Hello again,

On previous blogs we have spoken about the benefits of owning commercial real estate for your business.

Some benefits are below:

– Favorable rates through the Small Business Association (SBA loans)
– Being the landlord
– Tax Advantages
– Portfolio Diversification
– Equity Appreciation
– Passive Cash Flow opportunities
– Use of Line of Credit
– Retirement supplement
– Control
– Wealth Transfer

If this strikes a chord and exploring the option of becoming a commercial property owner seems interesting to you. Let us guide you.

The first step once you contact us is setting up a meeting or a conference call where we can discuss your goals, your current situation, expectations and the vision for your business. Remember, this will be a big step for you and your business, it is a long-term commitment and we want to make sure to take every step with thoughtfulness. We will need to know how many square feet you require, what location would you like to be, what type of property are you looking for, how many parking spaces you require, how many employees you plan to have there, the type of business and if there are any specifications that your business requires to function. Once we have understanding and clear objectives, we can put together a plan of action.

The second step will be to meet a commercial lender. We have a few recommendations, but you can go with any bank you have a relationship with.
This step is one of the most important as it will allow us to know the budget we can work with. Once we know how much you qualify for, then we can move to the next step. By the way, if you are approved for more than what you expect to spend on a mortgage, that is ok. We will work with you budget, but some times business owners think just because they have good credit and been in business for a long time, the bank will lend with their eyes closed. We have seen professionals with over 14 or 20 years in the business with good credit that don’t qualify for the amount they were expecting. Besides to confirm the budget, we will require that pre-approval letter from the bank for most showings. It is common for a seller or listing agent to ask for proof of qualifications before showing a commercial property. If you are buying cash, a bank statement showing enough funds to cover the asking price will be sufficient. Plus, if you do decide to put in an offer, having this proof can sometimes put that offer ahead of other offers.

The third step is to find that perfect location for your business. We will analyze the market in the are you prefer and see what is out there. We will be working day and night to find the space for your company. We will be sending you properties with your criteria and budget, as soon as they come on the market.

Once you select one or a few properties to see, we will schedule viewings to inspect those properties. We will go with you to every showing to make sure we can assist in identifying any visible defects the property may have (which can be used during negotiations), as well as highlighting the benefits we feel fit the objectives created on our initial consultation. With so many years of seeing properties and assisting other business owners, we can get pretty creative in finding that diamond in the rough. We have assisted plenty of buyers in visualizing the potential a property has with some simple renovations. You will be surprise how minor things can completely change the use of a commercial space.

So, lets imagine that we find that dream property for your occupation. The forth step is to write up a contract. We will do an analysis of the property to advise you on the price, terms and if we should include any additional clauses or changes in the contract. You will be notified of anything we feel that can be done to make sure that the contract is accepted and a smooth transaction takes place. At this point we would designate an attorney to hold deposits, prepare closing documents and guide us through execution.

The fifth step you should expect is negotiations. This can take hours, days, weeks or even months, depending on the complexity of the transaction. Throughout this back and forth you can count on us to be looking out for your best interest and putting all efforts in having your offer accepted.

Once the offer is accepted by the seller, congratulations, now our real work begins. This is the moment where most brokers stop working and deals fall apart. Read Part II to learn what are the next steps that are crucial and determine if a successful closing actually takes place.

Sincerely,

Your Trajan Investment Team – Assisting Commercial Real Estate Investors to Prosper!

Trajan Investments, Inc. A Commercial Real Estate Brokerage and Consulting Firm.

Ariel O. Diaz

Lic. Commercial Real Estate Professional

305-482-1118Ariel@TrajanInvestments.com

Claudia Splinter

Lic. Commercial Real Estate Professional

305-482-1118Claudia@ClaudiaSplinter.com