by implications and how to mitigate them? F. Do

by
Aziz Khatri

01/09/18

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Commercial
real
estate
sales
transactions
are very unique and demand specialized knowledge. Very few people
know the ins and outs of a commercial property sales process. The
process is designed to bring maximum return on investment and it’s
vital
to
realize
how to do it.

Commercial
real estate relies on relationships for everything to go smoothly.
The relationships you build in the long run will help decide your
success in selling your property.

This
article is for those who own commercial real estate and:

1.
Want to understand the process.

2.
Want to create the important relationships needed for a successful
transaction.

3.
Want to meet an expert in all phases of selling commercial real
estate.

If
you are interested in selling please contact Aziz Khatri for a free
evaluation and estimate.

Commercial
real estate brokers must know have a plethora of skills to navigate
the process of selling for maximum benefit.

They
should have experience in

commercial
property negotiation,

marketplace
evaluation,

monetary
analysis

interest
based evaluation

real
value based evaluation

training
other commercial real estate agents.

Property
use zoning

tax
impacts

One
of the biggest impacts your commercial real estate broker can have on
your sale is his knowledge of the modern day commercial actual
property process.

There
are three main stages of selling commercial real estate:

1.
Preparation
for sale
2.
The Outreach
3.
The Sales

It’s
important that
each one of these stages is done well so
you get the maximum value for your property. Each stage has specific
milestones that should be done correctly to maximize the return on
your investment:

1.
The Preparation
stage:

A:
The Seller’s Goals Discovery

The
first thing that an expert commercial real estate broker analyzes is
the Sellers Goals. This might include such questions as:

A.
Is realizing capital appreciation the #1 goal of the sale?

B.
What are you planning on doing with the proceeds of the sale?

C.
Is a lump sum preferable to a monthly income (or vice versa)?

D.
Are you purchasing another building via a 1031 exchange?

E.
Are you aware of the tax implications and how to mitigate them?

F.
Do you need the capital for a specific reason?

G.
Is there a “due on sale” clause?

These
questions and more will help you structure your sale to fit your
needs. The answers to these questions can also give you a better
negotiation in the sales transaction and realize greater profits.

B.
Property Valuation:

Buyers
of commercial property are usually very interested in the income they
can derive from the property. So the value of your property is
directly tied to the net operating income of the property. Net
operation income can be influenced greatly by:

1.
Comparable sales prices.

2.
Local commercial real estate leases.

3.
The terms of the sale

4.
Capital terms

5.
Taxes

6.
And more.

Another
way of saying this is the value of the property is determined by
dividing the net operating income with the area’s capitalization
rate. Commercial brokers like Aziz Khatri are experts in helping you
determine these factors so you can get the best price for your
building.

C.
The Marketing Packet
The
marketing packet is the tool that sells prospective buyers on the
value of your building. It’s goal is to put all the important
information about your property in one packet. This makes the buyers
decision much easier
to make and presents your property in the best light. The
elements of a successful marketing packet include:
a.
Design.
Looking
pretty works for real estate and it works for marketing material too.
Aziz and KW have designers ready to create a marketing packet that
is attractive and puts your property in the best light.

b.
Simplicity.
Along with design making the information easy to find and understand
is important to busy professional real estate investors. Make it
easy to find and understand the deal highlights.

c.
The
Story. Why
is this property worth a look? Tell a story with facts that tell an
irresistible story with a hook that pulls in the investor. What
is it’s unique value? Weave a story around that and you’ll pull
in even the busiest investor.

d.
The Photography.
Photos
also tell a story and are the first thing that grabs attention in
any presentation. You should have a variety of high quality photos
that give the buyer insight into the value of the property. These
photos should include a cover photo, aerial photos, the best
exterior angles, etc.

e.
The Financials. The marketing packet is more than just surface
level promotion. It should go into detail about the financial
considerations of buying the property. Things like the rent roll,
net operating income projections, local market data and more. All
these are relevant to investing in commercial real estate and doing
this well will show you’ve done your homework and can justify the
purchase price.

f.
The Polish. In addition to these critical components your
marketing packet should have the important part of any sales document
that increases its credibility and usefulness. These include, the
information disclaimer, the real property highlights, maps, and the
contact’s (broker) identification.

2.
The Outreach
Stage.

A.
Reaching out to Qualified Buyers

One
of your
broker’s primary
responsibilities is to publicize and market your commercial property.
Many commercial property listings don’t even use MLS.

Your
commercial real estate broker knows that the key to a successful sale
is finding buyers who are qualified and appropriate buyers. That’s
why listing on the MLS is often not the key to a successful sale.
Having relationships with nationwide network of seasoned commercial
property owners is an invaluable resource for sellers. Aziz Khatri
will immediately contact his list of qualified buyers and personally
show them the value of your property.

