GGToor Inc. (GTOR)

[MsCoffeenut333]

TIMING

To understand negotiating timing issues when buying commercial property, you need to understand that the Seller’s position will be that he’s taking his property off the market with no assurances that you will be able to close.





Here are a couple of examples of timing issues with possible solutions:

1. Seller wants a shorter period to close than is required for you to complete all facets of the Due Diligence, i.e., Seller wants a 30 day close, but you want 30 days for Due Diligence and 30 days to close. br>



Possible Solution 1: Set up periodic times to waive certain issues in your Due Diligence Process. Example: If you have a list of 40 items that you need to verify during Due Diligence, you can stipulate that you will clear 10 items at the end of 15 days, 10 more items at the end of 30 days, etc. This assures the Seller that you’re moving through the process.


Possible Solution 2: If you need more time to complete certain facets of the Due Diligence process, for example, you don’t have time to have a roof inspection done, you can go ahead and close but stipulate that funds from the earnest money deposit be designated to pay for any roof repairs which the roof inspection discloses are necessary.




2. The building is vacant and you don’t want to close until you can find a tenant for the vacant space.

Possible Solution: Buy 2 extensions of 30 days each by putting in more hard money. (Note: The money becomes non-refundable but applicable to the sales price.) This gives you 90 days to determine whether or not you’ll be able to lease the vacant space.


By putting in more non-refundable money to extend your time, you’re giving the Seller money in his pocket to pay for taking his property off the market for that period of time. Also, he feels that you have more money in the deal so you’re more likely to close.

http://www.commercial-real-estate-information.com/beginning-real-estate-investing.html