WHY RENT vs. OWN?
Through the purchase of an individual
units, ownership costs can be substantially
reduced, while still offering businesses their own Deed
of Trust, equity growth and tax benefits... and the
opportunity to custom-design their property to serve
their exact needs and identity.
WHY a CONDO vs. a FREESTANDING BUILDING?
Because available commercial land parcels generally translate
into a 10,000 sq. ft. building. The next
best ownership alternative for
smaller usres is a condo which can
offer ownership at 1,500 sq. ft. or less.
WHAT IS A SHELL BUILDING?
Generally when buying a condo, the buyer is responsible
for building out the interior. The seller is generally
selling a shell building which typically includes slab,
interior walls, roof system, fire sprinklers, glass
store front, rollup door, water and sewer stubbed to
the unit, skylights, and power to building with a feed
to each unit.
WHAT ARE CONDO-OWNER EXPENSES?
Condo ownership has many advantages. Along with those
advantages come some financial responsibilities which
include property taxes, property insurance and building
maintenance.
In a condo environment, shared building costs are paid
monthly to an association which is responsible for paying
for all services on behalf of each owner. Condo ownership
isn’t more expensive than owning a freestanding
building; the bills are just paid differently.
FINANCING
What is the deposit requirement and is it nonrefundable?
A deposit of $10,000.00 per unit is required upon
execution of the letter of intent which is refundable
during the feasibility period (generally 30 days)
Which financial institution(s) do I need to use to obtain
my loan?
Any recognized financial institution that offers such
loans. We can provide you a list of banks that our clients
have utilized that are familiar with this type of property
and transaction.
When do I need to have the financing secured?
Within 30 days of signing the contract, we will need
to receive a letter of loan commitment from a recognized
financial institution.
Is 90% financing available?
If you are financing your business you may qualify for
a small business (SBA) loan. The financial institution
you are financing through will have information or you
may call an SBA provider. If this transaction
is for investment purposes, you do not qualify for SBA
financing. Conventional 90% financing is also available.
What if I cannot obtain financing?
During the feasibility period, we will make every
effort to assist you in securing alternative financing;
however, if unsuccessful in obtaining a loan, we will
cancel your letter of intent and return your full deposit.
CLOSING
What are the typical closing costs?
Closing costs vary b ased on the price of
the unit. Your financial institution will provide you
with the estimated closing costs on your loan. Transaction
closing costs for a buyer are around $1,200 - $1,500
and include title insurance, escrow fee and recording
fees.
When do I close?
Within ten (10 ) days following the completion
of the feasibility period.
What if I cannot close within the ten (10) days?
Beginning on the eleventh (11th) day, you will be assessed
a daily late fee of 10% APR until the closing occurs.
If the closing is not timely, you may lose your right
to purchase the unit and forfeit your deposit.
BUILD-OUT
Who does my build-out?
You may use any licensed contractor. They must
have a general contractor’s license. We
can refer a general contractor to you.
When do I need to line up a contractor?
If you are going to include your interior
build-out in your financing, you will need to
have your build-out number within the 30-day feasibility
period.
How much do build-outs typically cost?
Build-out costs vary depend ing
on your specific needs and the contractor used.
What is included in my unit?
see "what is a shell building"
above
What type of sign can I erect?
There are specific sign criteria requirements. You will
receive a package that contains the specifications for
the signs.
INSURANCE
What insurance do I need to maintain as a unit owner?
Each unit owner will need to obtain coverage for liability
and for their contents.
Do I need insurance on the building?
No, the association holds the insurance on the building
which is covered by association dues.
PROPERTY MANAGEMENT
Who manages the property?
Typically, a professional property management firm is
put in place at the completion of construction to run
the day to day responsibilities of the porject. Some
associations later elect to self manage.
What responsibilities does the property management have?
They are responsible for managing the property, collecting
association dues, paying bills and calling meetings.
Who runs the condominium association?
The association is overseen by a board of directors.
The board is elected by each voting member of the association,
all of which is covered in the condominium documents.
How often are there association meetings?
A mandatory meeting is required annually. as may deem
necessary, the board of the association can call other
meetings.
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