Start by setting up an appointment early on with your accountant and financial partners to establish a budget and get pre-approved for financing.
Setting up a sound budget in the beginning can be effective in negotiating your offer because you know what you can afford. You can find a great property but if it’s way over your budget then you shouldn’t put yourself and your company at risk.
Remember to explore all your options for commercial real estate financing. Keep in mind that your budget has to cover more than just purchase price. It will also need to cover items such as environmental and structural assessments, renovations, moving, down time during the transition, land transfer tax, legal fees, any realty commission and an amount for contingencies.
Lastly, your bank may need additional documentation for financing such as additional up-to-date financial statements for your business or an environmental report from an approved accessor. Knowing what your bank will need before agreeing to financing and what conditions you will need to meet can save time and frustration when it comes to closing a deal.