I’ve got more info from the owner… found them to be less motivated as i poured on the questions in a recent conversation. The owners had turned in a city official for asking for a bribe for a favorable variance
vote for year around rentals etc etc. At the end of my fact finding call the owner said that a full price offer is practically in their hands. I’ll ride off into the
sunset for now but i have plans to see where they are at a month from now… MAYBE A LITTLE MORE MOTIVATED. Thanks for the help and cautiousness
alert. Onward to the next one!
I’m a CS grad. Six years I purchased my first home which
was a forclosure. Jan 99 i sold it for a 40g profit. My wife
and i bought our dream house for ourselves our three kids
and four dogs… Thats the long story. Now the short story.
The company that i’m working for will be closing it’s doors
in October 99 and i’m getting that real estate rush that i’ve
felt only twice in my life. I’m tired of the 9 to 5 rut but i have
a mortgage to pay and a family to take of… Bring on the
violins… THE DEAL!!! CREONLINE is all i take in on a
daily basis… I know that i can do it. Here it is ===> POW
Lake Front property Owners Must Sacrifice ##"s
6 1BR units rent $800 per mth. 9 2br units rent $1,200 per.
1 2br suite 2000 sq.ft. (owner occ)
15 Boat slips $1,000 per.
appraised at 1.4 mill asking $775,000 sort of firm.
taxes $14,000 Ins. 3000 umbrella policy
common lighting $'s unknown at this point.
Owners have owned only 2 1/2 yrs.
These numbers are seasonal ( May to Oct ) with a posibilty
of a variance for year around. Should these numbers get
me exited or should i move on. Thanks for any and all input from creonline.
I checked out a seasonal in Derry. Leper property
listed for a year. I thought about getting it under
contract, getting a variance, and assigning the P&S to
a contractor. Owners weren’t interested in the
“subject to’s”, or my lowball offer. Said getting a
variance had been tried trice before. Just wanted
to sell, but not in a hurry to. Things didn’t check
out any other way, and so I moved on. In any event,
I was given this advice:
Be sure to put “subject to getting a variance” in
your P&S. Scan the minutes of previous zoning board
meetings to get an idea of what they’re like. Look
for anybody well connected who can represent you at
the meeting and swing votes in your direction. Ask
the people in the zoning office for advice. As you
can see, variances and town politics go together.
Also, if possible, go to a meeting to see how it is.
Just do your numbers, make an offer, and be prepared
to fold this hand if things don’t check out.
First of all, I think that your ambitions to quit the 9 to 5 routine and create your own opportunities are definately very possible. My opinion on this deal is to Be Careful. Why are the owners selling after only 2 1/2 years of ownership? Resort businesses can be very tricky for profit. I live in a resort town and everyone does great from June to September, but when the tourist season stops a person can’t even keep track of the businesses going out of business. I just got back from a vacation on the Oregon coast. When I’m in other areas I am always looking for opportunity so I talk to a lot of people. Even though the area I was in seemed to be packed with tourists, all the business owners I talked to talked of nothing but how hard it is to survive during the off season. I met a man who owned the bait and tackle shop where I rented a boat for crabbing. He offered various kinds of sporting goods, some groceries, rental boats, etc., etc.
From the outside it looked like a successful little business. After talking to the current owner, I found things a little different. He said that he had just purchased the business two years ago for $100,000 (including buying some new equipment). The seller had told him all kinds of stories about big profits. This guy told me that he only cleared $6,000 last year. You guessed it…he definately was not happy about that. He said he was working himself to death just to try and make a profit. Unfortunately, most people tend to exaggerate the truth about profits when selling a business. Resort towns are the worst because the profits can be huge for a few months, but on the whole for the year, they might not be very good or even negative. My advice is to walk around the area where this business/investment property is located and talk to other business and apartment owners. They will give you some insight on how things ‘really’ work in the area that you are interested. Am I sounding negative? My point is that there are real opportunites out there; just be careful not to buy someone else’s pain in the neck. Anymore, when I buy a home or business, I always figure out what the worst case scenario can be and if I can handle that, then the property is a “Buy”. Don’t get discouraged if this one doesn’t work; there are plenty of opportunities out there. Good Luck!!!
Dave
Take some of that profit money and buy mobile homes. LONNIE DEALS. That 9-5 can go away. Take 10 grand buy a least 5 mobile homes and create $1000.00 reaccuring revenue.