What is a good % of purchase price or a $ amount that you should have around when closing on a property?
What’s a good way to figure out all closing costs and what’s a good amount to have in the bank for initial cash flow? Enough for 2-3 months of bills?
[{"id": "fne91i2", "text": "This is a loaded question depending on the asset type/class so it really depends on what specific kind of commercial asset we\u2019re talking about. Generally 1% of the purchase price can be assumed for closing costs outside of commissions. On multi tenant retail, we typically see banks underwriting at least $0.20 per square foot for reserves. Could be more if there\u2019s deferred maintenance. Obviously in this environment with businesses shut down, standards will need to be adjusted. Any particular specifics you have on a deal you\u2019re looking at?", "replies": [], "depth": 1}, {"id": "fne9ouq", "text": "Please re-post this question with more details (property type, occupancy, market, etc)", "replies": [], "depth": 1}]