Comments on: Due Diligence For Real Estate Investors http://www.realestateweblog.org/due-diligence-for-real-estate-investors.php Ramblings and Advice From a Passionate Real Estate Investor Fri, 30 Jul 2010 16:31:36 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Staten Island Real Estate Agent http://www.realestateweblog.org/due-diligence-for-real-estate-investors.php#comment-1031 Staten Island Real Estate Agent Tue, 21 Jul 2009 14:02:37 +0000 http://www.realestateweblog.org.php5-7.websitetestlink.com/?p=59#comment-1031 When investing in any property you absolutely cant leave any stone un-turned. You have to truly understand everything about a potential property otherwise you leave yourself open to disaster. When investing in any property you absolutely cant leave any stone un-turned. You have to truly understand everything about a potential property otherwise you leave yourself open to disaster.

]]> By: Jonathan Pollack http://www.realestateweblog.org/due-diligence-for-real-estate-investors.php#comment-979 Jonathan Pollack Wed, 08 Jul 2009 19:58:00 +0000 http://www.realestateweblog.org.php5-7.websitetestlink.com/?p=59#comment-979 I would like to point a part of real estate due diligence that is commonly overlook and could potentially ruin an otherwise good investment. Many times buyers have to move quickly to purchase commercial buildings when they show up on the market . Because of this many things are taken at face value and not investigated in more depth. Building owners overstating the rentable square feet of their building is one area which I have personal knowledge of. I have measured millions of square feet in my career and about 80% of the time there is some sort of discrepancy between what is listed on the leases and what is physically present. In one case I uncovered 10% less rentable square feet in the building. This potential pitfall could destroy an otherwise profitable ROI when the new building owner goes the rent out his newly acquired space. It is essential potential buyers hire professionals with measuring experience and knowledge of rentable square feet standards such as BOMA. Many times architects don't think in terms of rentable square feet. They are more concern with how buildings are designed and making them ascetically pleasing. Also don't count on your broker to find the problem. The fact is that the vast majority of commercial brokers don't know about measuring or the associated standards. Also you won't find many brokers who will bring up issues that could jeopardize the deal and their commissions. At the end of the day buyers should hire someone who fiduciary responsibility is to them. Jonathan Pollack Managing Partner <a href="http://www.LeaseAnalytics.com/" rel="nofollow">Lease Analytics</a> I would like to point a part of real estate due diligence that is commonly overlook and could potentially ruin an otherwise good investment. Many times buyers have to move quickly to purchase commercial buildings when they show up on the market . Because of this many things are taken at face value and not investigated in more depth. Building owners overstating the rentable square feet of their building is one area which I have personal knowledge of. I have measured millions of square feet in my career and about 80% of the time there is some sort of discrepancy between what is listed on the leases and what is physically present. In one case I uncovered 10% less rentable square feet in the building. This potential pitfall could destroy an otherwise profitable ROI when the new building owner goes the rent out his newly acquired space.

It is essential potential buyers hire professionals with measuring experience and knowledge of rentable square feet standards such as BOMA. Many times architects don’t think in terms of rentable square feet. They are more concern with how buildings are designed and making them ascetically pleasing. Also don’t count on your broker to find the problem. The fact is that the vast majority of commercial brokers don’t know about measuring or the associated standards. Also you won’t find many brokers who will bring up issues that could jeopardize the deal and their commissions. At the end of the day buyers should hire someone who fiduciary responsibility is to them.

Jonathan Pollack
Managing Partner
Lease Analytics

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