Buying a Warehouse Property
There are at minimum about 15 steps to buying a warehouse property in Austin. This blog is an overview of the process and what it takes to make a good purchase on a warehouse. The first step which is probably more crucial than any other is the borrower or buyer’s credit. Most buyers when buying a warehouse property want to see deals before they have a conversation with their lender. It is critical that before any warehouse property potentials are put in front of you that you have a good handle on what your financing arrangements are. Of course if you are buying a warehouse property for cash , then you don’t need the lender’s approval- just common sense on that aspect.
Financing a warehouse purchase
When financing is required , there are 2 options to you as the buyer. The first is you will be an owner-user , for this type of warehouse property purchase a borrower can put down 10% per the SBA (Small Business Administration) rules and guidelines. One key guideline is that you as the owner of the warehouse property has to occupy a minimum of 51% of the square footage of the space. If you cannot meet those requirements, then a typical down-payment will start at 20% and move up from there, it is all dependent on your credit. Keep in appraisals come into play as well and LTV% and DSC or debt service coverage, you can check these on our homepage at the bottom.
So where are the best deals moving into January 2014? Well, the short answer is you can always check back to our webpage for warehouse properties for sale which tracks actual listings that are on the market currently. We also have an internal tracking of these warehouse spaces as well. During the 2013 year, the better valued warehouse properties were in the outlying areas of Austin, the closer one gets to Austin the more expensive property becomes. It is always a question of supply and demand. The largest inventory was situated in the areas that were Far Northwest and North.
Shire Commercial supports their clients (buyers) who are buying a warehouse property from search, negotiation, offer and contract writing, due diligence help , title company support and everything that it takes to get the purchase done seamlessly for the buyer.