The Commercial Property Investing Process Explained SImply

SteP 1: Engagement & Strategy Session

An initial discussion will outline your current situation (financially, educationally & emotionally), goals, and objectives. During this discussion, we will analyse your current team and determine if there are any missing links or sources of knowledge we can leverage from or upgrade. These can be in the form of brokers, accountants, financial advisors, solicitors, mentors, or buyer’s agents. We will then step you through our process, formulate a plan, and show you what can be achieved. Once we are clearly aligned and you have engaged our services the search begins!

STEP 3: NEGOTIATION AND OFFER

We submit a formal offer on your behalf and negotiations commence with the selling agent. Each state has its own individual process, and we will hold your hand every step of the way to ensure you are well informed and are fully aware what is required. Once negotiations are complete and offer is accepted, we proceed to contracts.

Step 4: Contracts

Once the offer on your investment property has been accepted it goes under contract. We can recommend the best legal team in the state we are purchasing to provide guidance in this important part of the journey. Generally, our offers are subject to a due diligence clause and an inspection clause. This gives you peace of mind that if anything untoward was uncovered during the next steps you are not in a jeopardised position and you can crash the deal and get your full deposit back.

STEP 5: Due Diligence

At Palise Property we have a dedicated team to complete this vitally important step of the acquisition process. This step is the one most investors don’t give enough time to or understand completely and where we truly shine above the rest! Once contracts have been signed the due diligence period commences. Depending on the complexity of the deal and availability of documents this period and process can take anywhere from a few days to a few weeks. In some specific instances, this due diligence process will be performed prior to going under contract.

STEP 6: Inspections, Valuations and Compliance

Following completion of Due Diligence, we recommend carrying out inspections. These can be carried out by one of our recommended building and pest inspectors. The benefit of carrying out this inspection post due diligence is that if something that is a deal-breaker is picked up then you haven’t paid unnecessarily for the building and pest inspection.

The inspection will have a multitude of photos, videos and reports detailing the condition of the property and any potential defects which may need rectifying either now or at some point in the future. It can also be used for further negotiation in terms of price.

In parallel to this, you will be arranging the finance and having valuations on the property. The contract will typically be subject to a finance clause as further security and protection for our clients. It is imperative that deadlines are met during this stage as delays can result in financial penalties or losing out on the deal and we will work with you and request extensions if required. Once everything is in place we move on to settlement!

STEP 7: PROPERTY ACQUISITION AND MANAGEMENT

This is the final step of the Acquisition process! Here we work with you towards settlement of your investment property. This is where all your property investment team members come together to complete the transaction. It is a very exciting and sometimes stressful time but be assured we will be there all the way until the end.

Prior to settlement taking place we will put you in touch with experienced property managers in the region who will take care of the day to day management of your investment.