newbie needs help commerical property flipping - Posted by C.J.

Posted by dewCO on November 05, 2000 at 18:56:24:

part of this forum.

newbie needs help commerical property flipping - Posted by C.J.

Posted by C.J. on November 05, 2000 at 04:37:29:

First I’d like to thank in advance all who help those in need.I’ve written before and recieved great help.So here goes again.While looking a piece of propety last week I ran across by chance an older invester who’s retiring and moving south . He stated to me, he is selling all of his commercial propeties ie: Apartment Bldgs. and some store fronts.Mainly I am concearned with the Apt. Bldgs. They are all of the larger variety.Of which fall between the 39-56 suite range.He has done no advertising as of yet.So they are only on the market through word of mouth.His to mine. In our conversation he gave me the asking price and addresses. Obviously the price ranged from 1/4 mil. to 3/4 mil.He also stated that if the buyer(s) could take care of what he has into them he’d be flexible with terms on the remainder.In addition if again the buyer(s) bought as a package he’d consider discounting even further.Normaly with residentials I’d run a search(to recieve loan bal./liens etc.) then a comp and finally subtract any work needed.My title co.ask $200-250. for each comm. search. Should I ask him for info re;loan bal./what he has into them?Is there another way of finding this info? No work needs to be done. What other relavent info do I need from him to progress and market effectively. So as not to seem so new to the sharks whom might be intrested. They are near capicty or full.Obviously ,if I could find buyers for these I’d make a nice CHUNK for myself.Being a newbie I would like to to stucture these deals accuratly.I know this might seem obvious to those who have been here.But I just got here.I appreciate any and all help.Anyone intrested in Apt. bldg’s???

Re: newbie needs help commerical property flipping - Posted by ray@lcorn

Posted by ray@lcorn on November 05, 2000 at 21:23:14:


I generally get the information you’re looking for doing my own title search in the courthouse. Loan info, liens, tax assessed value, even last price paid, are available in our deed records. Can’t imagine paying a title company to do such basic research, but I’ve heard third hand that there are localities that restrict access to the records. I’d have to try playing paralegal for a day just to see if I could get in, or maybe some minor graft! (just kidding) Asking the owner is an option, but be prepared for vague answers.

Relevant information to start with includes actual operating numbers for two or three years. I have an article posted in the How-To section of this site regarding the analysis of commercial properties and how to perform due diligence. That will give you a guide to the pertinent research to conduct.

Once you have more information, do post it to the Commercial newsgroup. In fact there is a current discussion on the board right now about evaluating a small muilti-family deal. We’ve got several folks that frequent the board with very deep experience in everything from ownership to finance that will be glad to comment on and analyze your deal. Click on the Commercial Newsgroup on the menu at the top left of this site.

Good luck!