Purchasing Commercial Real Estate: Tips for Your Business
If your business is interested in purchasing commercial real estate, here are some tips to help make it a smooth transaction.
Planning: Have constructive conversations with everyone who has an ownership interest in the business to make sure everyone is on board and there is a definitive action plan in place. There is a lot of work put into choosing a location, what features will be necessary, as well as upfront and ongoing costs, amongst many others. Also, don’t hesitate to reach out to the local municipal community development department. You will find local staff are happy to answer questions you may have about local properties as well as provide valuable insight about zoning, licensing, construction, and other details you may not have initially considered.
Authority: Part of the planning process should also include reviewing company Articles of Incorporation, By-Laws, or a Partnership Agreement to confirm what steps your company needs to take to formally purchase real estate. Depending on the language and persons involved, you may need an attorney to help you draft amendments or otherwise to help steer the company onto smoother water.
Preparing Your Team: If you have current employees, don’t forget to consider what effect the purchase may have on them and how a purchase may affect your staffing requirements.
Building Your Bench: As you are in the planning stages of any large purchase, be sure to keep a trusted attorney, accountant, insurance broker, commercial real estate broker, and loan officer in the loop. These professionals will be a great resource not only during the transaction phase, but also of value during the planning stage which will help you mitigate risk and cost.
The Money: Depending on your business’ financial situation, tax, and future planning, your company will probably be seeking a loan for the purchase. Most loan officers will require review of items including Articles of Incorporation, business as well as personal tax returns, business financial statements, business plan, insurance coverage, and the purchase agreement, for example.
For more information and to speak further with an attorney about your business needs, do not hesitate to contact our office at (847) 346-5565.
Start writing your post here. You can insert images and videos by clicking on the icons above.