CHAPTER 22 Warning Signs in Your Building or Area
Due diligence and proper vetting are massively important when making an investment like this. You can’t be careful and thorough enough. Moving into an office that you own and finding out problems after the fact is something that should be avoidable, no matter how hidden the problem was. There are certain warning signs that can be seen when doing your due diligence. You may just need to know what to be looking for. Here are a few warning signs that may signal that your deal and building may not be the best investment.
IT'S IN A BAD AREA
I bring this up over and over again because it’s a common mistake. Don’t sacrifice on the area because the price is so appealing. It is priced like that for a reason. Don’t waste your time or money investing in a property located in a bad or declining area. Once an area gets a reputation like that, it takes a long long time to go away. It isn’t worth the trouble most of the time. Finding out about the area may take a little footwork. Talk to tenants in retail areas around it and other property owners if you can. Another factor to look at is rising property taxes, public transportation being reduced in the area, an increase in rentals, and malls moving into the area.
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