Episode #067 - How to Spot RED FLAGS in Commercial Real Estate!

Today our hosts Braden Cheek, Brian Duck and Joel Thompson from The Criterion Fund discuss some red flags to look out for when purchasing a new multifamily or retail property! Time Stamps: 0:00 - Introduction 2:07 - Red Flag #1- Avoiding financial data / falsifying Income! 4:44 - Red Flag #2 - historical vacancies under 85%. 7:09 - An example of how owners will try to get higher rent rates because of Tenant Improvement dollars. 9:52 - Red Flag #3 - Unforeseen expenses that challenge your projected CAP-X! Examples in retail: parking lot expenses, roofing expenses, HVAC costs, and tenant improvement $$$ for vacant spaces. Examples in multifamily- boiler/chiller costs, roofing expenses, parking costs, & non-rentable units. 15:36 - Red Flag #4 - Receiving a "Further Investigation Needed" notification during the property's environmental inspection! 20:53 - Environmental testing in multifamily. 22:18 - NOI changes / final thoughts. *Be Sure to check us out on Spotify and Apple Podcasts for the Audio version of today's episode!** https://open.spotify.com/show/08KmNvqGV5HjmHUC8fLuce https://podcasts.apple.com/us/podcast/how-to-invest-in-commercial-real-estate/id1543470290?itsct=podcast_box&itscg=30200 Links mentioned in this episode: www.TheCriterionFund.com www.HowToInvestInCRE.TV Invest.HowToInvestInCRE.com To sign up for our exclusive investor list, click below. https://www.thecriterionfund.com/join-our-investor-list MB01GOYTK7WTBLE