B.
Interviewing Buyers.

Once
indications of interest start to arrive, its important that each
potential buyer be
interviewed in detail to
make sure that
your
time is not wasted. You don’t want your deal to fall apart near
closing because the buyers was never qualified in some way. Aziz
Khatri is an expert at determining the real interest, experience and
resource qualifications necessary.

C. Educate
Buyers
Often
qualified buyers may show interest, but
need more information to commit. Aziz
Khatri is an expert in
educating buyers in all the benefits of your property. There
have been many times when a
commercial property buyer didn’t see the potential in a building
until Aziz enlightened them to its benefits. This
buyer education resulted in moving the purchase forward and
ultimately higher prices for the property.

D.
The Confidentiality Agreement
If
the buyer or seller wants the sale to be confidential the timing of
signing the Non-Disclosure Agreement (NDA) is important. Doing this
after interest has been shown will protect both parties. Its
important for your commercial real estate broker to know how and when
to get this signed. Before
the marketing packet is sent is the best time, since the marketing
packet can contain sensitive information.

E.
Sharing the Marketing Packet with the Buyer.

Once
the preliminaries have been confirmed the buyer will have the
opportunity to view the full marketing packet. The marketing packet
contains high value information and shouldn’t be distributed to
everyone. That’s why its critical for a broker like Aziz to help
create the packet and position it correctly for the buyer.

F.
Seller Meets Buyer

This
critical step usually takes place after the marketing packet has been
sent. If the buyer expresses interest and is qualified the seller and
buyer should meet to begin the sales relationship. The broker is
present at this meeting, and when representing the seller Aziz will
show the seller how to position himself and his words to obtain
maximum leverage and return on investment.

Aziz
has done this hundreds of times and knows how to manage the meeting
for the maximum benefit of his client.

3.
The Sales
stage.

Now
we enter into the final stage of the transaction. With transactions
as important as yours it is important for all of the previous stages
to go smoothly. Now that the negotiation and transaction stage has
been reached your broker will really prove his worth.

A.
The
Offer and Counteroffer

If
the meeting goes well the next step is the offer. The buyer’s
broker will help draft an offer for the commercial property. The
offer usually has information about:

price,
terms, earnest money, bank financing, seller financing, assignment,
due diligence period, closing date, utility charges, seller’s
disclosure, promissory note, deed of trust, and
more.

Once
presented to the seller, a counteroffer can be made on the seller’s
behalf. The commercial real estate broker (Aziz) will guide the
formation of the counter offer and make sure that all the sellers
concerns are accounted for.

B.
Due Diligence

After
an offer is accepted the buyer has the opportunity to do his due
diligence to confirm the property meets all his needs. Your broker
will manage the process of getting the buyer any information he
needs. Making sure that the current tenants use of the property is
as uninterrupted as possible is also part of the brokers job.

C.
The
Inspection

As
part of the due diligence a full inspection is expected by the buyer
and seller. The inspection is also important for any banks,
investors, or partners. A commercial inspection usually has several
different parts, including engineering, appraising, contracting, and
…..

There
are “gotchas” that can derail a sale in this stage and your
broker Aziz will help navigate you through this step.

D.
The Waiver of Contingencies.

The
waiver of contingencies is a _____________. It’s an important step
designed to make sure the seller is protected from aborted sales and
wasted opportunities. Your broker will negotiate the earnest money
and the waiver and make sure that it is signed so the buyer cannot
back without losing his earnest money.

E.
Escrow Closing

Shortly
after the contingencies waiver both parties will want to escrow close
on the property and finish the transaction. Important parts of this
step are escrow agents, title company, any banking or investor
documentation. If this is done in an organized and experienced manner
this can be the least stressful part of the sales process. Everyone
is ready to move on and your broke will help everyone with the many
closing details.

KW
Commercial and Aziz Khatri find you premium buyers.

KW
Commercial is the premier commercial real estate broker in
California. Aziz Khatri specializes in getting maximum value for your
property. He does this by understand that each commercial property is
a business with revenue, income, and real value beyond the building
materials.

Aziz
has ready buyers for multiple types of property. He is an expert in
1031 exchanges and knows how to create financial leverage for his
sellers. He doesn’t settle on the first offer from his network of
buyers, he uses his outreach to create the largest pool of bidders
for your property. He does this with:

1.
Direct mail to known buyers

2.
Direct calls to his network of professional real estate purchasers.

3.
Using the KW nationwide network of qualified buyers

4.
Aziz…please let me know of
any other tools you use to
find buyers.

Connect
with us now at ___________
For
your confidential consultation with Aziz to discover the value of
your commercial real estate and the temperature of today’s market
in your location. Receive your free valuation estimate with no
obligation. There is never any cost to talk to Aziz about your plans
and your property. Call now!

by
Aziz Khatri

01/09/18

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Commercial
real
estate
sales
transactions
are very unique and demand specialized knowledge. Very few people
know the ins and outs of a commercial property sales process. The
process is designed to bring maximum return on investment and it’s
vital
to
realize
how to do it.

