commercial lease agreements<\/a>\u00a0and determine if they are above market, at market, or below market. This is also an important component in securing financing since the lender will perform their own rent analysis and base the loan off of this.<\/p>\n\n\n\n11. Make an Offer<\/h3>\n\n\n\n
Submit an offer to purchase the property, negotiating terms and price with the seller until you reach an agreement. There may be multiple back-and-forths of counter offers until a final agreement is reached.<\/p>\n\n\n\n
12. Secure Financing<\/h3>\n\n\n\n
Following up on your pre-approval, let your lender know that you have an accepted offer and provide them all relevant details of the property to start the loan process. Note that this process can take some time to finalize, depending on the borrower profile and property type.<\/p>\n\n\n\n
13. Escrow & Contingencies<\/h3>\n\n\n\n
Once there is an agreed upon contract, both buyer and seller go into escrow which can usually be 30 days or longer which allows for sufficient time to work through a series of administrative requirements including satisfying loan approval conditions and completing a title search. During this period, the buyer will usually have to submit deposit monies and there may be contingencies that need to be met in order for the purchase process to continue, such as securing financing or a clean environmental assessment.<\/p>\n\n\n\n
14. Environmental Assessment<\/h3>\n\n\n\n
The buyer usually orders an environmental site assessment that involves a licensed professional to come out to the property to perform a physical inspection of the likelihood for contamination. These can be called a Phase 1, Phase 2 or Phase 3. Note that these are often a requirement to secure a commercial loan.<\/p>\n\n\n\n
While in escrow, you shall perform additional due diligence such as obtaining and reviewing estoppel certificates<\/a> to validate rental amounts, and hiring professional inspectors and tradespeople to conduct thorough inspections of the property to assess its condition and identify any necessary repairs or upgrades. <\/p>\n\n\n\n16. Close the Deal<\/h3>\n\n\n\n
Finalize the purchase by completing any necessary paperwork, transferring ownership, and securing the property with commercial insurance<\/a>.<\/p>\n\n\n\n