jamscal
Stainless
- Joined
- Sep 8, 2004
- Location
- Louisville, KY
Around November 2020 I was doing my weekly review of the local industrial real estate listings and I found the perfect shop (TBD of course).
I made an appointment to see it and made an offer a week later. My wife, more frugal than myself, agreed it was the shop for me. Offer was contingent on financing and I had a 45 day due diligence period.
I used the SBA 504 Loan program. That process wasn't bad. The SBA is very busy right now, so there were delays that pushed me past my due diligence period. My deposit was sort of flapping in the wind at several points.
The real problem was the environmental reports. The seller had a Limited Phase II which wasn't good enough for the SBA. They needed a Phase I.
The Phase I, which took weeks, indicated a need for another Phase II. I say that was BS and a money grab, but it was perversely funny I had to pay a bunch of money to save my other money and also have a chance the whole deal would fall through.
All this took a bunch of time and worry. Finally Monday I closed on the building.
I made an appointment to see it and made an offer a week later. My wife, more frugal than myself, agreed it was the shop for me. Offer was contingent on financing and I had a 45 day due diligence period.
I used the SBA 504 Loan program. That process wasn't bad. The SBA is very busy right now, so there were delays that pushed me past my due diligence period. My deposit was sort of flapping in the wind at several points.
The real problem was the environmental reports. The seller had a Limited Phase II which wasn't good enough for the SBA. They needed a Phase I.
The Phase I, which took weeks, indicated a need for another Phase II. I say that was BS and a money grab, but it was perversely funny I had to pay a bunch of money to save my other money and also have a chance the whole deal would fall through.
All this took a bunch of time and worry. Finally Monday I closed on the building.