Hi Eric thanks for taking the time-location is on a very visable and busy street and currently being renovated-80% completed. But ther are no tennants yet do to construction. Building’sinsolid shape with new mechanicals. Owner says family porblems are forcing sale. My suggestion of 120K upfront was an idea i was trying to gauge to see if deal sounded good i have yet to make this low ball offer to owner yet,seeing his eagerness to sell thought i’d put out a feeler to you all and see your oppinion with how maybe to go about it thanks
hi im a newbie looking for someones onsight possibly. Ive found a comm.property nine units total, four apts. and five store fronts. Owner seems pretty negotiable still needs some work but property will bring in 5k per month. Owner is asking 300k but i know he’ll come down. Thing is how do i do it . i was thinking take out loan for 140k give him 120k up front use the other 20k for any repairs let units payoff themselves.What other creative ways are there if he dosent go for my deal???
I’d be looking at the underlying leases (short term fuses are a not a postive sign) on those units as well as taking a hard (very hard) look at the tenants and the deferred maintenance.
How did you come up with these numbers? Were they verified in any way? Got a curent rent roll? How about your vacancy rate? Demographics? Physical location? Local trends? Competition (for the center as well as for the tenants)?
Hey, this is just the start.
I’m with the other posters, this could be the beginning of a good deal, but more likely there are some (maybe quite a few) pieces missing from the puzzle here.
Am I understanding you correctly. You are going to offer him 120,000 for a property that nets 5,000 per month. You are going to borrow $140,000 and use $20,000 for repairs.
I suspect we have some rather significant elements missing in this picture.
If not I will pay you $50,000 to assign the contract to me. You can walk away with a lot of cash for lillte work.
What happened to the remaining $180,000 of seller’s equity?
It’s a waste of time to put together offers without finding out what the seller is trying to accomplish by selling. If you really, really, really need to make this offer, meet with the seller and listen to what he has to say. He may be of assistance.
There are hundreds of ideas that may be of help in the archives.