Purchasing First Commercial Property - Due Diligence Inspections?
I'm getting ready to purchase my first commercial property with seller financing. It's a commercial garage around 7K sq. ft. which was built in the late 1960's and will be used as a location for my car wash business. It also has a separate retail location attached to it, that we're looking to lease out.
As we go through due diligence what types of inspections should I look to have done? I currently have two duplexes in my portfolio so I'm aware of the inspections in that situation, but not sure what additional inspections I should have done. Or are there other things I should look out for?
Thanks in advance for useful feedback.
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You might find an engineering firm or property inspection firm that does commercial. Just make sure they do commercial ( and have experience with your specific type of asset). We do mobile home parks so we typically are not looking for one person to do a general inspection but we hire a plumber to come out check water/sewer/gas lines for a professional opinion , same with electric , or if there is roads that look kind of questionable, we will ask a paving /concrete contractor to look at it. This way all specific systems that could cost big $$$ are getting evaluated by the people who know them ( and the plus side is we are getting prices to fix items if needed). If its something unplanned or higher than expected, we can also use it as a negation tool. If bank financing is involved, make sure if the lender is satisfied with your choice of inspection company/method (if they deem a report necessary).