There are several categories of real estate and each with questions unique to them. Property fronting on a lake or ocean are different yet there are similarities. Farms or farm land have their own set of questions depending on what you want to do with the property. Brick and mortar store property. Apartment complexes are another set of conditions and needs. And, of course property you plan to live in.

LAKE OR OCEAN FRONT PROPERTY

1. Will you live there the year around? If not, do you plan to rent the property most of the year.

2. How close to the water line will the lot extend? This affects your water rights, and perhaps flooding possibilities.

3. Is flood insurance available?

4. Can you put up a dock if one does not already exists? Is there a state fee for the dock? Some states do charge an annual fee.

5. What utilities are available?

6. What are the taxes?

FARMS OR FARM LAND

1. Does it have a house and out buildings?

2. What are the taxes?

3. What utilities are available?

4. What is the lay of the land? Gently rolling hills, or hills, or flat? These affect its farming ability, thus what you can do with the land.

5. Do you plan to have a tenant that lives on the property? If just land, will you get a neighbor farmer to farm the land or is it an investment? And what are the arrangements?

6. Are fences in good shape? Are there usable ponds?

7. What about insurance? For the property? For the Crops?

BRICK AND MORTAR STORES

1. If you are opening a new business, do not buy the property. Rent until the business can pay for the property, preferably in one lump sum.

2. Location, location, location. A good location is on a busy intersection near a college campus. Stay away from malls.

3. Does it have plenty off street parking?

4. What utilities are available, and are there any unusual costs?

5. How much is the rent, or mortgage payment?

6. Will you maintain the property, or will the landlord?

7. What will insurance costs be for the store items, the stock? Will the landlord maintain property insurance?

APARTMENT BUILDINGS OR COMPLEXES

1. Are you going to live in one of the apartments? Generally, it is better not to live on site.

2. Is the structure sound, and solid? What about the roof?

3. Is there adequate parking? Some properties may have parking garages, thus are the garages sound, and adequate (at least two) in number for each tenant?

4. What utilities are available? And are they more than sufficient? Are plumbing and wiring in good condition and more than adequate? Have them checked by an expert?

5. What about heating? Individual furnaces or central heating for the whole building? Have it checked by an expert?

6. Is there air conditioning individually or a central system? Have it checked?

7. What is the gross income? Can rental fees be raised?

8. What is the projected net income after expenses? Do not start in the red? If necessary have the present owner raise the rent before you buy.

9. Will you have a manager? What will he or she receive for payment?

10. What are all the expenses, individually and collectively?

11. Always use a written rental contract. In that contract make provision for eventualities.

12. Make sure property meets all local, state, and federal safety regulations.

RESIDENTAL HOUSE

1. Does it provide floor space and storage for present needs? Storage space will usually become full overtime.

2. In what area is it located? And is that area likely to remain stable over time?

3. Will the mortgage payment exceed one weeks net pay? Be wary if it does.

4. What are the taxes now, and will they go up when you buy? They likely will.

5. What will be the insurance costs?

6. Have the plumbing, wiring, and heating checked? Is there repair or maintenance needs now?

7. What utilities are available? And are there any special rates because of the location, such as a farm.

8. Is the building solid, well kept, or is work needed inside or out?

9. Check the roof? Old, or need replacement?

10. Will the seller provide buyer's insurance to protect you the buyer?

11. Are you buying a foreclosure? Check thoroughly all the implications of that situation, making sure you will have a clear title.

12. When will the property be available for you to move in?

Summary

These tips will surely lead to other questions, and all need to be asked and answered. Don't be timid and fail to ask and get answers to your questions. It is your money so determine the net income, and it may be where you will live for a long time, so ask away.

Don't buy blind.

You can check some of my books at www.lulu.com/mobleria.

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