The Wild World of Real Estate: Evaluating Your Property and Getting a Loan

The Omaha Bugle-Global News Network

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In yet another thought-provoking discussion about the do's and don't of investing in commercial real estate, Adam and Jeff talk about how a buyer who has put a property under contract may not wish to trust the seller's assurances that the property is "fabulous!" but instead bring in some professionals to evaluate the property. There are a number of companies that will help prospective buyers figure out whether the property is "fabulous!" or has one or more problems such as an unmarketable title or a stew of hazardous wastes on it that render it worthless even though it glows with many colors at night. Jeff points out that a buyer will want to have an inspection company look at the property and the building to see if there are any subtle concerns such as a missing roof or a floor that has disappeared into a sinkhole. A surveyor will determine if anything is encroaching on the boundaries of the property or, indeed, if the property has actual boundaries. Hazardous waste inspections will looks for signs that the seller may have dumped some volatile chemicals in the back to save on his waste disposal fees. Finally, the title company will comb the public records and determine if the property has been adversely impacted by prior owners in such a way that it cannot be used for the purposes intended by the buyer. Assuming that everything goes well with the inspections, then the purchaser can approach the bank and beg for enough money to help close the deal. Adam points out that banks are always happy to lend a helping hand except when you actually need a helping hand.