What Should I ASK before investing in a commercial property

3/8/2021 (Permalink)

What is a commercial property? 

• Retail buildings
• Office buildings
• Hotel / Motel buildings
• Industrial buildings
• Apartment buildings
• “Mixed use” buildings, where the property may have a mix, such as retail, office and apartments.

Before investing in a Commercial Property the best thing to do your research

Common questions to ask

1. Year built? Older buildings might be a great deal upfront, but they can have issues and require more investment down the road.
2. What kind of property are you looking for?
3. Are you looking to use the building for your own business, rent it out, build equity, and/or something else entirely?
4. What kind of location do you need?
5. Do you need to buy or could you lease the property?
6. What's your situation regarding cash, financing, and/or ability to make a down payment?
7. What's your risk tolerance?
8. How much time can you commit to the property?
9. How much work are you willing to put into the property?
10. What skills/knowledge are you bringing to the table?
11. What skills/knowledge will you need to hire experts for or contract out?
12. What kind of property manager might you need (or not)?
13. Are you willing to do the duties of being a landlord?
14. Finally, are you ready/willing to make an investment/purchase of this size?