All Forum Posts by: Patrick Jones

Good Afternoon BiggerPockets Experts!

I wanted to learn from you re the specific role a real estate attorney will having in the acquisition of a commercial building (50k-60k sq/ft).

I have a wonderful real estate attorney that I have used in the past, but he charges $450/hr. I would like to understand what you feel his specific role would be in the transaction and when/where I would include him. I feel that if I contact him and ask him to look into a property I am in the discovery phase on, that he may spend all sorts of time looking into things that may not be necessary for him to look into. I just don't want an expensive hourly attorney making a living off of me. 

Thoughts?  

Hello BiggerPockets Experts!

I am a first-time poster on this forum and am new to real estate investing (one SFH being rented for about 4 years). Long-time listener of BP podcasts.

My dental practice is located in a commercial building that is 50,000-60,000 sq/ft and I may have the opportunity to purchase the building. I am wanting to expand my business in the building, so the building has additional use and value to me. 

Brief building background: a) previous owners approached me about 4 years ago and offered to sell me the building. I declined since my financial/life experience were not ready at that time, b) A university purchased the building about 2 years ago and has slowly vacated the building of tenants to use the space for their own purposes (me and two other tenants remain with new leases for 5 years), c) things have changed for the new owner and they are open to selling me the building. The building is obviously not cash flowing like it used to, but I am optimistic I can lease out the vacant spaces, and this may be a wonderful opportunity for some rehab work. 

As I prepare to eval the value of the building and what rehab costs or hidden landmines (old HVAC, roof etc) repairs that may be lurking, I have the following questions you may be able to help me with:

1. Does anyone recommend a commercial appraiser in the Houston area? Understood that sales comps may need to be used since the building is almost empty. 

2. Will a commercial appraiser take a look at ALL the HVAC's, roof, how old they are and what big expenses may be upcoming? 

3. In addition to a commercial broker/real estate agent, and real estate attorney, do you recommend materials, checklists, threads, books or resources that can help prepare me to evaluate the building, understand the pros/cons of the deal and what to look out for (landmines) while I evaluate the deal? The more succinct, the better. 

4. How much cash/financial reserves on hand do you recommend I have for unexpected expenses (building: 50k-60k sq/ft, 10-12 commercial grade HVAC's, building is about 36 years old)?  

Thank you VERY much for any insight you can provide.