Commercial Real Estate Investing – Top 5 Due Diligence Items
Commercial real estate investing is full of opportunity but as with all opportunity comes risk. One question I am often asked, especially by new investors is, “Other than the market risks, what are the other potential risks in buying commercial real estate?” Most of these are first time investors or 1031 exchange buyers coming out of family land or other family assets. I thought that it might be helpful to create a list of the top 5 due diligence items need to be addressed to detour some easily avoidably but potentially costly pitfalls.
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Confirm the Square Footage -
The majority of investors rely on the square footages included in the tenant’s leases assuming that the tenants did their due diligence. However, that is not often the case. It is important to either do a quick measurement yourself or hire an architect or an engineer to verify. You want to make sure that you’re getting what you’re buying.
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