Buying first industrial (occupied) commercial property

[Roman Rytov]

I'm quite an experienced investor in the residential space (15+ SFR and duplexes) and going under contract with an industrial commercial space. My business rents itself and I'm quite familiar with the general terms and the contract. I know how to run the numbers and feel quite comfortable. What I'm trying to find is a check list to go through for inspection/assessment for a commercial property. I bet something like that exists already.

Your guidance is welcome.

thanks,

-Roman

[Marco Rodriguez]

@Roman Rytov I am an experienced investor and also an industrial real estate agent. I have a due diligence checklist I can email you if you like.

[Account Closed]

@Marco Rodriguez would you mind sharing your checklist with me as well?

[Cole Bigbee]

@Roman Rytov

Industrial buildings in the southeast is the only class I invest in.

Is it a pre-engineered metal building or block and bar joist type structure?

[Marco Rodriguez]

I have as a PDF and can't upload. DM your email and I'll send it

[Francis Louis Vogel Jr]

Roman,

The ensuing is a generic due diligence check list that my firm uses for the purchase of a commercial property.

Business Financial Supporting Documents:

Bank Statements for Proof and Source of Down Payment Funds

Business Profit & Loss 3 Years

Income & Expense Statement 3 Years

36 Months Detailed Business Bank Statements

Debt Schedule

Property Supporting Documents:

Purchase agreement

Schedule of tenant leases

Copies of tenant leases

Property Title

Schedule of Units with Square Foot Per Unit Excel Format

Schedule of all major improvements to be made with cost breakdown to subject property

Exterior Photos of Subject Property Photos of Parking Lot, Street view

Interior Photos of Subject Property

Subject Property Tax Documents with Amounts

Insurance Binder with Annual Costs

12 Months Utilities

Property Income & Expense Statement YTD 12 Months Trailing

Use of Proceeds in an Excel Format for Improvements to Property

Guarantor Supporting Documents:

4506 (T) executed

Tri merge credit report for all investors

Government issued photo ID copy – Front and Back

Full detail personal and business bank statements YTD for 36 Months YTD

Personal financial statement for all guarantors and investors YTD for 12 Months YTD

3 Years Federal and State Income Tax Returns for all Guarantors and Investors

Articles of Incorporation

Schedule of Real Estate Owned

Schedule of Corporations / Businesses Owned

Debt Schedule

Personal Financial Statement

Income & Expense Statement

Real Estate Owned

Businesses / Corporations Owned

Rent Roll

Schedule of Tenant Leases

Improvement to Subject Property

Business Debts to be Consolidated

Debt Schedule

[Roman Rytov]

@Francis, this is pretty deep and looks like a DD process from a bank. I believe a god chunk of it can be adopted for assessing tenant candidates when the time is to lease.