Commercial
real estate relies on relationships for everything to go smoothly.
The relationships you build in the long run will help decide your
success in selling your property.

This
article is for those who own commercial real estate and:

1.
Want to understand the process.

2.
Want to create the important relationships needed for a successful
transaction.

3.
Want to meet an expert in all phases of selling commercial real
estate.

If
you are interested in selling please contact Aziz Khatri for a free
evaluation and estimate.

Commercial
real estate brokers must know have a plethora of skills to navigate
the process of selling for maximum benefit.

They
should have experience in

commercial
property negotiation,

marketplace
evaluation,

monetary
analysis

interest
based evaluation

real
value based evaluation

training
other commercial real estate agents.

Property
use zoning

tax
impacts

One
of the biggest impacts your commercial real estate broker can have on
your sale is his knowledge of the modern day commercial actual
property process.

There
are three main stages of selling commercial real estate:

1.
Preparation
for sale
2.
The Outreach
3.
The Sales

It’s
important that
each one of these stages is done well so
you get the maximum value for your property. Each stage has specific
milestones that should be done correctly to maximize the return on
your investment:

1.
The Preparation
stage:

A:
The Seller’s Goals Discovery

The
first thing that an expert commercial real estate broker analyzes is
the Sellers Goals. This might include such questions as:

A.
Is realizing capital appreciation the #1 goal of the sale?

B.
What are you planning on doing with the proceeds of the sale?

C.
Is a lump sum preferable to a monthly income (or vice versa)?

D.
Are you purchasing another building via a 1031 exchange?

E.
Are you aware of the tax implications and how to mitigate them?

F.
Do you need the capital for a specific reason?

G.
Is there a “due on sale” clause?

These
questions and more will help you structure your sale to fit your
needs. The answers to these questions can also give you a better
negotiation in the sales transaction and realize greater profits.

B.
Property Valuation:

Buyers
of commercial property are usually very interested in the income they
can derive from the property. So the value of your property is
directly tied to the net operating income of the property. Net
operation income can be influenced greatly by:

1.
Comparable sales prices.

2.
Local commercial real estate leases.

3.
The terms of the sale

4.
Capital terms

5.
Taxes

6.
And more.

Another
way of saying this is the value of the property is determined by
dividing the net operating income with the area’s capitalization
rate. Commercial brokers like Aziz Khatri are experts in helping you
determine these factors so you can get the best price for your
building.

C.
The Marketing Packet
The
marketing packet is the tool that sells prospective buyers on the
value of your building. It’s goal is to put all the important
information about your property in one packet. This makes the buyers
decision much easier
to make and presents your property in the best light. The
elements of a successful marketing packet include:
a.
Design.
Looking
pretty works for real estate and it works for marketing material too.
Aziz and KW have designers ready to create a marketing packet that
is attractive and puts your property in the best light.

b.
Simplicity.
Along with design making the information easy to find and understand
is important to busy professional real estate investors. Make it
easy to find and understand the deal highlights.

c.
The
Story. Why
is this property worth a look? Tell a story with facts that tell an
irresistible story with a hook that pulls in the investor. What
is it’s unique value? Weave a story around that and you’ll pull
in even the busiest investor.

d.
The Photography.
Photos
also tell a story and are the first thing that grabs attention in
any presentation. You should have a variety of high quality photos
that give the buyer insight into the value of the property. These
photos should include a cover photo, aerial photos, the best
exterior angles, etc.

e.
The Financials. The marketing packet is more than just surface
level promotion. It should go into detail about the financial
considerations of buying the property. Things like the rent roll,
net operating income projections, local market data and more. All
these are relevant to investing in commercial real estate and doing
this well will show you’ve done your homework and can justify the
purchase price.

f.
The Polish. In addition to these critical components your
marketing packet should have the important part of any sales document
that increases its credibility and usefulness. These include, the
information disclaimer, the real property highlights, maps, and the
contact’s (broker) identification.

2.
The Outreach
Stage.

A.
Reaching out to Qualified Buyers

One
of your
broker’s primary
responsibilities is to publicize and market your commercial property.
Many commercial property listings don’t even use MLS.

Your
commercial real estate broker knows that the key to a successful sale
is finding buyers who are qualified and appropriate buyers. That’s
why listing on the MLS is often not the key to a successful sale.
Having relationships with nationwide network of seasoned commercial
property owners is an invaluable resource for sellers. Aziz Khatri
will immediately contact his list of qualified buyers and personally
show them the value of your property.

