When you are ready to invest in commercial real estate in Oklahoma, you will need to do your commercial property due diligence. A helpful commercial real estate due diligence checklist will keep you on track as you proceed with your investment.
Commercial Real Estate Due Diligence Checklist
Financing
Of course, you cannot ignore financing in your buying commercial real estate checklist. You will need to provide your lender with all the information they require, such as your financial statement, tax return, license, etc. Naturally, you will need to be in conversation with lenders before making the final purchase.
Documentation
The next step in commercial property due diligence is to collect and organize all of the paperwork, which you will want to share with your partners and lawyer. The seller has a specific timeframe to provide you with the paperwork. Make sure that you receive everything.
Title reports, commitments, and policies
Surveys
Leases
Appraisals
Zoning certification
Governmental notices
Tax bills
Environmental reports
Soil reports
As-built construction documents
Income accounting
Previous site plans
Permits
Existing insurance policies
Security deposits
Schedule of pending litigation
All other records associated with the property
Make sure that you scrutinize the documents to make sure that you have everything and that they are up-to-date.
Operations
You will need your contracts and documentation to work on your operations. Pay attention to the rent, operating costs, utilities, and other income and expenses. Confirm that the numbers add up for your projected income.
You will also need to connect with the tenants. Do not ignore this step in your buying commercial real estate checklist. You can gauge who will want to stay, who is happy with the property, and who is dissatisfied. Keeping your tenants ensures that they stay and pay rent. Finally, consider ways that you can improve operational efficiency as well as the property value.
Inspect
You will also want to do a careful inspection of the property with your team, an inspector, and consultants. Should anything be off, you will want to renegotiate the terms of the sale.
If you need any guidance when you invest in commercial real estate in Oklahoma, please contact our experienced team of experts.