The COVID-19 Virus Outbreak is quickly destroying large part of the US economy. Many businesses will be looking to unload commercial real estate to generate cash. They will be under pressure to sell. This is a great opportunity for savvy investors with money to spend on good real estate deals. But, moving to fast to close a deal without the right help can saddle investors with a lemon of a parcel. The cost to fix problems like these can exceed the price paid for a parcel:
- Problems with legal access.
- Hidden or poorly located conservation easements.
- Blanket utility easements.
- Building encroachments.
- Clouded land title.
What are 3 things you need to remember before you buy commercial real estate from a buyer under pressure?
- The buyer is in a hurry to close the deal and get cash. Don’t let them you rush you through due diligence. Work with a consultant team that can speed closing, but don’t skip the important steps.
- You need to get boots on the ground before a deal completes. Site visits almost always raise important questions you need to ask the seller. If you can’t get to the site, hire a consultant to do so. Have them prepare a technical report of what they find.
- You need land title insurance to protect your investment, even if you are paying cash and don’t have a lender. Get a title report and have it reviewed by a land attorney and a competent land surveyor. The title report may have exceptions from insurance coverage title company should remove. It may also have other information that reveals problems with the parcel.
We can help you move quickly to complete due diligence for a buyer under pressure. Our turn-around time on a land title survey is only 5 working days. We can provide you with a boundary and land title check or review a land title report in as little as 24 hours. If you are working with real estate in Central California, we provide boundary and land title quick checks and surveyor review of title reports at no cost.
The next few months will hold great deals in real estate for savvy investors. Don’t let your excitement cloud your judgment. Remember the three things mentioned in this post and let us help you quickly perform your due diligence. Reach out to us if you need help!