Buying process for Commercial ?

Question

What is the process for buying a commercial building or a church? We have the funds but want to know the process.

1.

2.

3....ect

Ronald Rohde · Answer

• Acquisition of existing building closing processWhat needs to be done?Ensure that the negotiated for deal terms reflect what parties expect$1,000,000 for a 10,000 square foot building with a single tenant, deposits? Personal guaranty? Tenant financials?Seller wants to provide everything caveat emptor “Purchaser beware”Purchaser wants as much assurances prior to closing, certain Seller reps and warranties will survive, but typically hard to enforce post-closingPossible solutions include escrow account for highly volatile circumstancesThe parties involved SellerSeller’s Agents i.e. managers, engineers, leasingPurchaserPurchaser’s Agents i.e. engineers, surveyors,Seller BrokerPurchaser’s BrokerSeller’s AttorneyPurchaser’s AttorneyTitle CompanyEscrow AgentLenderWho does whatSeller is responsible for approving the submitted documents from Purchaser in a reasonable timeframe, but typically not a contractual dutyPurchaser typically proposes LOI, PSA for initial term discussionBrokers are responsible for conveying information and negotiating their client’s position based on market comparablesAttorneys negotiate detailed terms within written agreementsIn some cases, can act as a party’s broker if a deal is unrepresented by a commercial brokerTitle company provides title insurance subject to listed exceptionsCan also act as escrow agent to hold Earnest Money and Purchase MoneyIn the event of a dispute, title is often very neutral and requires both parties to sign a release consenting to liquidated damagesLender will engage in some due diligence on the value of the assetMay require changes to loan terms based on documents discovered during escrow period
• What needs to be done?Ensure that the negotiated for deal terms reflect what parties expect$1,000,000 for a 10,000 square foot building with a single tenant, deposits? Personal guaranty? Tenant financials?Seller wants to provide everything caveat emptor “Purchaser beware”Purchaser wants as much assurances prior to closing, certain Seller reps and warranties will survive, but typically hard to enforce post-closingPossible solutions include escrow account for highly volatile circumstances
• Ensure that the negotiated for deal terms reflect what parties expect
• $1,000,000 for a 10,000 square foot building with a single tenant, deposits? Personal guaranty? Tenant financials?
• Seller wants to provide everything caveat emptor “Purchaser beware”
• Purchaser wants as much assurances prior to closing, certain Seller reps and warranties will survive, but typically hard to enforce post-closing
• Possible solutions include escrow account for highly volatile circumstances
• The parties involved SellerSeller’s Agents i.e. managers, engineers, leasingPurchaserPurchaser’s Agents i.e. engineers, surveyors,Seller BrokerPurchaser’s BrokerSeller’s AttorneyPurchaser’s AttorneyTitle CompanyEscrow AgentLender
• SellerSeller’s Agents i.e. managers, engineers, leasing
• Seller’s Agents i.e. managers, engineers, leasing
• PurchaserPurchaser’s Agents i.e. engineers, surveyors,
• Purchaser’s Agents i.e. engineers, surveyors,
• Seller Broker
• Purchaser’s Broker
• Seller’s Attorney
• Purchaser’s Attorney
• Title Company
• Escrow Agent
• Lender
• Who does whatSeller is responsible for approving the submitted documents from Purchaser in a reasonable timeframe, but typically not a contractual dutyPurchaser typically proposes LOI, PSA for initial term discussionBrokers are responsible for conveying information and negotiating their client’s position based on market comparablesAttorneys negotiate detailed terms within written agreementsIn some cases, can act as a party’s broker if a deal is unrepresented by a commercial brokerTitle company provides title insurance subject to listed exceptionsCan also act as escrow agent to hold Earnest Money and Purchase MoneyIn the event of a dispute, title is often very neutral and requires both parties to sign a release consenting to liquidated damagesLender will engage in some due diligence on the value of the assetMay require changes to loan terms based on documents discovered during escrow period
• Seller is responsible for approving the submitted documents from Purchaser in a reasonable timeframe, but typically not a contractual duty
• Purchaser typically proposes LOI, PSA for initial term discussion
• Brokers are responsible for conveying information and negotiating their client’s position based on market comparables
• Attorneys negotiate detailed terms within written agreementsIn some cases, can act as a party’s broker if a deal is unrepresented by a commercial broker
• In some cases, can act as a party’s broker if a deal is unrepresented by a commercial broker
• Title company provides title insurance subject to listed exceptionsCan also act as escrow agent to hold Earnest Money and Purchase MoneyIn the event of a dispute, title is often very neutral and requires both parties to sign a release consenting to liquidated damages
• Can also act as escrow agent to hold Earnest Money and Purchase Money
• In the event of a dispute, title is often very neutral and requires both parties to sign a release consenting to liquidated damages
• Lender will engage in some due diligence on the value of the assetMay require changes to loan terms based on documents discovered during escrow period
• May require changes to loan terms based on documents discovered during escrow period

