“Chance favors those in motion”
At Beck-Reit Commercial, we stay moving - and in a market this fast, it can make all the difference. In order to stay quick, efficient, and effective, we’ve outlined the Buying process and relevant protocols below so we can all start off on the same page.
On Beck-Reit Commercial’s Communication Protocols
DeLea communicates via email exclusively.
All emails must cc. office@beckreit.com
Pre-Search Items:
Lender Letter: a letter from your bank or lender confirming estimated account balances and/or confirming approval for a loan near the purchase price stated in offer. Here is an example of one Beck-Reit uses when writing offers on a property.
Find out bank requirements, make sure you’re adhering to their requirements
Appraisal
Environmental studies
Personal Financial Information
Building Inspection
Phase I: Searches, Tours
Once we agree to help you purchase a property, we’ll start searching high and low for listings. This process includes email blasts to our personal contact list of over 3,000 local agents, lenders, and industry leaders advertising your requirement.
We will also utilize CIB email servers in Austin, Houston and Dallas, each hosting over 5,000 members in order to connect your requirement with agents and brokerages around the state who may have off-market listings.
Phase II: Offers
In this market you must make strong offers to compete. There’s no back and forth with LOI’s - an offer will likely swoop in and take the opportunity out from under you. There’s no low-ball offers either, you will be outbid. At Beck-Reit, we use a time-tested method to give us the best bite at the apple possible. It goes as follows:
We submit full-price offers, at the very least 97% in unique circumstances.
Assuming there’s no structural concerns, renovation work to be done, or zoning issues - 30 days feasibility, 30 days to close. We’ll know whether it’s a dud or not fairly quickly, especially on a property in turn-key condition.
Once we have the property under contract, we can negotiate price reductions, feasibility extensions, or other reasonable contract items if circumstance requires, but we negotiate from a position of strength, having already gotten the property under contract.
Phase III - Under Contract
Once a property goes under contract, the following process will play out.
Earnest Money must be delivered to title within 3 days. Wiring instructions will be sent by title company along with receipted contract.
Hiatt will send a Critical Dates List and Contact Sheet - these documents outline the sale process as agreed upon in the contract, as well as contact information for all relevant parties.
Buyer Schedules any building and/or environmental inspections required by lender.
The contract will play out as agreed upon, with Survey, Title Commitment, and Requested Property Information being the first few items to be delivered.
Upon review of these preliminary items, we will decide whether to move forward with the contract, renegotiate, or terminate.
Confirm Property Zoning.
Confirm Use per City of Austin.
Confirm Certificate of Occupancy for Tenants.
If an architect is required, Beck-Reit will recommend 3.
If any additional inspections are required - engineers, general contractors, etc - Beck-Reit will recommend 3.
Renegotiation: if applicable
Phase III Section II - Renovation and Construction (If Required)
First order of business is to identify the scope of work. With an understanding of the work involved, we can:
Identify Professionals Required
Recommend Relevant Experts
Start the Vetting Process
The first professional to reach out to is an architect.
Your architect will put together a bid schedule for your general contractor selection process.
They’ll also put together a scope of work and cost estimate.
Once you’ve got a scope of work and cost estimate complete, it’s time to get with your lender and confirm your loan.
Once financing is secured, the next step is to vet and confirm your general contractor.
It’s important to pitch your project to several GC’s, at least two - though we recommend 3-5.
These GC’s will bid the project using your architect’s bid set and deliver a construction budget
Vetting your GC’s is extremely important. Some things to ask for include: lender letters to confirm strong financials, bonding and insurance policies in place, vender testimonials, client testimonials, etc.
Phase IV: Closing
Finalize any relevant amendments and execute.
Finalize and execute any lease/guarantee/service contract assignment docs
Form an entity to purchase the property - usually happens a week from closing, if applicable.
Bind coverage for property insurance - REQUIRED TO CLOSE
Transfer utilities accounts if applicable
Review closing statement for security deposits, pre-paid rent, pro-rated rent, pro-rated taxes, etc.
Get wiring instructions from title, send to bank and/or 1031 lawyer
Bring a valid ID to closing