A Wise Investment Predicts Sound Returns
Before you invest valuable capital, time, and resources into a commercial property, conduct a thorough inspection to verify the condition, viability, and safety for your business. Your inspector can provide insight into ongoing operational and maintenance costs, as well.
There’s no sense in going blind into an investment of any kind. A commercial property investment involves management and maintenance. A professional, unbiased inspection will give you a sound basis for investing in the property.
A Small Investment for Big Returns
An inspection reports on the current condition of your proposed investment property. Performed by an unbiased professional, the inspection examines various components of the property and assesses the current risks.
Although a property may seem appealing at first look, a pre-purchase inspection covers structural and safety aspects that impact your decision to purchase now and the long-term value of your investment.
The basic inspection covers:
- Site characteristics: Not part of the structure, but features of the property that imply value. These include: parking lot, pavement and walkways, landscaping, utilities, and other site characteristics.
- Structural frame and building: The material and construction of the building including the age and current condition.
- Roof: Materials, age, and condition of the roof. The report may also include a projected longevity estimate.
- Mechanical and electrical systems: Covers code standards for insulation and capacity. The inspection may cover increased load bearing to accommodate future upgrades. Fires from overloaded electrical system are a common cause of fire.
- Plumbing: Water mains, flow, and sprinkler systems. Drainage and sewer connections.
- Heating, Air Conditioning, and Ventilation: Ducts, vents, thermostats, plus heating source.
- Vertical transportation: Elevators, escalators, and other devices to transport people and goods.
- Interior: Walls, flooring, kitchen, restrooms, and alarm systems for structure and safety.
The report generated after the inspection includes recommendations and degrees of urgency for needed improvements. In addition, the inspector may provide an opinion on the suitability of the property for your investment goals.
You can discuss projections for guideline costs to operate the property going forward with the inspector. Plus, his recommendations for upgrades and improvements.
When you know the current status of the property and the projections for necessary upgrades and improvements, you’ll have a better idea of the true cost of purchasing the property. In addition, you’ll have a better understanding of ongoing maintenance costs.
Is the property worth any additional costs associated with needed improvements? Does it make sense to buy now for long-term value? Will necessary repairs or improvements, put you in the red?
The inspection will give you a clear understanding of the property’s current condition and value to determine whether your investment makes sense.
Know Now for a Better Long-term Perspective
Owning commercial property is like owning a car and letting someone else drive it. You’ll need to calculate the expenses incurred by occupants, ongoing maintenance, and future upgrades and improvements.
Commercial property is not static like a precious metal. Every unplanned occupant event and maintenance costs impact your return on the original investment. You can’t control what occupant actions impinge on your bottom line. Starting out with a structurally sound property minimizes future costs.
A professional inspection will help you avoid a poor investment. The property may have hidden conditions that will impact current and future costs. An objective inspection will keep you from pouring your money into a cash-eating property.
A Property Inspection Makes Good Buying Sense
Before you run projections on income and expenses for a property, know it’s current value. A comprehensive property inspection alerts you to any current issues and potential pitfalls intrinsic to the property.
Good facts are the basis of sound decisions. An objective commercial property inspection is the first step to gathering information to make a wise investment. Findings at the inspection can save you thousands of dollars from hidden hazards and impending problematic conditions.
Your inspector is a seasoned professional. Don’t overlook his expertise when evaluating the findings in the inspection report. The written report is a dated legal document with unbiased findings. Your inspector adds another dimension by offering opinions, suggesting a ways to remediate issues, and offering professional referrals for needed work.
Use Inspect.com to find a qualified, professional commercial property inspector to supply the information to help you make a wise buying decision.