First time buyer looking for advices

[Steve Shi]

Dear all, my small family contracting business is looking to buy our first industrial property to serve our business. We found the property we like to purchase and made initial contact with the selling agent and our banks (both personal and business). The property is a small warehouse with a basic office space and is listed for just over $200K. Our current financial situation could afford to put up to $60,000 down and finance the rest. Because this is our first time trying to purchase a commercial real estate, we would appreciate any tips, insights, and advice on the following areas:

• - Do I need a buyer agent? If so, how is a commercial real estate agent paid?
• - Should I finance on the personal side or business side? What are the pros and cons?
• - Any precautions to watch out for when checking out the property for the first time with the agent? Should I contact a professional inspection just like buying a home?

Any tips related to purchasing/financing this type of properties are greatly appreciated! 

Thanks!!

[John Warren]

@Steve Shi the process of working with commercial brokers is a bit different than working with a residential agent. The license is the same (at least in Illinois), so technically there is no such thing a residential agent vs commercial agent. Instead, certain agents specialize in the commercial sector. The main difference you will find is that there is much less cooperation between agents in the commercial space. In general, the commercial agents I know fully intend to source the buyer from the property. They want to be a "dual agent" so that they can get the entire commission. This happens in the residential world, but it is much less common. In addition, some commercial brokers won't even accept a cooperative agent at all. 

• - Do I need a buyer agent? If so, how is a commercial real estate agent paid? If you can use a buyer's agent, then the listing agent is still paid by the seller. The LA would then pay a portion of the commission to the buyer's agent. It sounds like the listing agent has already shown you the property though??? In this case, he/she is probably already procuring cause in the deal. 
• - Should I finance on the personal side or business side? What are the pros and cons? Probably business side. It is going to be a business write off, and you will probably personally guarantee it right? Or buy it yourself and rent it to your business? I would think this is a question for your CPA more than the forums. Too many moving parts here. 
• - Any precautions to watch out for when checking out the property for the first time with the agent? Should I contact a professional inspection just like buying a home? You should have a due diligence period in the contract just like you would when buying a home. You can then have an inspector or other trades check the property out.