Our guest today is Neil Greenbaum, a lawyer who puts together legal documents for real estate investors. In this episode, we break down the anatomy of a commercial real estate deal. If you want to know more about the 5 stages of a CRE deal and the crucial steps for a successful closing, then you don’t want to miss out on this episode! Learn more about Neil and his journey at reiclarity.com!
“It’s your deal. You are the captain of the ship so you better know it.”
In this info-packed episode, we go through the 5 stages of a commercial real estate deal. These stages are the contract, the due diligence, the title period, financing, and closing.
Neil works with investors and puts together legal documents for all parts of the investor journey. According to him, the best way to avoid making mistakes at the beginning of the deal is by building a great team of service providers and always understanding the deal.
He also suggests getting familiar with the timeframe, due diligence, representations, and warranties inside the contract in order to make the best investing decisions. Always check if the numbers match and if the finances are as expected.
After talking in-depth about the contract and due diligence process, Neil shared his advice about the title period. He emphasized the importance of working with the same title company through multiple deals. Because you’re not going to save money on the title because title rates are uniformed, you should try to find a title company that provides the best services.
Neil suggests that the best approach is to start financing from day one. Establish a good relationship with the lender or the broker because it makes the financing aspect much easier.
The final piece of the CRE anatomy is closing. This should be a fairly simple and quick process if you’ve done everything right in the deal leading up to this point.
According to Neil, as long as you are diligent and timely with your processes and you read and understand everything, then your deal should work out. Sometimes you may realize along the way that it’s not gonna work out and you can still pull the plug.
Neil’s 3 pieces of REI advice on what steps to take to turn your side-hustle into full-time real estate investing
- Know your market inside out. Learn everything you can about it, especially now in this current pandemic.
- Understand finances. Know the cash flow of the property.
- Pound the pavement for opportunities. Build a good relationship with your broker and service providers so you can find the best deals.
Mentioned in the show:
Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity.
Special thanks to Neil Greenbaum for taking the time to share so many great insights with us
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