Purchasing an investment property can help create a secure financial future, but you need to do your due diligence first. Just like any other large purchase, you want to make sure you are making a wise choice that fits into your lifestyle, before taking the leap. Here are areas of due diligence, from the experts at Ullian Realty, so you don’t have buyer’s remorse!
Due Diligence: Building
- Are there any issues with the foundation, walls, roof, electrical, plumbing, doors or repairs that will require a major investment to bring up to code?
- Are there cosmetic improvements needed to modify the building for your planned uses?
- Is there ample parking and shipping receiving?
- How many tenants can it accommodate?
- Environmental report
Due Diligence: Building Surroundings
- Is there open land surrounding the building that could accommodate future development?
- What other businesses are close to the potential investment?
- Would you share a parking lot with other businesses?
Due Diligence: Legal
- What are the local zoning ordinances?
- Would certain laws need to change in order bring your business plan to reality?
- Are there any litigation claims against the building?
- Are there currently multiple owners or a sole owner?
Due Diligence: Financials
- What is the appraised value of the property?
- Is the price of the investment property within your budget, or would you need outside investors?
- What are the average monthly utility expenses?
- Is the building set-up for WiFi and cable to offer cutting edge technology to businesses interested in renting?
- What are the most recent tax bills?
- Are there any tax credits available to cover the cost of making the building more energy efficient?
There are certainly other questions to ask, and research to complete, in order to do your due diligence when contemplating your next commercial investment property. Ask your commercial broker for guidance, and talk to other investors who have purchased similar properties.
At Ullian Realty our team has developed a thorough process to ensure you do your due diligence with every property you consider. With over 50 years of combined professional experience, our team is available to help you find the right investment property in Brevard County, FL. Contact us today to schedule an appointment.