PART 1: You inherited commercial or industrial property, now what do you do?
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Where do you start – just some of the important questions that need answers:
- What type of commercial property did you actually inherit?
- Was the commercial property being used for what it was actually zoned for? (This can increase or decrease its value, so it’s important to figure this out asap.)
- Should you sell the commercial property to cash out, or do you keep and lease it?
- Would it cause less problems to just to sell the commercial property, especially with multiple heirs involved?
- If you think you want to lease it, should you hire a leasing and management company or manage it yourself? Managing a commercial property by yourself or with the multiple owners with various opinions who inherited it can be a complicated endeavor and headache. (Typically at least one of those who inherited the property wants to immediately sell for the money.)
- Is there a mortgage or private financing on the property that must be paid in full upon change of ownership?
- Will you and any other heirs owe more than what the commercial property is worth and can be sold for?
- Who should you hire to sell the commercial property, and for its highest value? Can a regular residential Realtor (i.e. friend) sell a commercial property?
- Is there a business that is a part of or attached to the commercial real estate that will add to its value, or is any associated business a separate entity? Who owns the business entity and how long will its lease stay in effect? Must the lease stay in effect and business in place with the sale of the commercial property?
- How do you accurately find out the value of the commercial property, including or excluding any business?
- What are the legal and tax ramifications to selling the commercial property, and any business?
- Are there back taxes or liens in addition to the mortgage pay-off that are owed upon being sold? What will you and your heirs owe?
- And many more questions, which is why you need the best qualified commercial real estate professional to help you as soon as possible.
1) Time is of the essence – get immediate answers to the critical questions when you and/or your family inherits commercial property…
How do you find the information to make the right decisions for you and the other heirs?
Some people (i.e. real estate attorneys) may tell you that you should hire them and multiple professionals to answer these many questions – a lawyer, accountant/CPA, appraiser, commercial management company, business broker, commercial real estate broker, commercial contractors, etc., and that they will contact and manage these people for you, but for additional hourly attorney’s fees of course. Most real estate lawyers charge anywhere from $200 to $350+ per hour. So this can get costly even before you know what you want to do. Plus, the real estate attorneys may be getting a referral fee or other benefit from the professionals they choose for you, for referring your business to them.
2) There is a better choice than a high-priced lawyer for getting the right answers when inheriting commercial property…
Those who inherit commercial property should utilize a RealtyPRO CCIM commercial Realtor, the most trained specialized commercial real estate agents and brokers in the business.
The vast majority of average residential Realtors do not engage in commercial real estate sales, or at least not on a regular basis. Even though they can legally sell commercial properties, we do not recommend residential agents because the commercial transactions can be quite unique and complex. Using a residential real estate agent friend is NOT in your best interests and can cause you and/or your family considerable costly problems and additional liability.
IMPORTANT: not every commercial real estate agent or broker who advertises commercial real estate services has the CCIM designation.
Only about 2% of Realtors have attained the top specialized CCIM designation (Certified Commercial Investment Member), who only after taking the rigorous course and exam, have become a recognized expert in the disciplines of commercial and investment real estate. They are professional, specially educated, commercial agents/brokers trained to examine and understand all aspects of selling or leasing commercial properties and for the most amount of money. You will typically notice a huge professional difference compared to residential Realtors. They will also recommend to you and help you manage any other professionals you may need to complete the sale of your property.
3) But the best choice to help you sell or lease your commercial property…RealtyPRO
The best choice is to utilize the most experienced and knowledgeable RealtyPRO Network of CCIM commercial Realtors, as the highest standard.
Our USA and Canadian network is comprised of only the best-of-the-best seasoned & experienced CCIM professionals who will be able to answer all the questions above and more. If a CCIM is like a jet fighter pilot, RealtyPRO Advisor CCIM’s are the Top Guns of fighter pilots. What is a RealtyPRO Advisor?
Start now to at least get your basic questions answered, because time is off the essence – Request Information / Free Consultation:
We’ll have an experienced in-network RealtyPRO Advisor CCIM commercial Realtor in the area of your commercial property anywhere in the US or Canada, contact you by phone or email to answer your questions. There is no retainer fee and no obligation:
Additional articles coming soon:
PART 2: Leasing, Operating, or managing inherited commercial property
PART 3: Selling inherited commercial property