Posted by Judah hardmoney Hoover on September 07, 2007 at 10:06:42:
the lease is triple net, they pay all taxes and insurance. good company financials goes with out saying.
BIG DEAL Need Help - Posted by Judah hardmoney Hoover
Posted by Judah hardmoney Hoover on September 06, 2007 at 12:56:37:
I have a deal I am trying to put together… I am NOT trying to raise money on this site
A large established car dealership with 30 years of business is looking to sell and lease back. Buy back terms are yet to be set. Please see details below and let me know your thoughts.
$3.9 mil Recent appraised value
$3.7 mil our purchase price
(they will use the money to consolidate all inventory lines, buy a Truck franchise and stock it)
5 acres commercial RE with existing car dealership
good name in area not rinky-dink, but it is single tenant
$30,800/ month lease back, triple net
Financing on the table…
Local institution will lend 80% of 3.7mil purchase price
$3,145,000 loan amount
7.3 fixed 5 years, 10 term, 20 year amortization
$299,432 debt service year ($24952.66/month)
I have some 30 year options but the rate is higher
I have the ability and knowledge to raise the $600k I need from the local market, but then I could only pay about 11% to my investors, and they would be in 2nd place to the bank.
Obviously once I see more of the dealership financials I will walk if they smell, but lets assume they will improve business from good to great with the additional inventory they are going to do.
What does it take to make this in to a deal? What does the monthly lease need to be to make it work? How would you make it better?
Re: BIG DEAL Need Help - Posted by Jim
Posted by Jim on September 07, 2007 at 07:36:51:
Do you have tax and insurance data yet?
And yes, you need the companies financials. Make sure you aren’t bailing out a failing company; since they would make crappy tenants down the road.