. I would also add environmental consultant. Depending on the property at a minimum you would want a phase one environmental review to make sure you are protected. Good luck

Mar 1, 2012
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