• What needs to be done?Ensure that the negotiated for deal terms reflect what parties expect$1,000,000 for a 10,000 square foot building with a single tenant, deposits? Personal guaranty? Tenant financials?Seller wants to provide everything caveat emptor “Purchaser beware”Purchaser wants as much assurances prior to closing, certain Seller reps and warranties will survive, but typically hard to enforce post-closingPossible solutions include escrow account for highly volatile circumstances
• Ensure that the negotiated for deal terms reflect what parties expect
• $1,000,000 for a 10,000 square foot building with a single tenant, deposits? Personal guaranty? Tenant financials?
• Seller wants to provide everything caveat emptor “Purchaser beware”
• Purchaser wants as much assurances prior to closing, certain Seller reps and warranties will survive, but typically hard to enforce post-closing
• Possible solutions include escrow account for highly volatile circumstances
• The parties involved SellerSeller’s Agents i.e. managers, engineers, leasingPurchaserPurchaser’s Agents i.e. engineers, surveyors,Seller BrokerPurchaser’s BrokerSeller’s AttorneyPurchaser’s AttorneyTitle CompanyEscrow AgentLender
• SellerSeller’s Agents i.e. managers, engineers, leasing
• Seller’s Agents i.e. managers, engineers, leasing
• PurchaserPurchaser’s Agents i.e. engineers, surveyors,
• Purchaser’s Agents i.e. engineers, surveyors,
• Seller Broker
• Purchaser’s Broker
• Seller’s Attorney
• Purchaser’s Attorney
• Title Company
• Escrow Agent
• Lender
• Who does whatSeller is responsible for approving the submitted documents from Purchaser in a reasonable timeframe, but typically not a contractual dutyPurchaser typically proposes LOI, PSA for initial term discussionBrokers are responsible for conveying information and negotiating their client’s position based on market comparablesAttorneys negotiate detailed terms within written agreementsIn some cases, can act as a party’s broker if a deal is unrepresented by a commercial brokerTitle company provides title insurance subject to listed exceptionsCan also act as escrow agent to hold Earnest Money and Purchase MoneyIn the event of a dispute, title is often very neutral and requires both parties to sign a release consenting to liquidated damagesLender will engage in some due diligence on the value of the assetMay require changes to loan terms based on documents discovered during escrow period
• Seller is responsible for approving the submitted documents from Purchaser in a reasonable timeframe, but typically not a contractual duty
• Purchaser typically proposes LOI, PSA for initial term discussion
• Brokers are responsible for conveying information and negotiating their client’s position based on market comparables
• Attorneys negotiate detailed terms within written agreementsIn some cases, can act as a party’s broker if a deal is unrepresented by a commercial broker
• In some cases, can act as a party’s broker if a deal is unrepresented by a commercial broker
• Title company provides title insurance subject to listed exceptionsCan also act as escrow agent to hold Earnest Money and Purchase MoneyIn the event of a dispute, title is often very neutral and requires both parties to sign a release consenting to liquidated damages
• Can also act as escrow agent to hold Earnest Money and Purchase Money
• In the event of a dispute, title is often very neutral and requires both parties to sign a release consenting to liquidated damages
• Lender will engage in some due diligence on the value of the assetMay require changes to loan terms based on documents discovered during escrow period
• May require changes to loan terms based on documents discovered during escrow period

• Ensure that the negotiated for deal terms reflect what parties expect
• $1,000,000 for a 10,000 square foot building with a single tenant, deposits? Personal guaranty? Tenant financials?
• Seller wants to provide everything caveat emptor “Purchaser beware”
• Purchaser wants as much assurances prior to closing, certain Seller reps and warranties will survive, but typically hard to enforce post-closing
• Possible solutions include escrow account for highly volatile circumstances

• SellerSeller’s Agents i.e. managers, engineers, leasing
• Seller’s Agents i.e. managers, engineers, leasing
• PurchaserPurchaser’s Agents i.e. engineers, surveyors,
• Purchaser’s Agents i.e. engineers, surveyors,
• Seller Broker
• Purchaser’s Broker
• Seller’s Attorney
• Purchaser’s Attorney
• Title Company
• Escrow Agent
• Lender

• Seller’s Agents i.e. managers, engineers, leasing

• Purchaser’s Agents i.e. engineers, surveyors,

• Seller is responsible for approving the submitted documents from Purchaser in a reasonable timeframe, but typically not a contractual duty
• Purchaser typically proposes LOI, PSA for initial term discussion
• Brokers are responsible for conveying information and negotiating their client’s position based on market comparables
• Attorneys negotiate detailed terms within written agreementsIn some cases, can act as a party’s broker if a deal is unrepresented by a commercial broker
• In some cases, can act as a party’s broker if a deal is unrepresented by a commercial broker
• Title company provides title insurance subject to listed exceptionsCan also act as escrow agent to hold Earnest Money and Purchase MoneyIn the event of a dispute, title is often very neutral and requires both parties to sign a release consenting to liquidated damages
• Can also act as escrow agent to hold Earnest Money and Purchase Money
• In the event of a dispute, title is often very neutral and requires both parties to sign a release consenting to liquidated damages
• Lender will engage in some due diligence on the value of the assetMay require changes to loan terms based on documents discovered during escrow period
• May require changes to loan terms based on documents discovered during escrow period

• In some cases, can act as a party’s broker if a deal is unrepresented by a commercial broker

• Can also act as escrow agent to hold Earnest Money and Purchase Money
• In the event of a dispute, title is often very neutral and requires both parties to sign a release consenting to liquidated damages

• May require changes to loan terms based on documents discovered during escrow period

James G. · Answer

1. Find the deal (and Simultaneously find the money)

2. Negotiate/work with your lender on getting funding

3. Give your lender requested docs, appraisal, etc.

4. Close on the deal

Is this what you are asking? Any specific questions that I can help you with?

Joel Owens · Answer

The process varies by asset class within commercial and the deal size. 10 million loan you might be dealing with a national lender. 1 million loan usually the local banks and credit unions. Church loan they likely want relationship banking with deposits etc. and for the operators to live close by to the church and the bank.

Buying process for Commercial ?

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