High Rise Building by Tom Markel
Purchasing a high rise building is a process. You'll want to have the structure thoroughly inspected and appraised before you make an offer. If it's been in existence for a while, you'll want to check on the history, including the average occupancy rate and any problems that may have occurred with the building itself. Floods in the past, electrical renovations, and work on windows, doors, or rooftops could be indicators of potential problems that you might have to deal with. You'll also, of course, want to compare the high rise and its price to other similar structures in the area.
There's more to it, but the steps outlined above are a good start. When you apply for a commercial mortgage from a bank or mortgage broker, they will want to know if the building has a history of problems. They aren't the ones who will be managing it, but your bottom line at the end of each month directly affects your ability to make your mortgage payments. If you're tied up making repairs or trying to rent vacant space, it's less likely that the bank will get paid on time. You don't want to buy a building that will be a financial weight dragging you down. Real estate should be profitable.
Create a business plan and outline how you will turn your high rise investment into a profitable venture. If the building was in operation before, do an evaluation of the past owners' performance and list any changes you are going to make in the way you'll manage the property. If the previous owners were successful, describe why and what you are going to continue. If they failed, outline your plan to get different results. Most importantly, explain to the lender exactly how you plan to pay them back. Have a plan for that and a back-up plan just in case the first one doesn't work.
Once you fill out the iBank loan application for a commercial mortgage, you won't have to do any footwork to find a bank or mortgage broker. We'll take care of that for you. You will, however, need to have some answers about your new high rise investment when the bank calls you for final approval. Preparing those answers is the homework you need to do ahead of time to prepare. Know your investment and know how you're going to make it pay off for you. Be thorough and you should get approved.