Are you looking forward to buy a bank building for sale? Such an investment has some particular benefits. Firstly, you will have total control over your domain. There is no chance of a rent increase; plus the property appreciation value may go up. Plus, all relevant costs and depreciation value are tax-deductible.
However, you may have to invest big, which may cut down your cash flow significantly. Moreover, you will have to bear the expenses of repair or renovation work.
It will be a great advantage if the bank building for sale you have chosen fulfills all your requirements, and also, have items from your wish list. It will make the whole investment more viable. Yet, you must complete some due diligence to reduce risk and make sure you are investing in the right place.
Besides the physical condition of the structure, you have to assess many intangibles, too. Do a thorough research of the building’s history, to make sure no unpleasant after-purchase surprises await you.
Take a Month to Perform Due Diligence
Before inking any deal, ask for a month long window to complete a broad examination of all documents including maintenance contracts, leases, title documents, and insurance policies.
Assign Your Acquisition Team
Prepare a list of issues and questions that you need to sort out. Is the maintenance contract satisfactory? Is the type of guarantee issued satisfactory? To check these things out, assign accountant or real estate agent, surveyor, lawyer, environmental specialist, and building inspector. After assigning a task, be sure to follow up with them.
Financing a Bank Building for Sale
A proper cash flow projection and business plan is the precondition to determine what exactly you can afford. Take help from an accountant while working with the figures. Also take in account, potential borrowings in the future and, as well as, growth. A big real estate loan will set a bar on any future lending that you are likely to apply for.