Commercial Property - What To Look For??
I am looking at a commercial property Monday that has 6 units and 4 occupied. What should I be looking for when I walk through the place? What is a good set of questions for me to ask the sellers about the property? Any and all advice is welcome 
Thanks in advance!!
Chris G
I usually look at the fine details, to see how well they kept up with maintenance. If they had a good maintenance plan then usually the building is in good shape. I always ask the year of the roof, building, and last appraisal. From those three you can tell pretty much everything about the condition. If possible get a copy of the last appraisal.
As far as questions go, its all in the financials. If possible get three years, if not expect them to be hiding something. Also make sure that you find out why he isnt fully rented and that you are positive that you rectify the problem, rather than duplicate his mistakes. There is a lot more to it, but thats where I usually start.
Good Luck,
Kyle
Thanks Kyle,
That will give me a good starting point!! My realtor has received a print out of the financials today(expenses,expected profit, ,etc.), and I will go over that as well.
Thank You,
Chris G
Chris,
Since you (and presumably the property) are in PA, make sure your agent gets the completed and signed Seller's Property Disclosure Statement on the property so you can review it. If you decide to buy the property, I would attach the Disclosure Statement to and incorporate it by reference in your purchase contract. This way, if you discover that something in the Disclosure Statement turns out not to be accurate, this may give you either some negotiating leverage or grounds to terminate the deal.
Thanks Nancy, I will ask my agent about that one.
Thanks for all the advice out there. Anyone else is more than welcome!!!
Thanks TCI!!
Chris G