Buying commercial real estate for investment or business purposes is a great move, and if done correctly can bring you wealth and success. But unfortunately, the buying process can be full of complications. There are so many details that if overlooked can leave you with a property that’s more of a mistake than a profit. To make sure that doesn’t happen and for a fast and effective purchasing process, it’s important to understand due diligence and the role it plays in a successful commercial real estate purchase.
Read on for how due diligence can make all your business or investment property purchases as risk-free as possible.
Commercial Real Estate Due Diligence
Once you buy a property you can’t just give it back, for the most part, you’re stuck with your new purchase even if it’s not what you were expecting. To ensure that you get exactly what you expect from a property purchase, an extensive review of the property is essential. In real estate, this review process is called due diligence and it can get complicated.
While the due diligence checklist for a commercial real estate property is usually extensive, the amount of time allowed for this process, called the due diligence period, is pretty limited.
The Due Diligence Period
The due diligence period begins after you’ve decided to purchase a property, negotiated a price, and often after you’ve signed a contract. Whether you’re looking for commercial real estate in Denver or nationwide, the due diligence period varies, but it usually only lasts around 30 to 60 days.
This short period of time is your opportunity to inspect every single possible issue with a property and have it taken care of. Once this period is over, any issues with a property become your responsibility, so a thorough due diligence checklist is so important.
Commercial Real Estate Due Diligence Checklist
Due diligence is a complex process, and it’s extremely varied. Each type of commercial real estate property has unique aspects that are vital to consider. A due diligence checklist can include zoning certificates, real estate tax bills, environmental assessments, building inspections, title information, future cost impacts, legal limitations on a property, and much more.
Reduce Your Property Purchasing Risk
With an extensive checklist that needs to be covered and a short due diligence period to work with, it’s important to have a team of experienced professionals on your side to ensure you get the exact property you want.
Contact a Commercial Real Estate Expert Today
CenterPoint Integrated Solutions equips you with a team of experts in commercial real estate in Denver and nationwide so that your property purchase is always as risk-free as possible. Contact CenterPoint Integrated Solutions today or give us a call at (303) 670-4111 and let us help you get a commercial real estate property that’s exactly what you want.