Purchasing commercial real estate in the Bay Area can be a solid investment. Whether you are considering buying property in Oakland, Pleasanton, San Leandro, or anywhere in the Bay Area you will likely find a wealth of appealing options available. However, you will need to consider certain details before signing a purchase agreement. The following are some of the steps worth taking prior to buying Bay Area commercial real estate.
The Proper Steps to Purchasing Bay Area Real Estate
Determine a Payment Plan
Before signing a purchase agreement, you should know exactly how you will be financing your purchase. Note that, unlike with a residential mortgage, a bank loan for buying commercial property may require a balloon payment after a specific number of years. You should anticipate this, and have a plan in mind to refinance before that balloon payment comes due if you expect to keep the property.
Be Very Clear on the Terminology
Make sure that you understand the terms of the purchase agreement before you to sign. Once you sign the contract, you are bound by its terms. If your background is not in commercial real estate law or contract law, you should consult with a Bay Area real estate attorney who can help you understand your commitments and identify any potentially problematic terms for you, the buyer.
Know What the Expenses Will Be
Make sure you know the expenses of owning commercial real estate in the Bay Area. Some expenses, such as property taxes, insurance and routine maintenance, will be fixed. Other expenses will be variable, and some will be unexpected. Consider budgeting a reserve for unexpected as well as planned maintenance and repairs.
Establish a Team of Experts
It is important to have a team of commercial real estate professionals working for you. Retaining a Bay Area commercial real estate attorney with a background in commercial transactions, as well as commercial real estate industry professionals with knowledge and experience in the local commercial real estate market, can help you address the complexities of the commercial real estate purchase. If you are a small business owner, you might not have the time to stay updated on the latest, most relevant real estate laws and practices. Thus, be sure to hire professionals that can help protect your interests, saving you time and helping you avoid legal or financial disasters.
Contact a Bay Area Commercial Real Estate Attorney
Investing in Bay Area commercial real estate can be complicated. Before making any purchasing decisions, make sure that the property is right for you and that you understand the terms of any leases affecting the property and the expected return on investment. Secure a commercial loan, and have a reasonable plan for paying it off.
Poniatowski Leding Parikh Law Corporation can assist you in purchasing Bay Area commercial real estate. Contact our team to speak with an experienced commercial real estate attorney by filling out our online contact form, or by calling one of our following Bay Area law offices.
Castro Valley law firm 510-881-8700
Oakland law firm 510-671-0887
Pleasanton law Firm 925-400-8087