3. Consider the current condition: Before purchasing a building, make sure to inspect the mechanicals. There’s always the possibility that the physical and structural condition is weak, which could present additional upfront expenses and make maintaining the building more difficult.
4. Evaluate expenses: Look into the current operating expenses for the building. Everything from water and sewage bills to landscaping costs and property taxes should be considered before purchasing. If the operating expenses are too high, the building may not be a strong investment.
5. Focus on finances: Assess the financeability of the asset before moving forward and test the value against the market. In addition, complete pro-forma models for building and evaluate the anticipated results of the projected cash flows, net revenues and value add opportunity.
For more information, visit www.pangeare.com.
Continue Reading 1 2
Copyright© 2016 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.
Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com