Commercial Property Buyer Tips

Commercial Property Buyer Tips

A commercial purchase is mainly a numbers game. Before
investing in a large building, get, find and uncover all of the
information that exists on the property. From the seller you
should receive reports that include NOI, GSR, expenses, rent
rolls, delinquency, unit count/mix, market trends, vacancy and
time on market, marketing plans and comp surveys. You
should also request information regarding the physical
structure to include maintenance logs, contracts, warranties
and current condition report. Inspect the unit interiors,
basements, rooftops, HVAC systems, trash rooms, elevator
performance, parking structures, everything from soup to nuts.
It may be beneficial to take a property manager and/or
building engineer with you depending on the size and age of
the property. Another idea is to ask a property manager to
“shop” the building before your inspection, to evaluate the day
to day operations.

I’ve personally been involved in investment property
acquisitions; I have inspected and been inspected. Please feel
free to contact me with any questions or concerns that you
may have.

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