How do you complete your first commercial deal?

[Michael Glaspie]

I am a realtor and have a buyer looking for a multi-family apartment complex. I understand the underwriting procedure and know that even if I can provide the nominal NOI and market CAP rate the buyer needs to go through a much more detailed analysis. What is the recommended due diligence period of a commercial property? Also, what is a good 'rule of thumb' when it comes to an Earnest Money Deposit??

[Rick Louallen]

1%

Contingent upon satisfactory review of sellers 2016 and 2017 schedule E's, as well as a certified, year to date, Profit and Loss for 2018. Also contingent upon satisfactory review of all units, leases, rental agreements, deposits, income and expenses by Purchaser within 20 days of receipt from Seller. This to include copies of all utility bills for the 2018 calendar year. Seller shall provide such documents and information, which they believe to be true and accurate, within 5 days of acceptance of contract.