Purchasing a nonresidential property is not a decision to take lightly. Rather, it requires advanced planning and preparation to yield the best results. Here are a few tips for purchasing properties featuring commercial leases in Los Angeles.
First, investors would be wise to pinpoint the particular real estate sector in which they are interested in buying. For instance, they could choose from mixed-use, office, retail, multifamily or industrial properties. Next, it is critical that investors assess the requirements surrounding their chosen sectors. For example, if an investor purchases industrial property, he or she must understand what needs to be done to alleviate environmental liability.
In addition, it is a wise move for investors to engage structural engineers. These engineers can help with ensuring that chosen structures and buildings are safe to use and will last a long time. They can do this by reviewing an asset’s structural integrity, an asset inspection report and surveys.
Furthermore, investors must be prepared to comply with local ordinances regarding permits when purchasing and potentially fixing up commercial real estate properties. It would also behoove them to get title searches done with the help of an attorney. A title search provides information on whether there are title defects, which is critical for ensuring that a marketable and clear title ends up transferring to the investor at closing.
Buying buildings featuring commercial leases can be complicated. Fortunately, once an investor decides on an appropriate real estate sector, an attorney can provide guidance on the kind of due diligence that the investor must perform and walk him or her through this process. The attorney’s ultimate goal is to make sure that the client’s best interests are protected during each phase of the transaction in Los Angeles.