Stephenson Fournier
Get Timely, Responsive Advice 713-629-9494 |
Menu Contact

Tips for entrepreneurs joining the commercial real estate market

The commercial real estate market is booming. Entrepreneurs that are looking to join this market either individually or with a group of like-minded investors can take steps to better ensure the process goes smoothly once they find the right property for their investment purposes.

Financial backing can set you apart.

Commercial real estate transactions can require significant up-front investment. Raising funds to back a deal before moving forward with an offer will help a sale move forward smoothly, but it is not always easy. If conventional financing is planned, a preapproval letter can meet this need.

Tips to get a preapproval letter.

When dealing with a financial institution for a preapproval, these two tips can help:

  • Only as strong as the weakest link. This adage holds true when it comes to getting a loan to back a commercial real estate transaction. Lenders often review the investor group that is working to put the deal together. As noted in a recent piece by Forbes, a single member of the group with a bankruptcy or criminal record can disqualify the entire group.
  • Preparation is key. For conventionally financed acquistions, it is helpful to have a preapproval letter. This may require a personal or business balance sheet and credit report for each investor. Tax returns are also often required.

Although these tips can help your group get the financial backing it needs to move forward with a commercial real estate transaction, financial backing is only one of many considerations to take into account before jumping into the commercial real estate market. Additional considerations before completing a sale include due diligence and tax planning. An attorney experienced in this specific niche area of the law can help better ensure a smooth transition into the commercial real estate market.

No Comments

Leave a comment
Comment Information
  • Primerus | Member, International Society Of Primerus Law firms
  • Legal leaders
  • Lawyers-of-Distinction-2019
Email Us Today

Contact Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Location

3355 West Alabama St.,
Suite 640
Houston, TX 77098

Phone: 713-629-9494
Fax: 713-629-9606
Map & Directions