subject: How How to Perform Commercial Property Due Diligence in a Down Market (An Investors Guide) Part One [print this page] Part One: TIME Part One: TIME
Time is critical when you begin any negotiation for a commercial property. You will have a clause in your contract for a specified time period to perform your Due Diligence. Allow thirty days as an absolute minimum, but always ask for more time than less time. Since time is critical once you have begun to negotiate a contract, begin your search to substantiate the facts as presented while you are in the process of presenting a Letter of Intent (LOI). It takes approximately two weeks to transition from a Letter of Intent submission to a formal Contract. If you're reasonably certain the seller will agree on the Contract, begin your property facts review immediately.
The Escrow Agent will take the Contract and create a calendar of important dates occurring between the Contract signing and the scheduled closing date. This list of "Critical Dates" are important to you the buyer AND the seller. If the Escrow Agent does not provide this list, ask for it. Schedule your Due Diligence activities using the Critical Dates List. This will allow you time to re-negotiate terms or sales price on a property. Make sure your Due Diligence process is complete several days before the end of the Due Diligence period as defined in the contract, this will allow time for this critical re-negotiation process to occur.
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How How to Perform Commercial Property Due Diligence in a Down Market (An Investors Guide) Part One
