Before buying a piece of commercial property for sale, it is important to thoroughly investigate the premises for problems before finalizing the purchase. This type of inspection is known as due diligence and typically involves the use of an inspection checklist. Some of the most important factors to consider when purchasing commercial real estate include environmental safety hazards, the physical condition of the premises, location, code compliance, and title issues.Environmental Safety HazardsOrder an environmental assessment of the commercial property you are interested in. The environmental assessment will provide details of the environmental condition around the premises and the history of the environmental factors, including the presence of hazardous materials such as lead paint, asbestos, and radon. In addition, hire a property inspection firm to check the premises for the presence of mold. The inspection should assess water and earth samples. If traces of lead or asbestos are found, hire a consultant to determine the cost and practicality of removing the hazardous materials. Consider the cost of repairing the real estate before deciding to close the sale.LocationThe environmental assessment should help you find out if parts of the real estate are located in a shoreline, wetland, fault line, flood zone, or a home for endangered species. Hire a consultant to help you determine water, oil, gas, mineral, and timber rights for the real estate. Find out if the commercial property for sale has any FAA building restrictions such as height restrictions or noise restrictions. In addition, find out if you will be required to obtain environmental operating permits for the building. As a buyer, consider obtaining copies of all existing permits and contact relevant agencies to determine if there are any past violations and issues to ensure you will not experience any problems transferring the permits in the future.Physical ConditionHire a licensed engineer or building inspector to check the interior and exterior structural integrity of the building. The inspector should also check if the building is handicap accessible and has proper drainage features. Obtain copies of all ongoing construction and design contracts to find out if building contractors received their full payments and if you will be required to obtain lien waivers.Other important factors to research include available parking around the building, proximity to public transportation, and the amount of electricity received by the building. Find out if the building is accessible from public streets. If not, contact the relevant departments to find out if improvements to the access road can be made and how much they would cost.Before closing on a commercial property for sale, find out if the building complies with relevant safety, building, and zoning codes by contacting appropriate regulatory organizations. Local building and planning departments should provide the information you need regarding building code compliance or violations. Because building codes change with time, find out if the property violates new codes and whether planned changes or improvements will violate codes.
If you want to invest in commercial property you must be able to categorize the type of property that you prefer. It is not because you have different tastes when it comes to your assets but the reason is based on the type of investment that you shall have right after the purchase.Many people have been planning to accumulate as many properties as possible once they are given the chance to handle a huge amount of money. If you will listen to those people on the line to a lottery ticket outlet you will hear their plans as to what they are going to do if they shall hit the jackpot. Most people will say they will invest in commercial property,. Some would desire to have a business of heir own. You will never lose all the wonderful ideas on how a big sum of money can be managed right after.In general it is people’s tendency to desire for an additional source of wealth as long as he or she is alive. Exclude those people who have devoted their lives to charity and selflessness. Just think of your officemate who had been planning of buying an apartment in the city once she gets her retirement. For her, it will be a great reward for her hardship for many years as an office secretary. Who doesn’t want to own a retail space where you can rent to small entrepreneurs in your area? The income is one hundred percent sure since there are many people who are engaged in business of goods and services and need a space for them to operate.Now after considering the basis of your desire to have a commercial space of your own here is the question. Do you know what to do in order to have a stable investment? If you have no idea on the things that you have to bear in mind when planning to invest in this type of business, read the following tips that will help you thrive in your new endeavor.Be sure to get equity.Once you picked to if you choose the correct finance company for your commercial property you will have the chance to succeed in your business. Once you own the building you don’t have to spend on the rent anymore and you can even increase your income by leasing the place. Once the income becomes stable you can even expand your commercial property business and have a serious industry out of this small investment.
Sit down and compute your wealth.Ask your loaning agency to furnish you with you with the breakdown of the recent trend in the economy in your area. Learn to ask questions. Once you have the simple knowledge of the prices in the business sector you will know what is lying ahead of you once you engage in the commercial property business.Invest in commercial property business with a smile armed with this knowledge.