Commercial-Business Owners, SBA 7A, 504, Conventional
There is nothing more rewarding for a business owner than to be able to own the property for which they conduct their business. Being able to own the property instead of leasing parallels benefits of renting a home versus owning, however, there are many more perks of owning your commercial building versus leasing it. The ability to depreciate the building, not having to worry about rising leasing costs, being able to use the building as a long term investment asset after retirement are just some of the benefits.
Here at Elevate Real Estate, we want to help you with your Vision of owning your commercial property. Edi Santos, our leader at Elevate Real Estate knows very well the ins and outs of helping business owners purchase their commercial properties. With over a decade in financing and banking, Edi understands the financial vehicles available for businesses owners when it comes to financing. Whether it be an SBA 504, SBA 7a (Both require only 10% Down Payment) or a conventional loan, Edi understands how the underwriting process works. He is keenly aware of what the banks or financial institutions need in order to qualify for such loans, after all, he worked as a Commercial Loan Officer teaching other bankers about cash flow analysis.
Whether you are looking for medical space, warehouse, office or mix use property, rest assure that you’ve come to the right place. With our 1,2,3 Process, we will help you each step of the way fun and exciting as you come closer and closet to making your vision to life!
Our 1,2, 3 Process:
1.The 1st Meeting: Meeting for the first time allows us to get to know you as a client. It is very important that we understand who you are and how your business operates. We also want to know what your values are as a person. It is also important that you feel comfortable and open when working with us. We typically like to meet our clients at one of two offices in El Segundo(The Point & 431 E. Grand Ave), however, we are also very open to come directly to you at your office. Aside from building rapport and getting to know each other’s personalities, we must also get to business. Be prepare to discuss the following topics:
1.Amount Available For Down Payment and preferred financing vehicle:
1.SBA 504, SBA 7A, Conventional, Banking Institution
3.Type of property (Office, Commercial, Mix Use)
3.The Search: Once we know how much you are looking to invest towards your commercial property, the ball is in our court. We will work in finding properties that fit the the parameters discussed. We will not waste your time looking at properties that are outside of the discussed parameters. We will identify specific properties that we believe are a good fit for you and we will email you pictures, available videos, specs etc. directly to you email. We will also call you directly when we have found hidden gems. Going to personally visit these properties, walking through them, reviewing the specs will allow us to calibrate the market price of what you are looking for. Visiting properties will also allow us to have conviction when we find the right property for you. As we look at these commercial properties, keep these key points in mind.
2.Condition of the property
3.Possible Environmental Issues
4.The Offer: Once we have found the right property, it comes down to getting ready to make a strong offer that will put us ahead of possible competing offers. This requires a combination of number crunching and psychology. Understanding what the impact of a monthly payment is per $5,000 or $10,000 plays a critical role here. If there are multiple offers, it is important that we understand what the comps are in the area and decide how bad we really want a specific property. Being able to establish good rapport with the selling agent or owner is also of extreme importance. Agents want to work with people who they feel are confident about and respect. Having an MBA, having the background in banking plus being a veteran typically resonates well with other agents who are looking to work with other agents that are competent in their field. We will carefully draft an offer letter that will highlight all the good qualities of you as the buyer. Typically, we attach the following information to the offer:
1.Well written offer letter
2.Pre-approval from the bank or lending institution
3.Proof of funds
5.Financials (If necessary)
Once an offer is accepted, the rest is relatively simple, yet important. Escrow will open, inspection and appraisal will need to be order etc. Our biggest priority is to make sure that we are looking out for your as the buyer, assuring that any potential risks are reviewed, acknowledge and mitigate as quickly as possible. Whether you are an experience investor or a first time investor, rest assure that we will carefully review all documentation from Escrow, Title and the listing agent to assure that all the t’s are crossed and I’s are dotted and address any areas of concern.
As daunting as it may seem, purchasing your first commercial property is relatively not any more difficult than when you purchased your first home (with a few added twists). Our job is to help you along the way through the process so that you can make the reality of your investment property come to fruition not in abstract far away time, but as quickly as possible. We truly believe that our 1,2,3 process will bring results sooner versus later. There is no greater joy for us than to see our client’s dreams come to fruition and to provide results through integrity and innovation.