National Brokers Network

Commercial real estate guide for the small business owner

Making the decision to buy commercial real estate is easy; the part where it’s time to execute the plan is when the going’s going to get tough. As a business owner, you are probably really awesome at what you do and there are very few things you consider yourself to not be an expert in. Is buying commercial real estate one of them? If so, you’ve come to the right place.

Admittedly, buying commercial property is a costly undertaking – something investors should not take lightly. As a business owner, it is crucial to exercise due diligence in all facets and phases of the project. After all, there are lots of different issues that can arise along the way, namely:

•Inadequate planning
•Financial shortage
•Construction issues and unexpected costs
•Layout errors
•Safety and environmental lawsuits

As you can see, there are many things that can go wrong if you are not vigilant every step of the way. Here’s a look at five major points to pay special attention to when acquiring commercial real estate.

1.The local real estate market – local markets have varying laws covering tax rates, land, and environmental issues.

2.Finances – everything from the budget to the approved loan amount need to be in order before anything else. That means going through lenders and checking out different financing options before choosing the most suitable arrangement.

3.Taxes – an accountant intimately familiar with the ins and outs of tax implications in real estate purchases is going to be extremely helpful in this situation.

4.The layout – the right layout can tremendously improve a building’s capacity.

5.The builders – established builders that produce quality work and have a good reputation need to be sought out for this sort of project to work. Conduct a credit check for a look into the builder’s financial history, if necessary to avoid future problems with money.

Not mentioned in the list, but absolutely vital to any commercial property acquisition is the business real estate broker. Someone with expertise in commercial real estate can help expedite the search for a suitable property and provide valuable advice and insight into the purchase.

Confidentiality Agreement

In Consideration of the Vendor of the subject business, or any other business introduced to the Proposed Purchaser and their agent National Brokers Network (“the agent”) providing information to the Prospective Purchaser, the Prospective Purchaser agrees:

1. To keep all information provided confidential in respect to the subject business and any other business introduced to the Prospective Purchaser by the Agent.
2. That no information is to be disclosed by the Prospective Purchaser to any third party without consent by the Agent;
3. That it will not use for themselves. Or for others benefit, such information other than to Purchase the subject business or other business introduced by the Agent;
4. That any agreement to purchase the whole or portion of the business shall be exclusively through the Agent;
5. To immediately return to the Agent all such information and other details in written form including any drawings and any copies made of written information, notes, summaries or extracts of any document therefor if any when requested by the Agent;
6. Under no circumstances will the Prospective Purchaser make direct contact with the vendor of the subject business or other introduced business without the prior written consent of the Agent;
7. If the Prospective Purchaser breaches this agreement or buys the business direct from the Vendor, the Prospective purchaser is liable to and indemnifies the Agent for any and all losses the agent may incur including economic loss and loss of income.v

Client Signature (Sign on the box below)