Phase 1 ESA for Commercial Property? Help
First off my name is Mike and I am new to the BP forums, but have been a long time Podcast listener. Tons of great information on here!
I am working on my first deal and it is a commercial property. It cash flows well and has a great cash on cash return. Currently has a tenant that is willing to sign a 3 year lease with me upon purchasing the property. I have a signed P&S and have been working with a lender and everything has been moving along smoothly up until this point. I am purchasing a commercial condo unit which is a double unit in a 10 unit building. The bank wants to do a Phase 1 ESA and is asking my to pay for the $2900 to perform it up front. I have done as much research as possible talking to the seller, other condo owners, association president etc. but have not been able to get much information as far as what to expect. I am fairly confident based on my research of the property that it should not have any major issues as most of the businesses in the condo have been storage or office type use. I have also ready many stories on the forums here where the lender Phase 1 is non conclusive and the lender pushes for a Phase 2 which ends up costing much more and opening a can of worms? Any advice is appreciated! I really don't want to spend $2900 just to be told I need to do a Phase 2.