You start by getting pre approved (even before you start looking at properties). We help with getting pre approved by lenders.
Get preliminary financial docs like rent roll, P&L statements, and lease summary.
Analyze and start communicating with lenders. Negotiate loan terms, underwriting time, the time needed for the appraisal, appraisal process, etc.
Determine the purchase price and issue an LOI and start negotiations.
If all terms are agreed upon, collect:
a. Full copies of the last 3 year’s property federal tax returns or profit & loss statements.
b. Year-to-date profit & loss statements.
c. Current rent rolls.
d. Copies of lease agreements.
e. Most recent surveys if available.
f. List of capital improvements with costs made over the last 3 years.
g. Taxes and assessments.
h. Copies of any leases or other documents relating to the property, including service and maintenance contracts, equipment leases, utility agreements, management agreements, parking agreements, and cross-access agreements.
i. Utility bills for the property from the past 12 months.
j. Any existing warranties on the existing mechanicals and/or building.
k. Copy of recent roof replacement/repair invoices, warranty, transfer documents, and all information pertaining to any roof replacement or repairs.
Get a term sheet from the lender.
Make sure the appraisal is done on time and confirm with the lender that the appraisal report is in, then set the closing date.