As an investor, you understand the critical importance of research. If you’re unfamiliar with the complex realm of commercial real estate and zoning ordinances, contract law, and other potential legal pitfalls, a real estate attorney can help you manage all proceedings and transactions. Here’s what you should know about mistakes to avoid.

3 Commercial Real Estate Mistakes That May Sour an Investment

Inadequate Property Management

Owners are legally responsible for the safety and security of their properties, tenants, and guests. But it’s nearly impossible to address every maintenance concern single-handedly, especially if you own multiple buildings. Legal obligations—for example, ordinances regarding groundwater supplies, waste management, structural integrity, and noise—may also be beyond your capacity.

Hiring an experienced management team to help with physical upkeep and supervision of commercial real estate is a smart move. With an appropriate partner and agreement, you can protect your investment from legal complaints and lawsuits while also keeping your valued tenants comfortable and happy.

Lack of Diversification

Even though real estate can be a reliable and profitable investment, diversification is essential. Don’t undermine your potential for success by failing to invest in more than one type of property or locality.

When investors pour their resources into just one market, they assume higher risks. Diversifying your real estate portfolio helps to increase your odds for above-average returns and hedge your bets against  unforeseen disasters, such as a flood, market collapse, or new competition.

Insufficient Legal Protection

From drawing up contracts with investment partners to creating leases for commercial tenants, there are many legal issues involved in owning and renting property to other businesses. It’s beneficial to have counsel in place to step in at a moment’s notice. Inexperienced investors may make the mistake of working with a firm that handles residential real estate, but legalities in the commercial and corporate world are unique. To protect your investments in commercial property, work with a real estate attorney who’s intimately familiar with commercial proceedings.

If you need a real estate attorney in Dothan, AL, turn to the knowledgeable legal team at Lewis, Brackin, Flowers & Johnson. In practice for over 50 years, they have a statewide reputation for handling commercial real estate purchases, construction, leasing, investing, and more. To view details about their practice areas, visit their website, or schedule a free initial consultation by calling (334) 792-5157.

No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.