All Forum Posts by: Francis Louis Vogel Jr

Thanks for the follow up and reply.

Jason,
Without current tenant leases in place it's going to be impossible to get a conventional fixed term fully amortized commercial mortgage on the property. With a seller's record keeping in that bad of shape. Other problems are going to arise that can make this purchase a financial black hole. For example; tax and mechanic liens, deferred maintenance, any tenants sub letting.

If my firm was performing due diligence pursuant to a financing request. We would tell you to walk away.

Russell,

It is in my state. However, our capital sources ask the question "asbestos" and other hazards on their environmental disclosure form(s).

Thanks for replying.

Great post, owning a Vineyard sound pretty cool.

Robert,
The first question should be. Why is the property for sale? Complete due diligence review for this type of investment should be done before presenting any offer. You need to locate a lender or capital source to work with during this due diligence process. They will provide you with a supporting document check list along with possible proposed terms.

Roman,

The ensuing is a generic due diligence check list that my firm uses for the purchase of a commercial property.

Business Financial Supporting Documents:

Bank Statements for Proof and Source of Down Payment Funds

Business Profit & Loss 3 Years

Income & Expense Statement 3 Years

36 Months Detailed Business Bank Statements

Debt Schedule

Property Supporting Documents:

Purchase agreement

Schedule of tenant leases

Copies of tenant leases

Property Title

Schedule of Units with Square Foot Per Unit Excel Format

Schedule of all major improvements to be made with cost breakdown to subject property

Exterior Photos of Subject Property Photos of Parking Lot, Street view

Interior Photos of Subject Property

Subject Property Tax Documents with Amounts

Insurance Binder with Annual Costs

12 Months Utilities

Property Income & Expense Statement YTD 12 Months Trailing

Use of Proceeds in an Excel Format for Improvements to Property

Guarantor Supporting Documents:

4506 (T) executed

Tri merge credit report for all investors

Government issued photo ID copy – Front and Back

Full detail personal and business bank statements YTD for 36 Months YTD

Personal financial statement for all guarantors and investors YTD for 12 Months YTD

3 Years Federal and State Income Tax Returns for all Guarantors and Investors

Articles of Incorporation

Schedule of Real Estate Owned

Schedule of Corporations / Businesses Owned

Debt Schedule

Personal Financial Statement

Income & Expense Statement

Real Estate Owned

Businesses / Corporations Owned

Rent Roll

Schedule of Tenant Leases

Improvement to Subject Property

Business Debts to be Consolidated

Debt Schedule

Enjoyed the post, good luck.

Great post.

Robert,

When you sell the property all material facts have to be disclosed including "Asbestos Floor Tiles"

Enjoyed post.