Page 143 - Trump University Commercial Real Estate 101

Ho w to Disco ver the Truth behind a Deal

Then the engineer will review the mechanical systems such as heating,
air-conditioning, ventilation, electrical, and plumbing. He ’ ll also check
at least some of the interiors of units, looking for the common prob-
lems we discussed before, or anything major.
The inspection report will tell you the true physical condition of
the property you are getting into. Is there a lot of deferred mainte-
nance? Are the major mechanical systems fairly new and energy effi -
cient, or on their last legs? How long will that roof last? Does the
property comply with the Americans with Disabilities Act (ADA), and
both state and local building codes? Not only will you know about
any problems, but the report will also give you cost estimates of any
recommended repairs.
Though I ’ ve found these estimates to be fairly accurate, engineers
are not contractors. If you discover a problem that needs fi xing, bring
in a contractor to give you a detailed estimate.

Site Plans and Specifi cations

These are the documents that were used to build the property. They

include building plans, floor plans, and land - use documents. You must
have a copy of them for your records. If you plan any changes to the
property, you will be required to produce these documents when your
contractor pulls , or applies for, a building permit.

Survey

The survey tells you where the buildings sit on the property, where the

property lines are, if the property is in a flood zone, and many other
relevant details. You must have this information to determine that the
property complies with various codes. You also must make sure that
there are no encroachments onto the property from an adjacent land-
owner, and that your property does not encroach onto another site.
Get a copy of the survey from the seller, so that you and your team
can be familiar with the property details. Understand, though, that
your lender will require an updated survey. You may be able to save

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