Assisting in complicated deals as an Agent
Now, if you have never worked with a commercial real estate broker in Atlanta that is okay. The Office Advisors are here to help. We are a team of individuals focused on the customer. With a Litany of services we offer we consider ourselves a full-service brokerage. Unlike our competition, we will work through complex deals and make sure you get the best outcome. Set of searching Around the World Wide Web all you have to do is visit our website today. www.theofficeadvisors.com.
Fortunately, the office advisors are here to help you navigate through any complex situation. We are commercial real estate professionals. Unlike your typical commercial real estate broker in Atlanta, we worried about you the customer. Will not spend a diary of your money and not force you to purchase or lease any product. Therefore, it only makes good businesses have representation that understands you. We focus on you the client as well as getting the outcome you deserve.
Complex deal situations
starting off a commercial real estate transaction can seem very cut and dry. However, once you dive into the financials as well as the intricacies of a purchase things quickly become more difficult. Therefore it is important to have a good commercial real estate broker on your side. Many have trusted the office advisors for our services in specialized cases. Going the distance for a client and making sure that the outcome is achieved where the closing table actually happens.
The current deal we’re working on is a purchase of a warehouse. The warehouse is located in Marietta and is currently owned by a motorcycle dealer. I’ll go through the general terms of the offering currently. Right now we are just at the letter of intent to purchase stage. Then if agreed will be moving to a purchase-and-sale agreement. However, hopefully, this letter of intent will be put forward quickly and efficiently so the purchase and sale agreement will go forward.
What begins an LOI?
Starting off there’s a general structure to a letter of intent to purchase. At the top of the page we utilize our letterhead and then it starts laying out who is contacted on what date. The beginning is the date May 3rd, 2022 from there it says directed at the agent or owner of the property. We also denote how the letter of intent was sent. They sent the email we include that email address as well.
Then we stayed in fact that we are representing the buyer and want to lay that out and we have been authorized on their behalf to send this letter of intent to purchase said property. We asked if they review these terms in order to proceed to a formal purchase and sale agreement.
Now, any good commercial real estate broker in Atlanta is going to set their best foot forward when offering a product. Everyone typically used a letter of intent to purchase as this is the general first step in the offering process. Many must realize that this is a non-binding agreement and is only there to set out the general term for moving to a binding agreement.
Now we get into the meat and potatoes of the letter of intent. This is where these sellers stated you can put the corporation they are one of the individual’s names if that is the case. Also the same goes for the purchaser it can be a name or a corporation. We didn’t relay out the Brokers at the beginning as well. Stating if there is a real estate entity on each side. Typically there is a commercial real estate broker in Atlanta on both sides of the transaction. Meaning 1 represents the seller and the other represents the buyer. After laying out those generalities and moving on to the next step.
What will it cost and more?
Most people want to know what the offering price is immediate. This particular property is being offered for purchase at just under two million dollars. 1975000 dollars to be exact. The financing is the next portion laid out. Sometimes this can be cash others types of financing however it must be laid out.
According to this letter of intent to purchase the property, the financing is asking for owner financing with a 20-year note and a 10-year balloon payment on there. Seller financing is not uncommon and it seems like a great way for a seller to still make some money off the property even if the buyer defaults. If the buyer defaults the initial seller who is financing the property still made it’s some type of money and now I can retake the property and make more by reselling or doing the same thing again. It’s generally a win-win for the seller.
How much do we have to put down initially?
After that, the earnest money amount is laid out. In this case, they are putting down 10% of the amount as earnest money to be applied towards the down payment of the seller financing portion of the loan. Go be deposited by law into an escrow account. These escrow accounts are generally held by an attorney or the real estate company Representing one of the parties. Is important to understand that there are legal ramifications for contracts as well as guidelines on how to disperse earnest money if things go south.
After the Earnest money section, we have the due diligence. Which is laid out as well. The Due Diligence period here in this case they’re only asking for 30 days. 30 days on the property like this seems extremely doable and fine for each side of the transaction.
Remembering that the due diligence. Is there to protect the potential buyer and give them time to back out of the purchase so did they find something. They can have any reason to back out during due diligence at is up to them. Furthermore, it is important to have a good commercial real estate broker in Atlanta on your side during the entire process. This will protect you in most cases.
Following the due diligence, the section is about closing. We have closing occurring 30 days after the completion of the due diligence timeline that was laid out. Fungus or some additional terms that our General on a contract.
Some of these general terms include real property taxes and how they’ll be prorated. A purchase contract and when that purchase contract will be delivered after a letter of intent is agreed upon. We’d only put three to five days depending on the situation. Not all commercial real estate brokers in Atlanta utilize the strategy however here at the office advisors we do. Following us agents and commissions are also being about a line in order to make sure people understand who will be paid And how.
trying to be the best commercial real estate broker in Atlanta we make it easy to reach us. All you have to do is visit our website or pick up the good old-fashioned telephone. Do not hesitate to contact us today and we’ll have a licensed advisor reach out to you.
take time out of your busy day to check out this article. Not just always about a commercial real estate broker in Atlanta, but many other factors as well.