If you are interested in a real estate acquisition for investment or development, there are several items to consider. First, you will want to decide which type of property you’d like to purchase and your budget.
Depending on the price of the property, it may be necessary to meet with a lender to obtain a mortgage pre-approval, a line of credit, or similar financing. Once you choose the property to purchase, it’s important to have a full inspection of the property.
An inspection may uncover condition issues with the property, items that need to be repaired or mitigated. If there are major items that need to be addressed, those may factor into the price negotiations.
Once you agree on the purchase price, financing or other conditions with the seller, you will sign a purchase agreement that outlines all terms and conditions of the sale. At the closing, you will sign all final documents, transfer funds and finalize the sale. Then, the property ownership is transferred to you.
Potential disputes
Because of the complexities involved in real estate acquisitions, disputes can arise. These can include problems with the property’s title, liens or unpaid taxes.
There can be issues with zoning restrictions or environmental requirements that can affect how you use the property.
There can also be issues with maintaining the property or tenant-related problems that can be difficult to manage or may require hiring a property manager to address. It’s important to understand the real estate market in the area before you purchase the property.
