Investing in property is a great way to use the profits from your business. You could use those profits to buy any asset but since we’re lawyers we know property best. So today we’re going to talk about four different topics. We’re going to talk about the process of investing in property. Some of the rules are similar in different places. But again, the concepts are the same.
Find the property
The first thing you need to do is finding the particular property that you want to buy. Your strategy will determine what sort of property it is as you want. Research is a must here. It’s also a good idea to talk to a number of different real estate agents. Once you found the property you want we encourage everyone actually inspect the property. That means a visual inspection!
Once you find the property your want you should appoint a lawyer to handle transaction. The lawyer will negotiate or to make sure you get the terms you want. Make sure that you’re getting what you pay for and there’s no skeletons in the closet. The next step after that is the actual transfer and transaction documents.
What kind of property?
There are five different types of property. There’s residential property, industrial property, commercial property, rural property and there’s retail shop property.
Signing the contract
Before you sign the contract remember that it’s a binding document. You need to look at a few things. One of those is what entity is actually entering into the agreement. Is it your company or you as an individual? That’s an important distinction. You need to get that right to avoid future problems down the road.
Due diligence is one of those funny terms that doesn’t really have a legal meaning. So what does that mean? Well, it really means you’re looking at every aspect of the property. Every aspect of every contract. Every lease and every contract related to that property. Basically it means making sure that you’re happy with it as a buyer.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.