How would you handle Phase 1 environmental on auction property?

[Jason J.]

If you were interested in bidding on an industrial property coming up for auction in approx 1 month, how would you handle an environmental inspection? Would you skip the inspection or pay for an inspection before bidding? There is no guarantee I would be the high bidder and an environmental could cost $2-3k. Is it still worth getting?

[Jay Hinrichs]

Quote from @Scott Mac:

Hi Jason,

Can you "Swing the Bat" for $2-3k--strikeout and come back to play further innings at another field?

Or will it bench you in the dug out for  a while.

One man's dollar is another mans penny.

You should probably make that call yourself.

Good Luck!

seems to me with that type of property even if it is an auction you should have some due diligence period. But if your required to put up a significant deposit to bid and you dont close for ANY reason and you lose your deposit.. then maybe you do the phase 1 ahead of time..  I know when I am looking at a project in an area I dont know well ( during my due diligence period) I will engage the appropriate consultants and I know its on me.. Many times this can be 5 to 10k and I dont close as things were discovered that made the project no bueno.. in this realm to me its the cost of doing business.

I did have an accepted offer last year on a building next to a gas station and the seller would not give me the time to do a phase 1 non refundable or not.. provided me with his that he had done 10 years earlier and well that was a pass..