Apartment owners understand that the amount of profits they end up with is a direct result of the amount of money they are able to finance when they purchase or refinance alongside the price that they ultimately obtain for the property upon its sale. A savvy investor starts optimizing the property through both good business and legal planning from the very beginning to get the biggest loan possible and highest sale price. The process begins before you ever contact a lender or list the property for sale.
Be Prepared When Entering Into a Contract to Sell a Property:
Have Your Documents Organized: The easiest way to overlook something or proceed with negotiations is to be unable to come up with a document or “proof” of a claim when you need it. Have all necessary documents accessible and available to you at every point during the selling process. Be able to produce them quickly and efficiently if necessary.
Be On Time/Meet Deadlines: Don’t assume you’ll be “reminded” of important dates and deadlines. Handle your own affairs; keep track of your own important dates and deadlines. Figure out a system so that you are never the one running late because you thought the appointment was tomorrow. Again, this puts you at a disadvantage. You want to be the one that everyone involved in the deal looks to for the answers because their reliance on you for the information they need subconsciously places you in a position of power before negotiations even begin.
Work with an Experienced Real Estate Attorney: Don’t assume things will go as planned. Even a savvy investor who has bought and sold countless properties will look to their real estate attorney at times during the process. Different situations can alter the way in which the law applies. Laws change and interpretation of law can be altered by court decisions. Your job is to know everything there is to know about your business and your properties. Your real estate attorney’s job is to know everything there is to know about the law and how it pertains to and could affect your property sale.
Avoid “Standard” Contracts: The use of a standard contract implies that you assume the deal is going to be standard. There are no standard deals. Generate a contract specifically for your project, your buyer, your property, and your transaction. The increased level of detail and clarity can only help you avoid disputes throughout the process and later down the road.
Don’t Pin All Your Hopes and Dreams on One Buyer: Never let yourself get into a position of NEEDING a buyer to close on the deal. This can lead to a drastic decrease in the amount of profit you take away from the closing table. Always remember that this is just one buyer. If they back out, you find another one. Never treat them like they are your only option. This could lead to low offers, one-sided terms and less of a “good” deal for you.
If you aren’t prepared when you enter into a contract to sell a property, you will end up paying for the lack of preparation by missing out on potential profits that could have been yours. Get in touch with an experienced southern California real estate attorney today to ensure that the profits from your commercial property sale are maximized and protected. Call The Law Office of Retz & Aldover LLP – we’re ready to assist you!