For many people, investing in commercial real estate seems like a good way to make money. While this is often the case, there are also risks that come with any investment — which is why potential investors need to do their due diligence before they commit.
If you’re new to the real estate game, it can be very difficult to know where to start.
What does due diligence entail?
There are several things that you should consider when you’re trying to determine whether a commercial property is a good investment. You’ll have to start with knowing the current demographics and trends for the area.
You also need to understand exactly what you’re getting for your money. That includes any issues with the land, the building and zoning restrictions. After all, you don’t want to invest in a property that needs environmental rehabilitation or one that can’t be used for your intended purposes. You also need to make sure that the title is free of any encumbrances, like liens.
How can an attorney help you?
Your attorney can review all the documentation related to the transaction. This may help you to unearth issues with the title or the contract. This may help to save you issues in the future. They can also make sure that your rights are being upheld, and they will attend the closing on the property with you.
An attorney who’s familiar with commercial real estate transactions can help to protect you. They can review documentation and various aspects of the transaction to ensure that there’s nothing hidden. This can provide you with the information you need to make an informed decision on every investment.