Page 148 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

Zoning Certifi cates

Your property must be zoned for the purpose you intend for it. Never
assume that because the buildings are being used that way today, that
they were approved for that use. I have the scars to prove that the past
doesn ’ t matter.
You cannot appear before a zoning board as the new owner of a
property and hope to win by saying: “ Well, it was a shopping center
before, so I should be able to keep it going as a shopping center. ” All
you will accomplish is to annoy these people, whose vote can either

clear or kill your deal. Therefore, find out in advance what the actual
zoning is.
Also see if there is multiple - use or mixed - use zoning for the prop-
erty. This is always a plus: Sometimes after owning a property for a
few years, the highest and best use changes to a different property
type. With multiple or mixed zoning, you may not have to go before

city officials and rezone.

Insurance

Get the insurance history for the property. Find out what claims have
been paid or made in past years and start getting insurance rate quotes.

Sometimes it can be difficult to get commercial insurance. The fi rst
thing to try is to go to the existing insurance company. Ask what they
would charge to reinsure the property under your new ownership.

Local Ordinances

Forget about common sense. You need to know exactly what ordi-
nances your city has, relating to your property. That ’ s another reason
to hire an experienced local property management firm, which will

know these rules inside - out.

Building inspectors and code enforcement officers are overworked
and underpaid. That means they ’ re on a hair trigger to become
annoyed with a building owner.

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