Investing in Commercial Real Estate

5 types of commercial estate properties:

  • 1

    Industrial

  • 2

    Land

  • 3

    Multi-Family

  • 4

    Office

  • 5

    Retail

Due Diligence Checklist

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Building Plans

Development costs

Easements & Restrictions

Environmental

Financing

Improvements

Maps – Topographical, soil, ingress/egress

Ownership structure – S. Corp, LLC)

Planning & Zoning

Public Facilities

Survey

Traffic

Title

Utilities

Investor Considerations you should know

Considerations for

Property Management

Capital Improvements
Collecting rents
Landlord-Tenant Law
Lease agreements
Leasing
Repairs
Routine Maintenance
Tenant Improvements

Considerations for

Purchase Agreements

Assignment of lease
Due Diligence
Environmental
Estoppel certificates
Use

Considerations for

Lease Agreements

Acquisitions & Mergers
Assignments & Subletting
Commencement & Expiration
Common area maintenance (CAM) costs
Common areas
Deed restrictions
Default
Insurance & TaxesLand lease
Legal notices
Net vs. Gross lease
Tenant Improvements
Term
Use

10 Key Questions Commercial Real Estate Investors Should Ask

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  • 1

    Are your “model” (pro forma) assumptions accurate?

  • 2

    How much of your own money are you investing?

  • 3

    What is your competitive advantage in the market?

  • 4

    How do you ensure that your capital is protected in a down market?

  • 5

    How can the deal lose money?

  • 6

    What was your worst deal and what did you learn?

  • 7

    What was your best deal and what did you learn?

  • 8

    How is your company funded?

  • 9

    How is your team incentivized?

  • 10

    What is included in all the agent's fees?

Articles for Commercial Investors

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Investing in Commercial real estate can be complicated. Let's talk.