Would you like to know as a Buyer, the best ways to implement a plan to purchase an Austin warehouse? Buyers have a few options that can help them purchase a warehouse with more efficiency. Here are some strategies to implement to save time , money and effort on your part and the commercial real estate broker’s part as well.
What comes first? Money or the Property?
Over the past 11 + years, a lot of Buyers have called asking about purchasing an Austin warehouse, the first question is (can you guess?) – How will you purchase the property? When this question is asked, you have 3 options at your disposal.
- Financing- using a lender to help you purchase the warehouse , SBA 10% down if you are an owner-user , or 20% + down if you are an investor or just want to keep your mortgage payments lower.
- Owner financing- if it is avail, there may be qualification criteria such as putting more money down that you anticipated
- Cash- simple.. you pay for the warehouse with your own funds
Finding an Austin Warehouse?
So there tends to be an idea of let’s find something first then I will get the financing, you can do one or two things.
- Have your financing pre-approved or secured with cash that you already have or..
- Putting a property under contract with a financing contingency
If you want to purchase the Austin warehouse and your broker does find you a property that fits, now you have to determine if you even qualify to purchase it if you are financing the deal. Buyers whom have some type of pre-approval in place pro-actively are better suited to find the right warehouse and then put it under contract. Can you put a warehouse under contract and make it contingent on the financing? The answer is yes in most cases unless the Seller does not allow for contingency financing. Where are the properties located? A question that comes up all the time, expected and a good one. However, it all depends on the market, the current Austin Market for 2015 for August has only 12 listings in the 2500-5000 SF range and 12 listings in the 5000-10000 SF range. Your pre-approval for funds is a very pro-active strategy you can implement to help your purchase. Bottom line, no money , no property regardless of where it is or what it costs.