An apartment building is a perfect property for starting a business as a Limited Liability Company. If you are trying to that or something else related to your business that requires an apartment building, then you should buy a building at an instance. Now, “how to buy an apartment building,” you may ask. The answer is simple: find one, get financed for the building, and close the deal.
Guide to Buy an Apartment Building
There are three steps that you can follow to buy an apartment building:
Step-1: Find the Right Apartment Building
You have to find the right building for you before buying. You should consider these points to get the best building for you:
Get a Real Estate Agent
Well, you can do your own research and find a building for yourself. But, it will take forever and cost you a good amount. So, you should hire the right real estate agent who will find the best building for you and save both your money and time. Besides, this is their job, so it would be easy for them to find the best suitable property for you in a short time.
Determine What Kind of Building You Need
Many kinds of apartment buildings are available. For example, there can be a mixed building of apartments and commercial buildings. Likewise, there are different types of buildings available. Now, you have to choose what kind of building you want to buy.
Step-2: Finding Financing
All set finding the right apartment building; now you have to worry about the financing option:
Review the Credit History of yours
A creditor will appeal out the credit history of yours to find out; you are a good credit risk? That’s why you have to analyze the credit history of yours before asking for a loan. Now, you make a report from every credit reporting agency every year. You only have to call “1-877-322-8228” or visit “www.annualcreditreport.com.”
Collect All Required Documents
You need to do some paperwork to the lender at the time you request a loan. However, you will need to submit these documents:
- Description of the property (must include the year of creation and number of the units).
- The map shows the property’s location.
- Pictures of the property.
- Upgrade plans.
- Floor plan copies.
- Information on rents.
- Closing costs and buying price.
- Names of those who are involved in the deal.
Step-3: Closing the Sale
In this step, you have to close the sale. I mean, the deal is going to end in this step.
Get a Lawyer
You must not do legal stuff all by yourself. That is because you are not fully aware of all the laws unless you are a lawyer. So, to avoid problems, you must hire a real estate lawyer.
Create a Business
Most of the landlords hold their apartment buildings with their business. You can do that too. It could be an LLC or, should I say, a limited liability company. If you have an LLC, you can shield yourself from all the liabilities associated with the apartment building personally.
These steps would be enough that will help you to buy an apartment building. But, I must warn you about the cons of an apartment building. These are hard to sell, have a high maintenance cost, and hard to manage as well.