Commercial Real Estate - A Check List to Purchase By

Commercial Real Estate - A Check List to Purchase By

When purchasing commercial real estate one of the most important items to do is Due Diligence. Here is a list that you can use to increase your understanding of the commercial property you might be looking at:

Financial records:
• Annual profit and loss statements (P&Ls) past 3 years minimum (5 years preferred)
• At least one year monthly P&Ls (preferably two years)
• Balance sheet (3 years)
• Rent Roll including term, deposit, and payment history

Tax returns- 3 years

Insurance: Insurance Policy; including all riders, risk assessments, and disclosure affidavit for carrier

All Existing Loan Documents: including notes, deeds of trust, closing statements, title policy, rate riders, etc., and contact names and numbers.


All Leases: entire copies plus any addendum or riders.

Any service or advertising contracts: (Trash, extermination, maintenance, management, commission agreements, union agreements, vending, billboard, pay telephone, etc. and any instrument or contract to be assumed by Purchaser)

Copies of all recent appraisals, engineering reports, environmental reports

Survey (as-built), legal description, architectural and engineering plans and specifications

Payroll register: List of employees including name, position, wage rate, and entitled benefits

Business license

Physical inventory of furniture, fixtures, and equipment, and supplies

Utility bills: Water, Sewer, Gas, Electric (at least two years of monthly statements) (or recap report from provider showing usage and cost)

Bank statements showing deposits for last twelve months (optional)

Phone system documents

Computer systems

Fire System inspection reports

Property Tax tickets for the past three years (real estate and personal)

Litigation History: details of any past or pending litigation (if none, then affidavit from owner)


If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125

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