Getting a Phase 1 Environmental Site Assessment for Multifamily Properties - A Big Must!
When conducting due diligence when purchasing an apartment building, one of the critical steps is to obtain an environmental site assessment or ESA. All lenders and CMHC will require you to get an ESA Phase 1.
The purpose of a Phase 1 ESA
Phase 1 ESA is to identify actual and potential site contamination. It looks at the current use of the property and its history.
In this post, I discuss what's in an ESA. The ESA is done by a qualified engineer and you would normally only need a Phase 1 ESA done unless an environmental site contamination potential is found and which case you need to get a Phase 2 ESA, which could be problematic. A Phase 3 ESA would deal with the remediation of the site contamination.
YOU MUST TREAD CAREFULLY!
Lenders and CMHC have a huge stigma attached to site environmental contamination and you could run into a lot of problems and be unable to get financing if the site is contaminated.
Banks and CMHC require a 'CLEAN PHASE 1 ESA'!
To know more watch the video!
To your success!
PP
P.S. Early bird registration for the 2020 Canadian Multifamily Investing Blueprint live workshops across Canada is open. Check out the details and dates by clicking on the link below:
https://www.multifamilyinvestingcanada.com/live-workshop-2020
