With any purchase involving commercial real estate, it is essential to do proper Due Diligence. In this process which is usually set in a Commercial Purchase Agreement before the earnest money deposit goes non-refundable, a property’s physical condition, financial health, and legal background are all thoroughly investigated.
To make sure you’re investing wisely and avoiding future hazards, you need to thoroughly examine the physical property, all existing reports, leases, financials, maintenance agreements, association documents, and other materials to determine if there are any issues or potentially inflated long-term costs.
For instance, if you find out during the due diligence process that a property has serious structural or environmental problems, you might decide to back out of the sale rather than take the chance of having to make an expensive repair or remediation later.
Working with a seasoned commercial real estate agent and experienced property inspector is crucial if you’re a prospective buyer since they can help you with the due diligence process and make sure you’re making a fully informed decision.
If you would like further information on this process, please give Stark Accelerators Commercial Real Estate a call at 775-825-4400.