B.
Interviewing Buyers.

Once
indications of interest start to arrive, its important that each
potential buyer be
interviewed in detail to
make sure that
your
time is not wasted. You don’t want your deal to fall apart near
closing because the buyers was never qualified in some way. Aziz
Khatri is an expert at determining the real interest, experience and
resource qualifications necessary.

C. Educate
Buyers
Often
qualified buyers may show interest, but
need more information to commit. Aziz
Khatri is an expert in
educating buyers in all the benefits of your property. There
have been many times when a
commercial property buyer didn’t see the potential in a building
until Aziz enlightened them to its benefits. This
buyer education resulted in moving the purchase forward and
ultimately higher prices for the property.

D.
The Confidentiality Agreement
If
the buyer or seller wants the sale to be confidential the timing of
signing the Non-Disclosure Agreement (NDA) is important. Doing this
after interest has been shown will protect both parties. Its
important for your commercial real estate broker to know how and when
to get this signed. Before
the marketing packet is sent is the best time, since the marketing
packet can contain sensitive information.

E.
Sharing the Marketing Packet with the Buyer.

Once
the preliminaries have been confirmed the buyer will have the
opportunity to view the full marketing packet. The marketing packet
contains high value information and shouldn’t be distributed to
everyone. That’s why its critical for a broker like Aziz to help
create the packet and position it correctly for the buyer.

F.
Seller Meets Buyer

This
critical step usually takes place after the marketing packet has been
sent. If the buyer expresses interest and is qualified the seller and
buyer should meet to begin the sales relationship. The broker is
present at this meeting, and when representing the seller Aziz will
show the seller how to position himself and his words to obtain
maximum leverage and return on investment.

Aziz
has done this hundreds of times and knows how to manage the meeting
for the maximum benefit of his client.

3.
The Sales
stage.

Now
we enter into the final stage of the transaction. With transactions
as important as yours it is important for all of the previous stages
to go smoothly. Now that the negotiation and transaction stage has
been reached your broker will really prove his worth.

A.
The
Offer and Counteroffer

If
the meeting goes well the next step is the offer. The buyer’s
broker will help draft an offer for the commercial property. The
offer usually has information about:

price,
terms, earnest money, bank financing, seller financing, assignment,
due diligence period, closing date, utility charges, seller’s
disclosure, promissory note, deed of trust, and
more.

Once
presented to the seller, a counteroffer can be made on the seller’s
behalf. The commercial real estate broker (Aziz) will guide the
formation of the counter offer and make sure that all the sellers
concerns are accounted for.

B.
Due Diligence

After
an offer is accepted the buyer has the opportunity to do his due
diligence to confirm the property meets all his needs. Your broker
will manage the process of getting the buyer any information he
needs. Making sure that the current tenants use of the property is
as uninterrupted as possible is also part of the brokers job.

C.
The
Inspection

As
part of the due diligence a full inspection is expected by the buyer
and seller. The inspection is also important for any banks,
investors, or partners. A commercial inspection usually has several
different parts, including engineering, appraising, contracting, and
…..

There
are “gotchas” that can derail a sale in this stage and your
broker Aziz will help navigate you through this step.

D.
The Waiver of Contingencies.

The
waiver of contingencies is a _____________. It’s an important step
designed to make sure the seller is protected from aborted sales and
wasted opportunities. Your broker will negotiate the earnest money
and the waiver and make sure that it is signed so the buyer cannot
back without losing his earnest money.

E.
Escrow Closing

Shortly
after the contingencies waiver both parties will want to escrow close
on the property and finish the transaction. Important parts of this
step are escrow agents, title company, any banking or investor
documentation. If this is done in an organized and experienced manner
this can be the least stressful part of the sales process. Everyone
is ready to move on and your broke will help everyone with the many
closing details.

KW
Commercial and Aziz Khatri find you premium buyers.

KW
Commercial is the premier commercial real estate broker in
California. Aziz Khatri specializes in getting maximum value for your
property. He does this by understand that each commercial property is
a business with revenue, income, and real value beyond the building
materials.

Aziz
has ready buyers for multiple types of property. He is an expert in
1031 exchanges and knows how to create financial leverage for his
sellers. He doesn’t settle on the first offer from his network of
buyers, he uses his outreach to create the largest pool of bidders
for your property. He does this with:

1.
Direct mail to known buyers

2.
Direct calls to his network of professional real estate purchasers.

3.
Using the KW nationwide network of qualified buyers

4.
Aziz…please let me know of
any other tools you use to
find buyers.

Connect
with us now at ___________
For
your confidential consultation with Aziz to discover the value of
your commercial real estate and the temperature of today’s market
in your location. Receive your free valuation estimate with no
obligation. There is never any cost to talk to Aziz about your plans
and your property. Call now!

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