561.500.ECHOWhat do ya do – Part 3
Due Diligence and Closing the Transaction
Welcome to Part three of our series “What do ya do?” where we have explored what it is we do as agents to add value to the transaction. In this section, we look at the final steps to finishing the transaction positively. After searching for our clients, we negotiated a price and terms for the sale. Now, it is time to “Do the Due”. No, not Mountain Dew. We mean due diligence.
Previously, we recorded a piece focusing on this topic. Now, we investigate how it relates to a close, how clients utilize the results found through the process and ultimately, come to terms on whether to close on the property. I am Howard and this is part three in our series by Echo Commercial.
Due diligence is the period in which a company can inspect, examine and test all aspects of the property. We spoke a great deal before about environmental examinations, and there are several other categories of inspections. These can include title and survey reviews, physical analysis of the building and property and zoning checks to confirm that the buyer can do what they want to do on the property.
Often, the longest part of this phase is dealing with the government on permitting and zoning. While environmental and structural exams can be done in weeks, we are reminded regularly that government moves at the speed, and efficiency…of government. We do our best to know the individual players in each municipality so that we might be able to help the process come to a quicker conclusion.
After the due diligence phase is done, we look for a “clear to close.” This is the directive that both parties are satisfied with the deal, and that the title and closing officers have deemed the transaction clean. Before we break out the celebratory beverages, we need to prepare both parties for the closing process.
Preparation for closing includes following a long checklist of items needed regarding: financing, an owner’s affidavit, sales proceeds forms, payoff statements, invoices requiring payment, confirmation that there is no additional work or construction going on the property, 1031 information, if applicable, organizational documents for the buyer…trust me, there is more…just appreciate that there is a lot that must be accounted for.
So, there you have it. A successful close and everyone is happy! Celebration time, indeed. Wait…we are forgetting an important part of what we do.
Our next step, perhaps our last step for the time being, is to help the new business owner market their new acquisition. Echo Commercial offers several items to our clients so that they can get a leg up on launching their business.
For one, we have a long list of service purveyors that do everything from build-out to painting, HVAC to pest control. Also, we have an in-house video team that can produce an interview style advertisement. Yes, the same talented, good-looking guys that produce our videos here! Echo commercial is proud to produce and amplify the message, so we help drive people to the new location. Helping with the launch is just another thing that we do here. If you would like assistance with securing a particular real estate investment, I can be reached at 561-889-2735 or howard@echocommercialproperties.com.
Howard Freedland is our Echo Commercial Properties Real Estate Specialist. As an independent wine broker, Howard has executed international deals with corporations and conglomerates. While working with Echo Fine Properties, Howard is a part of a team currently managing the interests of national and international companies wanting to secure land and property in South Florida. All of his prior business experience has brought him to this point as a professional, effective real estate leader. You can contact him on 561.889.2735 or Howard@EchoCommercialProperties.com.
