Real Estate Investment Checklist
Investing in real estate can seem like a daunting task, even if it’s not the first time you’re doing it. The Anders Real Estate team has compiled a checklist of what to think about when considering a real estate investment, such as the type of purchase, property zoning, leases and more. Consulting a real estate professional is always advised, but the checklist below will help you get started.
- Is the building residential or commercial?
- Is the property zoned for the intended purposes? (i.e. residential, commercial)
- Are there partners involved with the investment?
- Will the purchase include any debt? (Recourse, Nonrecourse)
- Will the transaction include any like-kind exchanges?
- Have you considered holding the investment in your IRA?
- Does the entity have an operating agreement?
- Is the property held by an LLC or LLP?
- If self-rental, is the property held in a separate entity from the operating company?
- Is this a triple net lease?
- Is the building new?
- If not new, is the building more than 3 years old?
- Does the seller have title to the property with no liens?
- Has the property been inspected by a licensed professional?
- Has the property been appraised in the past 90 days?
- Does the property need an environmental assessment?
- Will you have a capitalization policy in place?
- Should the property have a cost segregation study performed?
- Can the property take advantage of energy tax incentives? (179D study)
- Does the property qualify for federal or historic state tax credits?
- Are you insured with the proper policy?
- Will you maintain records and documentation of incidents?
- Have you partnered with professional contractors?
- Will you participate in managing this property?
- What level will you participate? (Active, Material, Real Estate Professional)
- Have you considered a grouping election for multiple activities?
Click here for a detailed road map to help guide you through the purchase and management of a real estate investment. If you have any questions, please feel free to click here to contact us.