Summer will soon be here, and the time will be right, for dancing in the streets!  For those too young to remember, this 1964 hit by Martha and Vandellas guides us to find a partner and enjoy life.  

Finding the right licensed professional partner can be determinative in whether you succeed going forward in the world of commercial real estate investing!

LICENSED PROFESSIONAL NECESSARY?

Government impacts on realty every day with rules and regulations, fees and taxes, hearings and enforcement.  Connecting with the licensed professional who best understands how the rules of government impact on your unique commercial real estate is key to your success.  

DIFFERENT STROKES FOR DIFFERENT FOLKS

You will find that sometimes the same question gets a different answer from different professions. 

ACCOUNTANT.  This is your first stop when considering something which will impact you financially, especially if tax related.  Take their business advice, though, with a grain of salt – they do not work in your industry and can do what they do without ever even visiting your business.

ATTORNEYS. They are critical in negotiating agreements for commercial purchase and sale and debt.  They are needed to design the structure to implement the tax play the accountants have blessed. Just don’t listen to them on how to run your real estate!

ENGINEER/ARCHITECT. It is impossible to obtain government approvals for development (and for some renovations) without the blessing of these specialist.  They will assure that what you want is legal under the code, and more important, that the action proposed will work within your budget. Pay up here for experience; what a good engineer/architect can do to help you is not found in any book they studied in college.

SURVEYOR.  The survey is only as good as the title report, but it goes beyond the title report in detail.  The surveyor goes to the property to resolve conflicts between what is reported and what is happening on the ground (e.g., encroachments). 

TITLE UNDERWRITER.  Providing title insurance is combination of researcher, analyst and bookie!  Often the title company will take a quantum leap and insure over that which was not determined to be absolute fact.  

BROKER – REAL ESTATE & MORTGAGE.  The market for debt and real estate changes daily, the principal actors stay the same.  A good broker knows well their sources.  An effective broker will save you time and needless cost.  They will help you develop a properly packaged presentation, which they will deliver to the right company at the right time with the right terms.  Treat your brokers well!

BOTTOM LINE

Ultimately, the owner of investment real estate must make decisions which will impact their property.  

Engaging the right licensed professional for the right issue is often the difference between success and failure.  

All licensed professionals are NOT created equal; ask around before you commit to engage them.  The advice of a licensed professional may have little value outside of their narrow area of expertise.  

Being expensive does not make them knowledgeable in all areas of real estate!

If you want to discuss how this applies to a specific situation, feel free to email me directly at rick@chesslawfirm.com.