CommercialBHC.com -- Next Wave Real Estate Investments, LLC
Timing Your Purchase, Due Diligence, Negotiating - A Few Pointers
DEFINE YOUR OBJECTIVE
. Are you an investor, business owner or what? If you're planning to INVEST in commercial property, what is your financial goal?
BUSINESS OWNERS. What do you NEED in a property that would make it worthwhile to go to the trouble and expense of MOVING your business?
TAKE A LETTER? As busy as you probably are, you can't possibly remember everything you need to know or find out. Take a legal pad with you and prepare to commit your requirements to paper. Your COMMERCIAL SPECIALIST should be a step ahead of you, taking copious notes. Doing this before and during your visit to candidate properties will ensure you don't miss any key info.
ROUND ONE! It's often a good idea to begin with a letter of intent, rather than a detailed offer to purchase. The reason is twofold: first, you can ascertain if the items of primary importance will be deal breakers. Second, it will save time and set the stage for smoother negotiations.
NOT ALL THINGS. In addition to your COMMERCIAL SPECIALIST, you need to have an ATTORNEY and CPA/TAX PROFESSIONAL involved in your purchase.
LEASE OR PURCHASE, OR BOTH? It may be prudent to lease in a particular location if you know or expect your business will rapidly expand. A lease option gives the buyer the option, but binds the seller. A lease purchase binds the buyer as well.
TOP GADGETS. The best thing to take with you is a digital camera and voice recorder. Better still, both combined. A handheld 'handycam' suits many.
HOW MUCH SPACE DO YOU NEED? The difference between gross and useable square footage is that the former includes the exterior walls. If they are very thick, your useable SF could be significantly less.