If you have something I want then thats one thing.
If you have something I need, well thats an entirely different story.
I would talk to the other owners and see what kind of offer they have, To have a property that grosses $1300 a month that you would consider selling for 95,000 (that means you paid a fair bit less) seems like a very attractive rental property.
Then again, maybe you are getting tired of being a babysitter at your “rooimg house”.
Let us know what you find out - this could be interesting.
I have a rental property (a rooming house) that I get about $1300/month in positive cash flow out of.
I’ve been contacted by a real estate developer and they want to buy my property, as well as everything else on the block. I gave them a price off the top of my head as to what I would sell the property for, and now think I may have been able to go with a higher price. There is no offer to purchase yet and I guess I can always change the asking price.
The question is, should I hold out on selling the property to get “top dollar”, or should I take my money and run (about $95,000 if the deal goes through)? I’ve heard there might either be a Walmart or Aldi’s going up there.
Re: Developer wants to buy me out - Posted by rudy-austin
Posted by rudy-austin on February 05, 2000 at 13:41:18:
Check with other commercial brokers and see if they have any knowledge of this developer’s buyer or use and then ask the most knowledgeable one to negotiate for you for a flat fee…rudy
Re: Developer wants to buy me out - Posted by ScottE
Posted by ScottE on February 05, 2000 at 13:11:22:
Brian,
Have you talked with the owners of the properties adjacent yours? If the company wants to use the whole block and they have already closed on purchases of adjacent properties, you could be holding a fine set of cards. Depending on your location within the block, you could stand in the way of their project (unless it’s a government project). I would imagine a Wal-Mart or the like would be willing to fork out a few more dollars to get you bought out and get their project rolling.
If they give you a hard time about changing your price to a MUCH higher figure, tell them that you talked to your lawyer/accountant/RE agent and based on your income you came up with a value of $XXX,xxx. Most folks don’t like you bringing ‘third basemen’ in to help you on your deal!
Using the mindset of the first person to name a price is in a weaker position I would want them to make an offer first. If it is something like WalMart make them pay.
This is just from my view, but I would sell to a “fellow” investor for much less than I would to someplace like WalMart just because I am not too crazy about another WalMart Supercenter sprouting up in my area.
Re: Developer wants to buy me out - Posted by Russell
Posted by Russell on February 05, 2000 at 09:33:06:
Brian,
Here’s an angle you might take, just food for thought: $1300/month for 10 years = $156,000, you might go with a higher figure like this with the justification of lost income on the property, not to mention any tax benefits, asset appreciation, etc. I’m new in this field, but it seems like you should get more (and it’s worth more) to me. $156,000 or even twice that is chump change to multimillion projects involving large corporations / entire blocks.