Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Commercial Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 6 years ago on . Most recent reply

User Stats

98
Posts
32
Votes
Kirsten Ostby
  • Rental Property Investor
  • West End, NC
32
Votes |
98
Posts

Advice on buying Commercial Bldg, without broker, owner to occupy

Kirsten Ostby
  • Rental Property Investor
  • West End, NC
Posted

Looking for some advice on how to handle a commercial real estate transaction with out the involvement of a broker. I'm looking at a few different buildings, and talking directly with the owners about purchasing. The main building I'm interested in has two spaces, one of which my future business would occupy, and the other space has a tenant in place with 4 yr lease remaining. 

I've started the process on a few things: 

financing: working on getting bank financing for the loan above my down payment, 

zoning: started the process of making sure my business would be allowed in the space. 

Lawyers: meeting with two lawyers next week. I'm wondering if having a lawyer to write up/review the real estate contract is one of the more important steps if I don't hire a broker? 

Building Inspector: I haven't started looking for one yet. Any tips on how to find a good one?

Request Lease for review: anything specific that I should be looking for with the current tenant's lease? 

Negotiating purchase price: The current tenant is paying $3200/month rent. Any tips on how I calculate what a fair offer range would be? The owner has started by asking $700k, and I'm thinking closer to 500k. 

What else am I missing? 

I'm familiar with the process of buying and selling Single family homes, but this will be my first commercial bldg transaction. Does anyone here locally have professional contacts you would recommend? 

Thanks!

Tags: Moore County, Southern Pines, Pinehurst, West End, Aberdeen, Raeford, Fayetteville, NC, Hoke County, Cumberland County, 

Most Popular Reply

User Stats

15,174
Posts
11,257
Votes
Joel Owens
  • Real Estate Broker
  • Canton, GA
11,257
Votes |
15,174
Posts
Joel Owens
  • Real Estate Broker
  • Canton, GA
ModeratorReplied

Kirsten if the seller is SO FOCUSED on not paying a buyers broker commission for say 700k at 3% = 21,000 then WHY would they sell a property for 200k less than asking pricing? Just sayin....... : )

If your business occupies 50% of the space then some look at SBA loans.

Your situation has a lot of negatives to it for a broker anyways. Lot's of heavy lifting and low fees with headache and big use of time.

21,000 in commercial space is tiny. Your transaction has many layers of components to it that must be overcome. The commercial attorneys usually make 200's to 300's per hour so this is not the residential space. Plan on spending probably close to 10k on lawyer fees and maybe tens of thousands depending on how complex the transaction gets.

Good luck. No legal advice given.   

business profile image
NNN Invest
5.0 stars
3 Reviews

Loading replies...