All Forum Posts by: Zaid Badabwan
Zaid Badabwan has started 26 posts and replied 47 times.
Post: Commercial real estate inspection and repair
- Posts 47
- Votes 9
Originally posted by @Bob Langworthy:
@JD Gunter is right on. Everything is up for negotiation with commercial properties. And I would add that unless you have experience with commercial inspections, it would be worth finding a good commercial inspector. I grew up doing construction work for my dad, but will always get an inspection. Too many things that I don't know, too many changes to codes, too many area specific issues, etc.
Hope this helps,
Thank you Bob, I will make sure to get a good inspector.
Post: Commercial real estate inspection and repair
- Posts 47
- Votes 9
Originally posted by @JD Gunter:
Zaid - The best decision I ever made was moving into commercial real estate investments. Good job getting started doing your research.
The answer to your question is no, the seller is not necessarily obligated to fix anything. You can try to negotiate any repairs you want, but it will be on a case-by-case basis.
Even with residential, the seller is not necessarily responsible for fixing items found during the inspection. Every inspection finds something, and some inspections can be pretty nit-picky. If you ask the homeowner to fix a stain in the carpet that was found on the inspection, they can just say no and the buyer has the option of cancelling the contract under the inspection contingency, or waiving that item.
Commercial works much the same way. Assuming the contract is written with an inspection contingency, you conduct your due diligence and present an inspection objection on the items you are requesting. The seller has the option to fix those items or reduce the price and responds to the buyer with an inspection resolution. You have the option to accept the resolution, reject the resolution and cancel the contract, or attempt to renegotiate the resolution.
My recommendation would be to find a good commercial real estate broker in Tampa. Commercial real estate is a very different animal than residential and an experienced broker can really help, especially on your first commercial deal.
Thank you JD Gunter for the information and encouragement and advice which I will certainly follow.
Post: Commercial real estate inspection and repair
- Posts 47
- Votes 9
I am thinking of buying a commercial property for the first time in Tampa, FL. I found that most commercial properties that are for sale in my price range need a lot of repairs. I will do the inspection, but my question is: Is the seller responsible for doing the repairs that will be in the inspection report like the case with private housing properties.
I would appreciate answers and would appreciate details and suggestions.
Hello
I am new to flipping and would like to know if I should ask the county for a new appraisal after I finish renovations and before I sell the property. I understand that this will increase taxes on the buyer and they don't like it, but also some buyers will look at the old appraisal in the county page and will think that I am asking too much compared with the county assessment. However, the buyer will face the new assessment after purchase anyway.
Therefore, I would like to know if it is in my interest to call the county and ask for appraisal before posting the property for sale?
Post: Accounting software for a flipper?
- Posts 47
- Votes 9
Thank you for your great input.
I am new in property flipping with two other partners. I would like to know if we should have salaries for our work? or wait until profit is realized at the end of the year? Is paying salaries reduces profit and therefore reduces capital gain? or profit is taxed only once as profit and not taxed as capital gain? I Would appreciate if somebody explain this issue fully so I would know the best practice.
Post: Accounting software for a flipper?
- Posts 47
- Votes 9
What is the best accounting software for flipping business? Are there options for a software in your computer, not in the cloud? Or may be a flipper does not need an accounting software, then what is the best way to prepare for taxes?