I'm wanting to understand from commercial property owners & investors. Are you familiar with Property Condition Assessments i.e. building inspection of all major systems of the property? What is most helpful in these reports from an ownership point of view?
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
Well, upon purchase, I'd get one. I've told owners how I'd use them is to set up a schedule of repairs, so you can budget accordingly.
Example if the water heaters are avg 10 years old, better plan in the next 5-10 that all will be replaced. If roof has 5 economic years left (usually you want a 5 year cert) then budget for that. You don't want surprises.
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
Well, upon purchase, I'd get one. I've told owners how I'd use them is to set up a schedule of repairs, so you can budget accordingly.
Example if the water heaters are avg 10 years old, better plan in the next 5-10 that all will be replaced. If roof has 5 economic years left (usually you want a 5 year cert) then budget for that. You don't want surprises.
@Steve Morris thank you for the response! My company currently provides these reports and we provide repair/replacement cost estimates. The interesting thing I've seen is that it's not very consistent, some buyers are doing this during their study period and but many seem to not be interested. I'm hoping to learn how to bring more value to these reports so more people will use the service.
@Steve Morris thank you for the response! My company currently provides these reports and we provide repair/replacement cost estimates. The interesting thing I've seen is that it's not very consistent, some buyers are doing this during their study period and but many seem to not be interested. I'm hoping to learn how to bring more value to these reports so more people will use the service.
Well, I think you're doing the right thing since a lot of owners buy with stars in their eyes and don't think about budgeting for major repairs in the immediate future. Stuff like moisture invasion does NOT get cheaper by waiting to fix it.
What you're going to fight is a buyer thinking you're trying to sell services and over-emphasizing some problems - It's not you, just buyers.
Only thing I'd say from looking at similar things is if it's a 1-page report and 10 pages of ads, that doesn't go over well.
Rental Property Investor · Marlton, NJ · Member since 2017 · 3 posts · 1 vote
5y
@Rashida Akhter I’m looking into investing in single tenant triple net leases. Most importantly currently looking into learning more about underwriting and financing. You?