Need Help funding a commercial deal in Macon, Ga - Posted by Todd Shuler

Posted by Ed Garcia on July 02, 2003 at 11:32:53:


You tell us about a deal and then discredit the numbers that you have give us with out giving us any idea of what type of commercial, info on the leases, motivation of seller, why you think it could even be a good deal or how you intend to structure it to be a good deal.

Until you have an idea of what you are doing, I wouldn?t suggest for you to go to a bank. You share no information that will make a bank salivate and look as though you don?t know what you are doing.

When doing a deal, you need to do your homework before wasting a lenders or investors time. Otherwise you’ll lose creditability

Here are 18 question that will help you formulate enough information to see if this could even look like a deal.

When doing multiple units or Commercial property, there is a little ritual I go through. I ask myself 18 questions which is helpful for me to decide if I have a deal and how to structure it. I will share the 18 questions with you and after you answer them, bring them back to this forum and we will try to help you.

(1) Describe The Commercial property and the surrounding area?
(2) How old is it?
(3) tenant information ( leases, number of tenants etc)
(4) What’s the vacancy factor in the area?
(5) What is the gross income of the subject property?
(6) What is the vacancy of the subject property?
(7) What is the NOI?
(8) What are market rents in the area?
(9) Are there any other similar properties in the area for sale?
(10) If so at what Price?
(11) What are the going Cap rates in the area on this type of product?
(12) Have any other comparable properties in the area recently sold?
(13) If so at what price?
(14) How much does the seller owe on the subject property?
(15) If there is a loan, is it assumable?
(16) Will the seller carry a second?
(17) Is there any differed maintenance?
(18) If so, estimated cost of maintenance?

(19) How’s your credit?

If you answer these questions, then I can answer yours, with a meaningful answer.
Otherwise, it’s just, What ifs? or hypothetical.

Ed Garcia

Need Help funding a commercial deal in Macon, Ga - Posted by Todd Shuler

Posted by Todd Shuler on July 02, 2003 at 07:00:15:

Hope all is well. I have just found a commercial real estate property and would like your thoughts on
how to fund it.

This property is located about 75 miles south of Atlanta.
Price: $4.9M
Occupancy: 100%
Sq. Feet: 39,400
Investment: Cap Rate: 10.40% actual
Factors: Cash-on-Cash: N/A% actual
Price/ Sq. Feet: $124.37 (this is the price if this property was in
the heart of Atlanta)
Built: 1994

We have done a market analysis for this area and know that the asking price for this square footage is not realistic. Should be somewhere between $44-57/sq ft. with a top end asking price of around $2.4M

Provided that the existing tenants are happy and have longer term leases of 3-5 years (or longer) remaining, I figured that I could take the leases and some cash (??) to bank as receivables.


  1. Where could I find a lender to make this happen?
  2. How can I make a lender salivate to fund this deal?
  3. How much cash should I look to bring to the table?