The Basics You Need to Know before Purchasing Commercial Property
(MediaQuire) Miami, FLORIDA – Purchasing commercial real estate may seem fairly easy on the surface, but even before an investor has begun the process, he or she must know the basics. Some of the basics include determining how much you can afford, what to look for to make sure you are purchasing a structurally sound building and what to look for when it comes to wiring and plumbing.
Deme Mekras and Elliot Shainberg, owners of MSP Group based in Miami, are experts at guiding their clients through the basics. Mekras, CEO of MSP Group, says, “With our vast experience and deep relationships in the commercial real estate community across Florida, we are able to give our clients concierge-type service and that is what sets us apart.” He goes on to say, “The process can be overwhelming so we believe it’s our job as experts in this field to provide our clients with the potential risks associated with every action or inaction.”
Below, Mekras shares the top three details an investor must consider before purchasing a property.
- Always check the roof: There are only a few types – flat or pitched, wood or concrete. Knowing the condition of the roof even prior to making your offer will help you properly establish your capital reserve schedule and even keep you from wasting time on legal and due diligence before you own; reason being, if you go into contract thinking the roof is good only to find out it is shot and needs replacement, this big ticket item can be a deal killer. Concrete roofs are preferred in South Florida on account of two major reasons: durability and they cost less to insure.
- Inquire about plumbing: This is a big deal! The plumbing type and condition affects the amount of repair and maintenance cost a landlord will endure during their ownership. The preferred combination is copper supply lines with PVC drain lines. In buildings built before 1980, often you will find galvanized or cast iron pipes. With this material, it’s not if, but when you will have a total system failure. You need to factor this into your financial model when you buy.
- Check out the wiring: Make sure the wiring is up-to-code with fire standards. Look for corroded wiring that may need to be replaced, which can be very pricey. What is preferred is all copper wiring on circuit breaker panels. If the property still has the old “screws” or fuses, you may have aluminum wiring which is a liability and poses an issue with insurance carriers. Also in this category are life safety issues, mainly fire alarm and detection systems that run on electricity and are required by code.
About MSP Group
RESULTS | INTEGRITY | SERVICE
MSP Group LLC is South Florida’s premier commercial real estate brokerage house. MSP Group LLC was founded by Deme Mekras, CEO, and Elliot Shainberg, Managing Partner; industry veterans with combined experience of more than 25 years and $500,000,000 in closed deals. Deme and Elliot formed MSP Group LLC after establishing themselves in the South Florida market as highly trustworthy brokers and advisors of multifamily properties that get maximum results for their clients with a level of service second to none. Because each client’s needs are as unique as the client themselves; the “one size fits all approach” is the wrong approach. Clients of MSP Group LLC routinely receive truly objective and tailored advice regarding their real estate portfolios.
MSP Group LLC exemplifies “the client’s agenda is the ONLY agenda.” Visit: www.mspgroup.com