Your Commercial Or Apartment Real Estate Closing Checklist???

Darin Garman, CCIM

So, what am I doing this weekend??

I am in my Ford Expedition on the way to Madison, WI to see my oldest and middle daughters play in a soccer tournament over the weekend.

Last weekend of fall soccer, then you go to indoor. If you have a kid in soccer, around 14 yrs old and 10 yrs. old respectively, you probably know what I am talking about. If not, just think these three words, drive, sit, watch...drive, sit, watch..kind of like lather, rinse,repeat......Anyway....

Buying and Selling an Apartment or A Commercial Investment Property is a tough deal. Why?

All of the things you must remember!

I just heard of a guy trying to close a 200 + unit apartment property and it fell through.

Want to know why? He did not complete and check off his closing list. He just showed basically showed up and hoped it would all work out. Well. Most of us are smarter than that BUT it pays to be prepared.

Lets run through an example:

I just worked with a small group to purchase a large apartment complex.

Here is my closing list:

1. Utilities Switched Over and Garbage.

2. Current Certified Rent Roll.

3. Separate Check For Rental Deposits.

4. Negotiated Items Done and Acceptable (like work needing to be done)

5. Property rents prorated and credited to me or getting a separate check at closing for it.

6. Insurance purchased and ready to go.

7. Accounts set up and fed id # retrieved. Including Banking and other vendors.

8. All investor contact and account information.

9. All lender docs and closing docs and number in order.

10. Clear Title.

11. Copies of All Leases.

12. All Keys to Property.

The Lesson? Have your list ready to go. Have it ready to go before you go to the closing table AND make sure that you have checked off your items before you close.

Arguably, there could be more, but, this is the top 12.

I will be posting this on my blog soon too with a story about how a guy lost a 200 + unit property (coming soon) because he was not prepared. Keep a look out for it.