Need help- office building purchase! - Posted by Kay (Indiana)
Posted by Kay (Indiana) on April 04, 2007 at 16:54:23:
I am looking for advice on what to do regarding the possible purchase of a small office building in my town.
The property is listed at $99,900, but I know I can get it for around $85K. The owners have had it on the market for 2 years with no luck. They had it listed with a Realtor, but now they’re preparing to put out FSBO signs.
I am looking to get it for my own use, and I wanted to know how I should approach them with an offer. They said they would be open to considering a land contract (they bought it on land contract with a balloon after 3 years), but I want to make sure I handle it correctly.
I can’t come up with a lot of cash to put down on it, and one idea was to ask them if I could just take over their payments until I could get my own financing down the road.
They’re ready to wind things down and retire, and I’m hoping the fact that I’m young, with a young family will motivate them to want to work with me.
The office building is small (just perfect for what I need it for), and has some desks, dividers, tables, etc. that I wouldn’t mind having included with the property, as well.
Here are the numbers…
Possible purchase price: $80-90K
Electric: 135/mo. (all electric)
Prop. taxes: 2232.52/year
I have no idea how much they would want down, but I’m hoping I can weasel into not putting much down at all. My thinking is that they would love to just be done with it, allow someone they trust to take it over, and so on.
I had also considered, if I get it, leasing it to my corporation for tax purposes. Not sure if this can be done if buying on land contract, but it was a thought.
Will someone please help me?