Wednesday, July 2, 2014

The complicated process of financing a purchase

In the sale of real estate in North America, there is a topic that is hub for buyers when analyzing the transaction: how to finance the purchase.

Mainly linked to strategies for growth factors of the investment portfolio, investors seek to employ in each acquisition the least amount of capital possible. Sometimes obtain desired by financial institutions; but preferably in the private sector looking to save time, eliminate errands to do and find flexibility in achieving their goals.

Those with experience in the field and know what they want and what suits them firsthand; but those who venture in the early years of his career as thorny investors in this field should be very alert of their making.

The points to consider are the penalties for prepayments of debt, the clauses governing the mortgage interest note and above all transparency in the chain of title to the property you are buying.

The key elements that motivate an owner to finance the property are selling: retirement plans, defer payment of accrued on capital gains, capital flow control, etc.. Of course, no one will say for what reason you want to finance the sale, so it is to be extreme measures to not buy a property that is in conflict with the building code of your municipality.

As this type of financing property inspection no further investigation or the same in the public records are required, it is very easy to hide behind a convenience for a defect or a problem that would prevent the financing of it through an entity commercial.

The first step for a buyer after having identified a property which will be funded by your retailer, is putting together a professional team to respond and protect their interests. This team should not miss a company recognized and accredited inspections, which will be responsible for inspecting and ensuring the physical condition of the subject property. An attorney specializing in real estate, which will check that the title is not defective in its chain, and weighing charges, demands or open permissions that prevent its transfer or condition the possibility of commercial property; and a counter to alert and advise on all financial.

In this type of trading is not advisable for buyers to sign any document without the approval of the attorney representing them, nor enter into any kind of agreement or negotiation in the absence of a real estate agent who specializes in the sale of commercial properties or entry.

In my many years in this turn of investment property, I have noticed that those who have succeeded have done delegating functions to professionals who have knowledge and experience in the field.

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