The Essential South Florida Industrial Property Buyer’s Guide

By
Services for Real Estate Pros with InboundREM

Many investors desire to purchase commercial properties because they can be quite profitable. However, it is important to bear in mind that there is the possibility of significant loss. That being said, you need to be familiar with what you're doing regarding the industrial property.


Factories, plants, and warehouses used for the manufacturing or distribution of products are considered industrial properties. Because of its complexity, the purchase process is a challenge to manage.


This buyer's guide for industrial property in South Florida was designed to solve that problem.

 

Check out the original neighborhood post at https://patmcbride.com/.

 

Common Steps in Buying Industrial Real Estate

 

Securing financing – It's generally advisable to cover your funding first so that you can determine your budget before starting to look for properties. It will speed up the process greatly.


Searching properties and negotiating contracts – You will submit an offer once you've found the right place and got your financing in place. Once you accept the offer, your listing broker will forward a contract that your attorney should read before signing. The contract is signed after several revisions.


Performing due diligence – The due diligence period begins after the contract is signed, when you have inspections done, on average, within a month or two.


Coordinating vendors – You will also want to meet with a variety of vendors before you move into your new space. Interior designers, architects, furniture vendors, movers, and IT specialists are just a few of the people you might see at a furniture showroom. Your title will also be in jeopardy, and you'll need to hire a title agent to obtain a title for the property.


Closing the deal – If you did not receive satisfactory results from your inspections, you might need to go back to the seller to renegotiate the terms of the agreement. You will be in the closing period once your due diligence period has ended and assuming all has gone well (usually 30 days). After you sign the documents, the property is yours to occupy.

 

Check out the original neighborhood post at https://patmcbride.com/.

 

Important Aspects of Buying Industrial Property

 

Motivations and Goals

You will begin by examining your motivations for purchasing a property and your ultimate goals for it. Before you invest, it is helpful to understand your reasons for doing so. The process of finding a good investment opportunity is easier if you understand why you want to buy commercial property.

 

Financing

As we mentioned, it is advisable to prepare your financing options prior to searching for a property.

Business credit scores and reports can be utilized if you apply for loans with a lender and the loan type. Some financial institutions might run a credit check on you. To avoid errors, you should verify your credit reports and check to see if the information in them is correct. To ensure that your credit report is accurate, you should check your information for errors and then be as honest as possible when assessing the kinds of loans you may be able to apply for at this time.

The Right Team

If you're purchasing industrial property in South Florida, partnering with and surrounding yourself with a group of qualified experts is an essential component of the process. Successful investors recognize the importance of an excellent team, regardless of the investment environment.

To facilitate a smooth and effective transaction, it may be helpful to team up with the following experts and industry professionals:

-A local agent who specializes in industrial properties
-Accountant
-Commercial real estate attorney
-Commercial lender/mortgage broker
-Tax Attorney

Bear in mind that it is recommended to have your team in place before you begin looking for potential industrial properties. When looking for help, if you know the right person to go to right away, you will know who to ask when questions or problems arise. Choosing to build a team of experts might not be cost-effective, but it may help you avoid costly errors in the long run.

Finding the Right Property

After establishing your purpose, you have your financing and an expert team. Now it's time for the fun part. It's time to begin looking for a good investment in your market.


You should consult with a commercial real estate agent in order to locate properties that fit your specifications. When making your decision, pay attention to important factors, such as square footage and location. While a good investment opportunity might seem alluring, do not forget your reason for investing if it doesn't offer something that is of value to you.

Check out the original neighborhood post at https://patmcbride.com/.

Research

After you've found a possible property that satisfies all your specifications, it's time to get down to the business of thorough research. A great way to start is to work with your agent to gather information, which will help you understand your market and your competition.

There are many inquiries you should make regarding industrial real estate, so consider these queries . . .

-“What has the property been used for in the past? (Do you plan to continue using it for the same purpose?)
-If you wish to use the property for a different business purpose, is it appropriately zoned to support your plan?
-Can you request a change in zoning, if needed?
-What are the property taxes?
-Is the building in need of significant repairs now, or will it need repairs soon?
-Is the property located in a desirable area?
-Does the deal make sense for your investment portfolio?”

The Offer and Deal Closing

To buy a property, make an offer when you locate a property you desire. An offer to purchase commercial real estate generally requires assistance from your commercial real estate agent. Still, it's wise to get your attorney to look over it before you finalize it. It is important to understand that when you enter into a contract, the seller may request earnest money (1% or more of the purchase price, sometimes more or less).


Also, be sure to include a due diligence period and contingencies (e.g., zoning issues and a failed inspection) in your offer.


To meet your lender's requirement, your real estate agent may need to order an American Land Title Association survey (a.k.a. ALTA) prior to finalizing the transaction. An ALTA survey can provide you with valuable information about the property, including borders and where improvements, utilities, and facilities are located (if applicable)."

The deal should be closed if everything goes well.

 

Avoid Unnecessary Risk

-Investing in a new existing property
-Selling your existing property for top dollar
-Looking for land for new construction
-Researching available properties
-Leasing a facility

Check out the original neighborhood post at https://patmcbride.com/.

If you would like to receive a FREE Competitive Market Analysis, contact me today.

 

Let us help you find your perfect home!

 

If you require a Buyer's Agent to represent you during your transaction, please feel free to contact our office at 305-619-2937. We would be glad to work with you to get the best deal possible for your transaction.

**************************************************************

POSTED BY:

Pat McBride
305-619-2937
ComReal Miami – Doral
8200 NW 41st Street Suite 155 Doral, FL 33166

https://patmcbride.com/

 

Comments (0)