Last week I reviewed the steps in buying commercial real estate. Whether you’re buying to house your company’s operation or simply to enjoy the rent a parcel produces, the steps are essentially the same.
The possible exception could be the financing portion, which some investors abandon in favor of deploying large sums of cash into the buy.
Today, I will complete the orbit and describe some deal challenges that can occur and some suggestions on how to overcome them.
From last week:
Due diligence, also referred to as a contingency period, ranges from as few as 15 days to as long as 90, and a ton of work must occur during this time frame. Financing must be secured, title exceptions approved, inspection of the building – roof, electrical, HVAC, etc. accomplished, vesting documents drawn, financial aspects of the tenancy – if any – analyzed, and environmental health diagnosed.
Whew! Within each of the main categories of approval, there are…