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FAQs2020-08-18T09:47:12-04:00

FAQs – Get Answers To All Your Questions About Investing In Commercial Real Estate From Investment Professionals At Perfect RealEstate Investments, LLC. At the end of the day, no matter the questions you have about investing in commercial real estate, you can count on the team at PRI to lend a helping hand. We pride ourselves on going above and beyond for each and every one of our clients, and that’s why we’re happy to answer any other questions you may have. We’re happy to help you determine the following specifics for your unique situation:

  • If you’re making a good investment
  • How much you can make in a year.
  • What the exit strategy looks like.
  • What the look market is doing.
  • How much time you can expect to spend managing your investment.
  • What you can do to add value to a property after making a purchase.
  • Where to go for financing.
  • How long it will take to close.
  • And more!

Our services are absolutely free to investors — and whether you have experience investing or this is your first time, we can help walk you through the entire process. We know that it is common to fear losing money on bad investments, a lack of ROI, or not having time to manage a property, but when you choose to work with Private RealEstate Investments, you can count on us to provide you with time-tested advice and practical solutions.

Investing in commercial real estate can be confusing for newcomers. The good news is that at Perfect Real Estate Investments, we’re here to help.

Learn the Ins and Outs of Commercial Real Estate

FAQs – Get Answers To All Your Questions whether it’s investing in a retail property or buying a hotel, there’s a lot to consider when it comes to determining which opportunities best meet your needs. By working with Perfect RealEstate Investments, you can rest assured that we have your goals in mind. Take a look at our most frequently asked questions below, then contact us today to get the help you need. We look forward to working with you!

We’ll guide you through the following property types and find the right fit:

    What are the benefits of making an investment in a particular type of commercial real estate?2020-07-20T09:10:10-04:00

    Single Tenant Retail

    Multi-Tenant Retail

    • Retail tenants have a vested interest in maintaining their store and storefront because if they don’t, it will affect their business.

    • Higher rent.

    • Longer lease terms.

    Office

    Industrial

    • Long-term tenants.

    • Low maintenance.

    • High demand.

    Multi-family

    Hospitality

    • Good return on investment.

    • Pride of ownership.

    • Fastest appreciation.

    What are the phases of acquisition?2020-04-20T08:43:07-04:00

    1. Identify property

    2. Negotiate the deal.

    3. Identify and choose a lender.

    4. Procure from seller all documentation required by the lender.

    5. Get preliminary title commitment from the title agency.

    6. Inspection.

    7. Negotiate remedies for any problems found in the inspection.

    8. Amend the contract if needed or anything changes.

    9. Ensure the appraisal is done and it is a proper one.

    10. Ensure underwriting is done on time.

    11. Set closing date.

    12. Close.

    What steps are involved in negotiating a deal?2020-04-20T08:42:12-04:00

    Unlike residential deals where a contract is issued with a purchase price by the buyer and if the seller signs it, you are in-contract, commercial deals start with a non-binding LOI.

    LOI spells out the following terms:

    1. Purchase price.
    2. Amount of earnest money deposit being offered.
    3. Buyer’s choice of the escrow agent.
    4. How the balance of the purchase price will be paid.
    5. Within how many days the buyer will execute a purchase contract after all terms are accepted.
    6. How long the feasibility period is.
    7 How many times and for how many days the buyer has an option of extending the feasibility period (if any).
    8. If there is any additional deposit being offered if the buyer exercises this option.
    9. If the deposit is refundable.
    10. Within how many days the buyer will close after expiration of the feasibility period.
    11. What the real estate broker commission is and who pays it.
    12. What documents the seller will have to provide and within how many days.
    13. How the closing costs are split between the buyer and seller.

    The LOI is drafted as a document that is sent to the sellers. From there, the sellers would “red-line” the document with changes that he/she wants and the buyers can counter these on the same document with their “red-line.” If lawyers are involved, they will also add their own comments and changes to the same document. This can go back and forth a number of times until all terms are agreed on by both parties.

    Based on the final version of the LOI, the buyer then submits a draft contract that will contain other legal terms. This too can go back and forth as a red-lined doc. Once this is finalized, we are in contract!

    What steps are involved in securing funding?2020-04-20T08:40:39-04:00

    Step 1

    You start by getting pre approved (even before you start looking at properties). We help with getting pre approved by lenders.

    Step 2

    Get preliminary financial docs like rent roll, P&L statements, and lease summary.

    Step 3

    Analyze and start communicating with lenders. Negotiate loan terms, underwriting time, the time needed for the appraisal, appraisal process, etc.

    Step 4

    Determine the purchase price and issue an LOI and start negotiations.

    Step 5

    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.

    Step 6

    Get a term sheet from the lender.

    Step 7

    Make sure the appraisal is done on time and confirm with the lender that the appraisal report is in, then set the closing date.

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