Purchasing real estate successfully requires careful research and vetting to ensure your investment is the best you can make for future income.
Below are 3 red flags to look for before purchasing commercial real estate.
1. What condition is the surrounding property in? Even if the parcel you’re interested in buying seems to be exactly what you’re looking for, take a closer look at the “neighborhood.” Is it on the upswing or does it show signs of deterioration? Taking a hard look around and talking with residents and business owners in the area is a good way to determine if your investment will be a good one, or not. If the area is declining, it may be wise to look elsewhere. If you’re seeing improvements in a number of areas, it may mean your purchase could be a wise investment.
2. Does the property have issues you can resolve, structurally or legally? While it’s common for a buyer to expect renovations and/or repairs to commercial real estate, it’s important to determine if those repairs or renovations are within your budget. Also, check public records for any legal issues that may be attached to the property. Consulting experts beforehand so there are no surprises later on is imperative.
3.If major renovations have been done, are there permits to prove it? Make sure the seller can provide paperwork, including permits from government agencies. If there are no permits,especially for electrical, plumbing and structural work, the repairs may not be up to local code, and expensive problems could arise in the future. Carefully inspect your potential purchase with a keen eye so you can reasonably ensure a good return on your investment.
Inland Real Estate Brokerage, Inc. : 201 E Veterans Parkway, Yorkville, IL 60560 : 630.553.3600: http://inlandbrokers.com/