Commercial real estate is commonly divided into four categories namely (I) Retail which includes hotels, malls, shopping centers, medical centers and retail stores. (II) Office this includes office building. (III) Industrial this includes warehouses, farm land, industrial properties industrial property and garages. (IV) Multifamily (apartments) and also residential income property apply; this includes apartments and income generating residential property. This however only applies in some states where this can be qualified for borrowing and for taxing purposes.
Buying and selling of commercial real estate, especially around the world, is considered a major undertaking. The purchase and sale of commercial property differs from residential in that there is no orthodox agreement forms and because of the lack of statutory mandates for monies placed in escrow. In addition, because of the many financial obligations that underlies the whole process, such as financing agreements, structured deals, liens and laws that are set by the municipal council, all these plus a few more like the lands rates and other smaller attributes all sum up the complex web, that is associated with the buying and selling of the commercial real estate.. Keep these steps in mind.
Step 1 Get a professional
Get help in negotiating the terms which are in the acquisition, development, construction, financing and selling of the industrial and commercial properties. For one to correctly maneuver in this maze the need for a financial consultant like a legal specialist is advisable.
Step 2 Negotiate a good deal
The purchase or sale of special use property like the block hotels or private institution can be daunting, but you can negotiate for a bargain price if buying or a reasonable sale price if selling. Don’t expect the other party to provide you a deal if you do not ask for one.
Step 3 Prepare all documents perfectly
Help in the preparation of all legal documents like permits, warrants and title deeds. Do not depend solely on the attorneys to do so. You need to be vigilant in ensuring all documents are up to par with all legalities and that you understand all terms in each document.
Remember, selling commercial real estate has more legalities than the sale of residential property.
Gary Spirer holds a bachelor’s degree in Literature from New York University graduating magna cum laude, and an MBA in Finance from Columbia University.
Mr. Spirer began his career at the prestigious investment banking firm Lazard Freres, where he worked at their real estate affiliate. Subsequently, Gary founded his own real estate company, Capital Hill Realty. In real estate Gary has developed, syndicated and invested in properties that in today’s value, aggregate over $500 million. Gary has raised over $60 million dollars from individuals and small funds with 100% success.