help! 1st commercial opportunity - Posted by Erik

Posted by Coupon Clipper on January 28, 2008 at 11:31:33:

How much of it is leased and for how much and how long? How would you rate the soundness of the tenants?

With that kind of a building, you are buying the leases, and the building is thrown in for free. If it is not almost fully leased, you gotta ask yourself why not?

Have you verfied the actual sale prices of comparable buildings? Listing prices are pie in the sky right now.

help! 1st commercial opportunity - Posted by Erik

Posted by Erik on January 27, 2008 at 17:28:58:

I need you CRE experts to let me know if I can pull some money out of this deal:

Commercial building in busy Las Vegas location near a golf course w/ 12 offices, 4000 sq. ft. Owner wants me to assume her promisary note of $3900 a month. She owes $675,000 and that’s all she wants. Similar office buildings in this location are going for 1 to 1.2 million. Her lot also has 21 parking spots which is more than any other in the area. The estimated repairs to the building are 60 to 80 thousand. Would this be a good wholesale deal? I am not looking to do a rehabber myself, but if these numbers check out would this be a good project? I was thinking I could Option the property for the balance owed ($675,000) and then assign the contract to a commercial investor for…?
Thanks for any help.

Re: help! 1st commercial opportunity - Posted by Penny

Posted by Penny on January 28, 2008 at 14:29:24:

In addition to CC’s comments, what are the market rents for office space and what is the current vacancy for your area?