Found commercial lot to buy now what??

Question

What are the key points to have before I purchase? Survey, perk etc? How do I know I could build on the property?

Answer 1

if u really like it then buy it!!!

Answer 2

1st... whay do you need a commerical loan? What are you going to build on the land? Is the are zoned commerical only? If you are looking to build a 1-4 unit residential structure then you can do a standard home loan for the property and construction...

If you are looking to build on this lot the first thing you should be doing is checking with the city as to what the current zoning on the property is; this may dictate all by it's self if you want to buy this property.

Assuming that the zoning is correct and you already know what your going to build then you need to decide what type of financing you need. You can do a straight lot loan for the purchase of the property, you can do a construction loan which can incorporate the purchase of the land into the loan or you can do a construction to permanate loan which includes the land, the construction and then converts to a permanate commercial loan. With a lot loan you will need an additional loan to finance the construction of your building. At the end of the construction period the loan will be due which means that you either need to pay it off or secure permanate financing. With a construction to perm product you only have one loan to worry about.

As far as what reports to do at this point... do none. Commercial lenders are going to want a phase 1 enviromental report, survey and appraisal but these items will need to be ordered by them. If you do this on your own your throwing your money out the window. I would talk to the current owner and determine if there has even been any manufacturing on the property, filling stations, auto repair shops etc. If there has been then you will most likely need a phase 1 and phase 2 report. Phase 2 is where they drill into the dirt and take core samples. If there are or have been undergroung storage tanks there then walk away.

Lastly... if you need to do a commercial loan then keep in mind that you will need to come into the property with cash. There is not really a 100% commerical loan out there. Most lenders will want 20-40% down depending on what your going to build on the land.

If you would like to discuss what options are available, drop me a line.

Kevin 866-562-6838 x 106
[e-mail]

Answer 3

1) Check Zoning to Match Planned Idea

2) Verify Financial Liens on Title

3) Conduct Environmental Investigation

4) Verify sewer, water and power

5) Check for Tax Credits for Development

6) Check Tax Assessment report for quick Appraisal

7) Contact Bank Officer get pre-approved

8) Negotiate Price

9) Get Started.

Answer 4

Contact a general contractor.

Answer 5

you need to have the land inspected to see if you can build on it.