3 Things You NEED To Have Before Shopping For a Commercial Property
It can be exciting to want to start looking at commercial properties. If you have decided to take the next step in commercial real estate, you must be prepared for the journey ahead of you. Not being prepared can cost you time, money, and a lot of headaches.
These 3 things are imperative before you start shopping around for properties or financing.
Making sure you have your ducks in order, will allow for a smoother process and an almost seamless transaction.
#1: Have The Right Team of Professionals
An experienced commercial real estate broker and mortgage broker can really help you avoid the wrong kind of transaction.
If you rely on the right people, you can have the expertise needed to get through a complex transaction.
Make sure you ask all the questions and mention any concerns or needs when deciding who to work with.
The right professional will guide you towards the needs that best suit your situation, and will address any concerns right away.
They will advise you and help you maximize the potential of your property and business. Not to mention, if you put in an offer on a property you really like but are unprepared, you could lose out. First impressions matter, so it is important to make an offer with the right team and documents in place.
#2: Determine Your Liquidity
Having a solid idea of how much equity you are able to inject into the property is the biggest step in getting your financing together.
Without a range of what your liquidity for a transaction will look like, you may look into the wrong properties and waste everyone's time.
Once you know your liquidity, you can begin to work with your team in finding the property that will allow you to take on the right amount of debt.
#3: Gather Preliminary Documents
If you are working with a commercial mortgage broker, there will be a preliminary list of documents that you will be required to submit prior to getting an idea of what the terms on your commercial loan will look like.
These preliminary documents allow your broker to look for the right financing in different places.
Once your mortgage broker has put together the loan package, they can submit it to multiple lenders and determine which one will offer you the best terms or fit your needs the best. This process saves you from having to go from lender to lender and explain the purpose of the loan countless times.
The sooner you gather the preliminary documents, the more you will speed up the financing process. Having these documents submitted to your mortgage broker before going under contract is a BIG advantage, since these will significantly reduce the timeline of your transaction.
