Data Gathering Steps For Looking at a Property

There are several things that you need to take note of when examining a property, particularly if you are looking at a number of properties. A thorough list will help you determine all of your upfront costs, rather than getting hit with bills that you didn’t think you had right out of the gate.

The first is information about the land. You need to note dimensions, area, access, services, and the environmental condition of the property. Some items, such as access and environmental condition, may not be mentioned in any literature about the property, but can be a vital factor in your purchase decision. You don’t want to find out after the sale that you got such a great deal because your property was situated on polluted land.

The second set of items to consider are aspects of the building itself. Dimensions, area, type of construction, number of stories, number and type of units, area of units and work needed are all very important to note. It is also important to note whether or not a multi-family building will require a fire retrofit.

Danger signs that a property will exhibit if it is a bad investment are:

• Being next to hydro lines, freeways, or railroad tracks
• Risk of flooding due to poor drainage or vicinity to waterways
• Bad neighborhood
• High property taxes
• Failing foundations or other severe structural issues
• No parking or not enough parking for the intended use

Be sure to ask the Real Estate agent during the visit if there are any items that were not on your checklist or in the literature that you need to know about. Agents can have quite a few listings and may not have listed absolutely everything they could have about the property . This simple question will usually lead to about twenty minutes worth of valuable information that you need to know, so be sure to ask it above any others.

These are all just suggestions based on a general investment property purchase. You will want to come up with your own personalized checklist prior to the purchase of any real estate that will include all of the factors that you are personally looking for as well as those suggested above.

Checklists for several types of buildings (industrial, office, retail, and multi-family) can be found in the book Commercial Real Estate Investing in Canada, available for purchase on this site.