Posted by Ed Wachsman on December 06, 1998 at 04:25:51:
Based on the very little information you provide (You don’t say what kind of income it produces, what the demand for commercial space is, what your intentions for the property are, what kind of tenant it will attract, how long you think it will take to rent, how strong you are financially, etc.) it is impossible to give you solid advice but I suspect that this is something you should pass on unless you are absolutely certain that the fair market value of this property is worth at least $100,000 more than the asking price and/or the lease option terms are extremely favorable to you relative to the income producing potential and market value of the property.
Though owner carryback and lease option are terms that suggest the possibility of a seller with motivation, they also may be suggesting a savvy pro with good marketing skills and a flexible approach to doing business.
Commercial is usually a very dangerous place for a beginner to start unless it is an absolute no-brainer steal that can be flipped immediately.