The Church Real Estate Professionals • Since 1986

Start with ministry vision and financial capacity, not available properties. Before beginning a property search, your leadership team should understand:

• Why you need a facility
• What ministries the facility needs to support
• Where you believe God is calling you to serve
• Your current and projected attendance
• Your financial capacity
• How much debt the church can responsibly carry
• How much cash should remain available after the acquisition
• Your expected growth over the next several years

A property can be affordable and still be the wrong property. Define the goal before beginning the search.

Purchase price is only part of the equation. Your Financial capacity will be driven by cash on hand, amount of debt a lender will loan you, and your internal limits.

We recommend connecting with 3 lenders. Local Community Banks, Denominational Lenders, and Ministry Focused Lenders are the best place to start.

You will need at lease 3 years of financial history to share with lenders. You can download our Financial Documentation Needed for Loan Requests here.

Churches should consider the total cost of occupancy, including:

• Purchase price
• Down payment
• Debt service
• Property improvements
• Renovations
• Furniture, fixtures, and equipment
• Utilities
• Insurance
• Maintenance
• Deferred maintenance
• Future capital expenditures
• Staffing Requirements

Understanding your financial capacity before looking at properties allows you to search within realistic parameters and compare options more effectively

Buying land and Building is the most expensive option. Buying an existing building is usually the first or second step for a church.

Buying land and building can provide greater flexibility, but it may require more time, capital, infrastructure, approvals, and construction risk.

Buying an existing church, school, office, retail, industrial, or other facility may allow a church to occupy sooner, but the building may require renovation or compromise.

The right answer depends on your ministry needs, budget, timeline, location, and available properties.

Yes, and many churches do.
Churches frequently convert:

• Retail buildings
• Theaters
• Schools
• Car dealerships
• Industrial buildings
• Warehouse Buildings
• Office Buildings
• Event facilities
• Other assembly or commercial properties

However, a building being available does not mean it can legally or economically be converted into a church.

Zoning, parking, building codes, fire requirements, accessibility, utilities, traffic, and renovation costs should all be evaluated before purchasing.

Extremely important.

Before purchasing a property, the church should confirm that its intended use is permitted by the applicable municipality or governmental authority.

Do not assume that because another church is nearby, your proposed use will automatically be allowed.

If zoning changes, special-use permits, or other approvals are required, understand the process, timeline, cost, and risk before your due diligence period expires.

Parking requirements vary by city and property, but parking can be one of the biggest limitations on church facilities.

The church should evaluate both:

Required parking: What does the city require?

Functional parking: How many spaces does the church actually need to operate its ministries effectively?

Those numbers are not always the same.

Consider worship attendance, children’s ministry, weekday activities, schools, special events, multiple services, and future growth.

Due diligence is more than an option period. You have to “Do” Diligence.

Depending on the property, your team may need to evaluate:

• Title
• Survey
• Zoning and land use
• Environmental conditions
• Building condition
• Roof and structure
• HVAC systems
• Electrical and plumbing systems
• Fire protection
• Accessibility
• Parking
• Drainage
• Utilities
• Traffic and access
• Renovation costs
• Future expansion potential
• City approvals

Bring qualified experts to the table before the church’s contractual deadlines expire.

It depends on the property and transaction.

An existing building that already accommodates church use may move relatively quickly. A property requiring zoning changes, significant renovation, financing, or construction could take considerably longer.

Rather than building your strategy around an ideal closing date, develop a realistic timeline that accounts for due diligence, financing, approvals, construction, and transition.

Sometimes, but not always.
Churches may consider:

• Selling first and leasing temporarily
• Purchasing before selling
• Making a purchase contingent upon a sale
• Negotiating a leaseback after the sale
• Using bridge financing
• Coordinating simultaneous transactions

Each strategy has different financial and ministry risks. The goal is to develop a transition strategy before committing to either transaction.

Church leadership should establish a clear decision-making structure before beginning the process.

Depending on the transaction, the team may include:

• Pastor and executive leadership
• Elders, trustees, or board members
• Finance leadership
• Real estate professionals
• Lenders
• Attorneys
• Architects
• Engineers
• Contractors
• Inspectors
• Other specialists

It is also important to understand what approvals are required under the church’s bylaws or governing documents.