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.

  1. Is the building residential or commercial?
  2. Is the property zoned for the intended purposes? (i.e. residential, commercial)
  3. Are there partners involved with the investment?
  4. Will the purchase include any debt? (Recourse, Nonrecourse)
  5. Will the transaction include any like-kind exchanges?
  6. Have you considered holding the investment in your IRA?
  7. Does the entity have an operating agreement?
  8. Is the property held by an LLC or LLP?
  9. If self-rental, is the property held in a separate entity from the operating company?
  10. Is this a triple net lease?
  11. Is the building new?
  12. If not new, is the building more than 3 years old?
  13. Does the seller have title to the property with no liens?
  14. Has the property been inspected by a licensed professional?
  15. Has the property been appraised in the past 90 days?
  16. Does the property need an environmental assessment?
  17. Will you have a capitalization policy in place?
  18. Should the property have a cost segregation study performed?
  19. Can the property take advantage of energy tax incentives? (179D study)
  20. Does the property qualify for federal or historic state tax credits?
  21. Are you insured with the proper policy?
  22. Will you maintain records and documentation of incidents?
  23. Have you partnered with professional contractors?
  24. Will you participate in managing this property?
  25. What level will you participate? (Active, Material, Real Estate Professional)
  26. 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.