Brian Hennessey - The Due Diligence Handbook For Commercial Real Estate: A Proven System To Save Time, Money, Headaches And Create Value When Buying Commercial Real Estate

Reader Comments

Must Read if you are buying any commercial property. The author has done a great job identifying the items and issues that must be reviewed and considered before purchasing an investment property. The book takes a step by step approach and is very comprehensive. It provides good check lists and forms, and identifies many due diligence items that most people would not think of. I run a real estate investment company and would recommend this book to anyone who is considering buying an investment property.

Mike Adler, President, Adler Realty Investments

The Due Diligence Plan Handbook for Commercial Real Estate is a welcome and pragmatic addition to the field of commercial real estate. It contains a step-by-step template for the due diligence process that can be utilized by both beginning real estate investors and seasoned professionals. I was especially impressed with chapters 4 through 6, which detail the inspections and reviews that should be undertaken to determine the physical and financial condition of the property. The information you will uncover through these inspections and reviews is critical to determining whether a property will be a good investment and establishing an appropriate purchase price based upon its physical condition and cash flow. Chapters 4 through 6 alone are worth the purchase price of the book. As an attorney I also appreciate the advice in chapter 3 regarding documenting all communications and developing a tracking system so that the buyer can make certain that all issues which have arisen in the course of the due diligence process are addressed. I highly recommend this book, especially to anyone who is new to commercial real estate investing.

Charles P. Werner, Real Estate Attorney

If youre a broker, lender, buyer or seller in real estate, this is a must read. Im glad to have come across this book recently and recommend it highly to anyone involved in real estate, commercial or residential. The Author did a fantastic job breaking down all aspects of what to look for when buying commercial real estate which can be also highly useful for sellers as well in preparing their properties for sale. The book gives you a very strong foundation in all areas of how commercial real estate works, leaving the reader with a very good overview of what to focus on prior to making the offer as well as during their free-look period. I learned more reading this book than I learned in my college real estate courses. Easy read, well written and an excellent reference manual youll want to keep on your desk going forward. Two thumbs up!

Tim Hasselbach, Property Condition Assessment Technician

Investigate Investment Real Estate Like a Seasoned Professional. What a helpful tool for anyone (including old pros) acquiring commercial real estate. Too many investors find trouble only after they have closed escrow. However, many after closing issues can be avoided with a thorough due diligence review prior to owning. Mr. Hennessey has provided a thorough overview of the items an investor should investigate. If the advice offered in this book is followed completely, even the most unsophisticated first-time buyer will appear to be a seasoned commercial acquisition expert.

Bruce Blumenthal, V.P. Acquisitions, Blue Ridge Properties

Incredibly digestible and thorough!!! This book is fantastic. As a real estate attorney, I appreciate the concise pragmatic style in which complicated aspects of diligence are clearly conveyed. Diligence is an often overlooked component of real estate, and this book gives both the sophisticated investor and the first-time investor a playbook to focus on the important issues involved in a deal. I highly recommend this to anyone in the real estate business, as it will help refine your own practices.

Brad Keyes, Real Estate Attorney

This information will give brokers another skill set and add tremendous value for their clients.

Investors are always looking for better ways and smarter team members to purchase investments with. This due diligence system helps you to become a more valuable team member.

Mike Lipsey, President, The Lipsey Co,International leader in training and consulting for the commercial real estate industry

This book is well put together and easy to read. Plus, it isnt too big or too small. Plenty of real world suggestions and checklists which are great for everyone in any area of real estate; particularly Commercial, Industrial, and Multi-family. Even the folks in strictly single family residential could use many of the suggestions in the book to really help out their clients move through any given transaction and dispatch their obligation as a fiduciary.

Todd Rubinstein, Real Estate Broker

Contents

Introduction

Theres a huge problem in the commercial real estate business that nobody is talking aboutDUE DILIGENCE. The majority of investors, real estate brokers and commercial real estate professionals barely scratch the surface conducting their due diligence when purchasing commercial real estate investments. Investors are taking unnecessary risks and throwing money away or making bad investments, by not properly performing due diligence. Brokers are putting themselves at risk for potential litigation and missing an opportunity to help their clients as a true ally by learning these principles.

Having and adhering to a proven system while conducting due diligence, allows you to do it faster, easier, more efficiently and youre less likely to miss something.

It reduces the stress; makes you feel more confident; makes the sellers and agents of the properties less likely to try to play games while negotiating with you. It ultimately helps to make you a better investor because you are more prepared to make an informed and intelligent decision to buy or NOT to buy.

Commercial real estate transactions are more complex than buying residential properties and have many more facets to the investment and negotiations. Its imperative you learn how to deep dive into the investigation of an opportunity so you can uncover those issues that can affect the investment, both positively and negatively. By learning how to do it correctly you will be in a better position to negotiate against any seller. Youll be armed and ready to strategically address those items and challenges to place yourself in an advantageous position.

This handbook was created to give an overview of the due diligence process. It is written in a concise pragmatic fashion as a real due diligence tool and is not intended as a voluminous textbook of information on the subject. It is based upon over 30 years of experience in the commercial real estate business and acquiring over 9 million square feet from private and institutional owners.

The fundamentals remain the same whether youre acquiring residential rental properties, an industrial building, a skyscraper or a retail shopping center.

Many of these lessons covered here were learned the hard way. There are two ways to learn; from your own mistakes or from others mistakes. Its always easier and cheaper to learn from others mistakes. I am convinced this handbook will be a useful tool from which investors can avoid mistakes in the due diligence process and gain a better understanding of the salient due diligence issues, as well as create value when purchasing investment properties. I say convinced because I wrote this handbook for myself over a six-year period of being an acquisition vice president for an investor and his investors purchasing properties across the U.S.