commercial real estate investing

[rosebush]

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Hi this is rosebush here and I am just about to take the big step and begin in the commercial property investment business .I would greatly apreciate any help and advice out there My basic plan is to buy freehold commercial properties preferably with more than one tennant with leases of at least 10 years left .so that way I know pretty much for certain that I can pay off any finance needed of the property and still make a good profit.most of t6he information I can find is all from America and I would like to know the legal way in the U.K. or would I be better off Trading as an american company?

[Wolf]

Hi Rosebush, welcome to the forum.

Don't get too tied up with the thought that sitting tenants will always be there. They may well have long leases but that doesn't stop them from going bust, then your lease is worth nothing.

Try to get a credit check done on them before any aquisition (you can buy that online), and make sure you are aware of their rent payment history from the current landlord. Any non-payment recently suggests problems you don't want to take on.

Check out what is allowable as part of the service charge, and that there is no cap in place to limit the tenant's liability for overhead or capital expenses. If there is and you come across a serious problem with the premises, you will have to rectify it with no recourse to the tenant.

I have no experience of trading as a US company, but one thing does spring to mind. This is a good time for commercial property ownership and many new landlords are buying in. In such a market why would anyone want to sell until the market had reached its peak? Check any property very, very carefully beforehand using a qualified surveyor, and also check out liabilities for such things as Disability Access under the new building regs, and particularly asbestos - its a huge cost to remove, and something all new tenants will want a disclaimer for these days. Better to know the problems beforehand?

[rosebush]

Thank you your comments where very useful , I have already planned to use a surveyor, otherwise would be foolish .I am considering using a property management company also but I'm still undecided .As they will charge a percentage .I don't know how much I should pay to get a good deal ,no-one wants to pay over the odds.I know there are two main types of survey's used in this instance but I don't know if i need to have both. And would I have to pay for them as two seperate or could I combine they and hopfully pay a bit less.Or is that at surveyers discretion ?I think I know the answers but I like to have an indapentant opinion.