If you are ready to invest in commercial real estate in Oklahoma, it is time to begin the purchasing process. You may think, “How long does it take to buy a commercial property?” The answer depends on various time-consuming factors such as the appraisal and the loan process. Here are some basic steps to consider.
Your Due Diligence
You should always perform due diligence on a property. A commercial real estate broker, such as Horizon Commercial Real Estate, can help speed up the process with their understanding of market conditions. Due diligence also includes checking on the following information:
- Property taxes
- Vacancy rate
Once you have completed the due diligence on the property, you will need an appraisal.
A commercial real estate appraisal will determine the valuation of a property using one of several approaches. The property appraisal is helpful for new loans, taxes, and eminent domain. The appraiser will carefully inspect the property and take into consideration other factors such as the market and comparable properties to determine value. Appraisers book quickly, so it may take time to get an appointment scheduled.
It is crucial to begin working on your financing as quickly as possible if you plan to invest in commercial real estate in Oklahoma. The time that it takes will vary for each property. Purchasing commercial real estate takes quite a bit of money upfront, but the lender needs to make sure that you can repay their loan. Having the necessary information ready will help speed up the process. Most organizations require:
- Your financial reports
- Tax returns
- Three months of tax returns (at minimum)
- A business plan
- Information about collateral
Many financial institutions will also require you to provide an appraisal by a third party to establish the value of your purchase. You can improve your chances of receiving a loan by making larger down payments, reducing debt, or bringing on investors.
Invest in Commercial Real Estate in Oklahoma
If you still wonder, “How long does it take to buy a commercial property?,” know that time it takes to close on your commercial property will decrease if you work with professionals like Horizon Commercial Real Estate. Contact us to make purchasing your next commercial real estate property faster and easier.