Partners You Need for a Successful Commercial Real Estate Deal
When approaching the world of commercial real estate, it is
important that you remember that you are not alone! This world
contains a great number of partners and allies essential to finding,
formulating, and closing a great deal.
Commercial Real Estate Broker
These brokers are in the business of selling property. They do it
for a living, and commonly have a great deal of experience and
contacts across the commercial real estate world. This positions a
broker to be a core ally in finding the right property for you. Not
only do they know of several deals, but also they probably have many
clients just like you and can help you better understand your needs
as an investor.
Mortgage Brokers
A mortgage broker is your partner in finding financing for your real
estate deal. There are several different ways to acquire the capital
necessary to purchase a commercial property. A good mortgage broker
can help you navigate this world and find the right loan for your
financial needs. Additionally, many commercial mortgage brokers are
very experienced in analyzing deals and may be able to help you
validate deals before going in front of a loan officer.
Attorneys
In order to ensure that your rights are protected and that there are
no legal surprises after the sale, retaining an attorney
specializing in commercial real estate is a must. At the very least,
you will need a title attorney to conduct a title inspection and
draft the terms of your closing agreements. Additionally, a good
commercial real estate attorney can help evaluate land use issues.
Should a deal turn sour, a ligation specialist to advocate for your
rights and ensure that you are protected is well worth it.
Insurance Agent
A commercial real estate insurance agent will help you insure many
aspects of your investment against unforeseen circumstances.
Commonly, you will want to insure your property against such events
as fire or tenant damage. However, there are a variety of coverage
options that your commercial insurance agent can offer, ranging from
title fraud to lost income due to zoning changes.
Property Managers
Often, it is not the best use of your time to personally manage the
day-to-day operations of your commercial property. A commercial
property manager (or commercial property management company) will
help maintain the basic operation of your property by collecting
rent and performing maintenance. Additionally, a good property
manager can help improve tenant relations and even help you increase
occupancy with a well-staffed lease office. However, a bad manager
can steal from you, alienate your residents, and even damage your
property.
Contractors
From time to time, you will need to make some capital investments to
your commercial real estate. Most often, this will take the form of
large repairs (roofing/parking lots/heating systems), which simply
break down over time. Also, if you seek to increase the value or
reposition your property, you will need to refurbish or even add on
to the original structure. A good commercial property contractor can
help you find and coordinate the wide range of construction workers
and tradesmen needed to complete large scale development projects.
Escrow Agent
The commercial escrow agent is a neutral third party who simply
holds the money in a commercial real estate transaction until the
final agreement is signed and the property closes. The escrow agent
is ideally a party who can be trusted to follow the escrow agreement
to the letter with impartiality.
Inspectors
During the inspection period, you will hire a wide variety of
specialists to evaluate your potential commercial investment. These
inspectors range from those who check on the structural integrity of
a building to the environmental conditions of the land upon which it
rests.
Maintenance Specialists
Many properties rely on systems to be in top form to continue
operation. One common example is the HVAC specialist who is
certified to maintain and repair heating or air conditioning units
on your property.
It is important to think of each of these vendors as long-term
partners in your commercial real estate investment career.
Especially if you are investing in the same local market, you will
be able to work with proven vendors time and again. As you build
these relationships, each member of the commercial real estate
"ecosystem" can become your ally by providing advice, trending
information, and possibly helping you source deals through their
other clients.
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