As we say good bye to 2022, it is time…
Fall is upon us. When I think of fall, I think of the start of football season. In football, it takes collaboration and cooperation of the entire team; offense, defense and special teams to win the game. This game strategy is also true in commercial real estate. Having the right members on your team throughout the entire transaction is key.
You might thinking, I already have the right members on my team. That’s great! However, might there be any way to enhance your team? Let me explain.
Teamwork during your commercial real estate transaction and most especially leading up to your decision to transact, will result in you realizing the most benefit from your property.
1. Your financial planner can help guide you to make the right financial choices many years in advance of your desire to purchase your own commercial real estate building or investment. From saving for a down payment to making and earning the most benefit from your company’s annual proceeds
2. Each year when you do your tax planning, it is helpful to have the right CPA on your team to guide you to shelter as much of your tax dollars as possible. Has your CPA ever indicated you could be saving tax dollars simply by owning your own commercial real estate? Your CPA can also advise you on how to categorize your expenses so that when filing your income tax return you are getting the most benefit from your cash flow. CPA’s can also advise on purchase and sale via a 1031 Exchange or other tax sheltering mechanisms. Have you ever wondered if your return has been prepared in a manner which is most advantageous to you and to your company?
3. An attorney specializing in commercial real estate is essential to providing you with important information regarding your rights. We enter into several types of contractual documents where an attorney can advise you of your position in a given section of a purchase agreement or guide you through the clauses of a lease. Note, it is essentially important to understand given the specialized verbiage of commercial real estate contractual documents to retain an attorney who specializes in commercial real estate.
4. Banker/Lender – Most businesses and investors who purchase commercial real estate engage a commercial real estate banker and/or lender. Shopping for the right loan is similar to shopping for a car. We test drive a few prior to making our final decision. I encourage you to shop and test drive several commercial real estate bankers/lenders to find the one that best fits you and your company’s needs. There are lending institutions who specialize in small business lending, medical sales/leasing, retail and shopping centers, industrial and manufacturing, etc. So how do you know where to look for the commercial lender that specializes the area where you specialize? I would advise you engage the knowledge of your commercial real estate broker to help you find the perfect match.
5. Commercial real estate broker – Your commercial real estate broker can help you in more ways than simply helping you find the appropriate commercial real estate. (S)he can assist with introducing you to the experts in the industry who have the knowledge and ability to provide you with the data for you to make the best possible decision regarding your commercial real estate transaction. (S)he can help you sort through the attributes and downfalls of multiple buildings so you can make the choice that is going to enhance your bottom line while you grow your organization. (S)he is an advocate for you, going to bat for you every step of the way. (S)he schedules and attends every appointment with you from City Zoning, to property inspectors. (S)he is your lifeline, the team member who pulls it all together for you and your company to locate, negotiate, shop, strategize and close on the asset that will improve you, your business, the moral of your employees, and ultimately your bottom line. (S)he is the individual who, without such guidance, you would be lost, uninformed and could potentially cause your company to fail.
The aforementioned five members of your team are important as the cash in your bank account. Without them and it, you may make an incorrect decision causing you to not be prepared to buy low and sell high, obtain the best interest rate, negotiate the most favorable contract and shelter all the money you possibly can. You see the teamwork I am referring to is the teamwork of the team who will walk with you throughout the transactions and every year thereafter.
As with football, one portion of the team is simply not as effective as when all portions of the team work together, collaborating, coordinating and striving for the same goal. Our team is here for you to help you meet all of your commercial real estate goals. If you are seeking to purchase, lease or invest in commercial real estate our “Teamwork makes the Dream Work.” – John C. Maxwell