I have read quite a few blogs & posts on Commercial property purchasing but I was wondering if anyone had a handy Due Diligence check list?
I had included the Structural Assessment & Environmental Assessment. What other checks should we be conducting?
Is there anything else we should check out?
Our business will be the tenant so that side is secure.
It is an inner metropolitan suburb, on a main arterial road. Easy access in all directions.
Are there are any major “Gotcha’s” we should be wary of.
I have checked out the financials …
The property is looking like ROI = 7.1% . CoC = 11%
Much appreciate your input.
PeterSteve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763
Thanks for your question. Yes, there are heaps, and heaps, and heaps of questions to ask, and matters to address in due diligence… if you want to make an informed purchase that considers risks and rewards.
This has been the focus of the recent study groups I have been running (Inner Circle 1 and Inner Circle 2), where I showcased the DD I did for two commercial property deals, the questions I asked (with checklists), and the outcome.
If you’d like access to recordings of those programs, as well as joining up my next study group, read more here: http://www.PropertyInvesting.com/IC3
All the best,
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
Success comes from doing things differently
Many thanks Steve.
I did register for IC1, but only managed to attend a couple of sessions. Work getting in the way of life :-)
I will review the details I have and plan to register for IC3 as I am sure it will be excellent value again.
Thanks Steve for reminding me!
PeteandrewhiteParticipant@andrewhiteJoin Date: 2021Post Count: 0
Generally, there are several areas of due diligence that are addressed on a due diligence checklist, such as corporate structure & general matters, taxes, strategic fit, intellectual property, material assets, and other areas.andrewhiteParticipant@andrewhiteJoin Date: 2021Post Count: 0
The main reason you need a due diligence checklist is to make sure you don’t overlook anything when acquiring a business. Having a due diligence checklist allows you to see what obligations, liabilities, problematic contracts, intellectual property issues, and litigation risks you’re assuming. Most of the documents and information on your due diligence checklist are available on request. Once you have the information, it’s up to you to analyze it and decide whether it’s a good investment.vaxyParticipant@vaxyJoin Date: 2021Post Count: 0
Excellent financial performance! Have you found any lawyers yet? Now they are necessary for every businessman!vaxyParticipant@vaxyJoin Date: 2021Post Count: 0
You have excellent financial indicators! When I started investing in real estate, I did not see such large percentages! By the way, I advise you to find people who are connected with the law, namely lawyers. I’m telling you as an experienced person! I recommend you to find lawyers because they can save your money from unnecessary taxes. You will also know more information before you start investing money in any industry. Do not forget about taxes, now laws are being passed, in my opinion, against businessmen, since there are a lot of them now and the state wants to make more money from them! Well, good luck to you!