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Updated over 6 years ago on . Most recent reply

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Marcus Auerbach
#2 General Real Estate Investing Contributor
  • Investor
  • Milwaukee - Mequon, WI
7,375
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5,097
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Commercial inspection advice, phase one ESA and appraisals

Marcus Auerbach
#2 General Real Estate Investing Contributor
  • Investor
  • Milwaukee - Mequon, WI
Posted

I am representing a client in the purchase of a commercial building downtown. About 8000 sf between first and second floor, plus basement, concrete structure with brick walls with a flat roof. Two elevator shafts, equipment out of order. Electrical updated, commercial 220V, retired steam heat, newer forced air HVAC. I have been inside several times, we have also looked at it with a commercial contractor. Seems pretty staright foraward to me, but I want to make sure I am giving solid advice to my Buyer.

One lender was suggesting they have their own inspectors on a list (like bank approved appraisers), the other one told us no, just regular inspection. How does inspection ususally work? My residential guys are great, but they don't evaluate concrete structures on a daily basis. Where do I find a commercial inspector, how many days should I allow in the OTP? (I am working with the commercial state approved form WB-15).

If an evaluation by a structural engineer is necessary, I would assume the inspector would recommend so in writing. The building seems fine to (I have a piece of paper at home that says I am an engineer), but I want to make sure we cover our bases.

Another discussion we are having is that the Seller will allow any inspection, but is not willing to pay for a phase one, which seems to be required by sssome lenders. 

Isn't that typical for a Seller to proivide an appraisal and a phase one?

Would be great to get some re-assurance from an experienced commercial agent! Thanks guys.

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