HOW WE WORK WITH BUYERS
The Commercial Real Estate Acquisition Process
We Want to Fully Understand Your Needs and Be Aligned with Your Goals
Why are you buying commercial real estate?
As an investment to receive income?
For a new location to operate your business?
Land for a development project?
For the up-leg for your 1031 exchange?
For an adaptive reuse project?
Obviously it's important for our team to understand your situation and the reasons why you are looking to purchase a property so we can be aligned with your goals.
We will also discuss
Type of commercial property you are looking for
Size & price point
Rate of return and how you personally determine that (for income property i.e., cash on cash, CAP rate, NPV or IRR or a combination )
How the property will be managed and leased (for investment property)
Any capital expenditures planned
How the vesting will be structured.
Access to Commercial Real Estate Inventory and Market Data
The next step is to discuss the market, trends and available inventory. We maintain full access to market data and inventory with professional grade tools and also have access to the powerful RE/MAX data network.
Information is vital in order to make informed and profitable decisions in commercial real estate.
Evaluation and underwriting
Once we identify a property we will review it with you and determine if it meets your general criteria. Depending on the property we will arrange a tour and obtain the initial due diligence material.
For an investment property we will do a preliminary financial underwriting analysis to make sure the property meets your return requirements. Often times the stated rate of return statistics for investment income property listed for sale has to be verified and or recalculated.
Offer and negotiation
It is vital to work with experienced commercial professionals, there are 7 basic categories of commercial real estate and over 70 sub-categories and every type of property has different nuances to be aware of. Inexperienced agents / brokers can make serious mistakes that can cost a buyer money.
If the property meets your requirements we will prepare an offer for you to review which will include requirements for disclosures from the seller, both statutory disclosures required by California Law and contractual disclosures requesting additional information we will need to protect your interest.
We also recommend all transactions be reviewed by qualified commercial real estate legal, building and tax professionals prior to the purchase of any commercial property.
Our team will be negotiating on your behalf to ensure we obtain all material facts, obtain a fair price and ensure all documentation is obtained to protect your interest.
Please note we are California State Licensed real estate professionals and laws in other states may be different than what is practiced in the state of California.
Offer, acceptance and due diligence
Once all deal / transaction points have been agreed to, escrow is then open and a good faith deposit will be made directly to escrow.
It is important to use a reputable title and escrow company that have extensive commercial real estate experience. The larger title companies typically have an "in house" escrow department and even "Commercial Services Divisions" with in-house attorneys and commercial experts. This saves time and ensures you are dealing with a company that understand the challenges of commercial real estate.
During the "escrow period" (which can typically can run from 30 days up to 1 year for a large development project) the seller will provide material information and the buyer will obtain inspections and reports to evaluate the property in question, this is typically called the due diligence or contingency period.
During this period issues are resolved and if necessary price adjustments are made.
Closing the sale
Once all issues have been investigated and resolved and the title company has ensured there are no liens or other issues with the title, the transaction can be closed and the property passes from the seller to the buyer and the deal is complete.
WE WORK WITH BUYERS TO SUCCESSFULLY:
Evaluate & Analyze
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