Page 144 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

money by calling the surveyor who ’ s listed on the blueprint and asking
for an updated survey. Using the same firm can save you thousands of

dollars when compared with hiring a surveyor who ’ s unfamiliar with
the property.

Tool and Supply Inventory

All tools and supplies should go with the sale. While you ’ re on site,
take an inventory of all the gear in the maintenance area, equipment in

the leasing office, and any other facilities.
In fact, you would be smart to get the make, model, and serial
number of each piece of substantial equipment. Sellers have been
known to substitute cheap equipment and take the good stuff with
them. If you make sure you know what ’ s on the property — and some-
one sees you being meticulous about this — you ’ ll have a much higher
chance of seeing that equipment again when you own the property.

Appraisal

This document will largely determine the value of the property. You
will not order it, because the lender will choose its own appraiser.
The appraisal must be ordered as soon as you know the property
will pass your physical site inspection. It ’ s the one item most likely to
hold up your deal, because of the length of time it takes to get an appraisal
done. If necessary, politely encourage your lender to get it started.

Phase I/Phase II Environmental Inspections

The lender will also order this report. As I mentioned earlier, even if
you are not financing the property, you must get a Phase I done for

your own peace of mind.
The Phase I report process inspects the property for all kinds of
hazardous waste. It tests the water, soil, air, and materials used to con-
struct the building. If everything looks good, the property passes. If
there is a problem, then a Phase II must be done.

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