Ran across this property … (long) - Posted by Andrea
Posted by Andrea on April 23, 2000 at 18:31:26:
and need input re. how to proceed.
Well, I thought it was gonna be a primo Lonnie deal (it was gonna be a gimme trailer… all I had to do was sell it and solve the landlord’s problem of not finding a renter for his lot) HOWEVER, he is now taking the attitude of burned-out landlord and wants to sell the property instead and is willing to owner finance w/ $10,000 down (total price quoted so far is $119,000) haven’t talked about interest rates yet. Don’t know whether we could refi or not… or whether we’d even want to? Numbers are proving to be the part that’s most difficult for me.
It’s about 7 acres with some hwy frontage that is unzoned so far… though the state (Montana) is currently in the process of widening the two lanes to four lanes because of the traffic increase in the last few years. It’s also about halfway between the only two cities within about two hours drive (lots of commuter traffic)
The most obvious catch is that the property may not perk for any further septic … and so may not be subdividable? It has a shop that’s half built and a set of trusses will be included to help put a roof on the part of the slab that’s not been built on yet.
Now, am I thinking wrongly? It seems like all that needs to be done is fidure out how the property can generate enough income to pay for itself (how much cushion should there be on top of that?), but the only thing that comes to mind that wouldn’t need septic is a storage facility… and that would have to be built and managed and so forth… am I getting out of the creative REI brain and making myself more work than needs be?
Basically, we’ll have about 6 acres of flat ground w/ some pine trees that isn’t suited for farming or grazing (I don’t think) w/ commercial possibilities… that’ll need to generate about $600/mo for itself. I’m assuming that the lot w/ shop will be leased at $350/mo to start and maybe $500/mo when the shop is added onto… hopefully, I’m being conservative. As far as comps…we have yet to firm up on those, but it appears that many two acre properties on the same hwy frontage w/o buildings are being offered (I know, I have to find out what they’re SELLING for) at or above the same price as this 7 acres…
Oh yeah, and where to come up with the $10,000? I’ve always thought in terms of having to HAVE the cash on hand, which I don’t… nor is there equity to draw upon; do I look for a line of credit somewhere? Do I look into mtg co’s first? How should I spend my day tomorrow? Should I go to the county clerk’s first?
We have about 10 days to hash through whatever ideas we can …the guy’s out of town till then. We have access to his brother mean while… and if memory serves, I thought he’d bought this property as a 1031 exchange in January … this is a guy w/o ‘needs’ (as I am familiar with tham anyway) so aside from removing the ‘headache of dealing’ I don’t really understand what I could do to negotiate the best results for both of us.
Enough of this rambling… if anyone is interested in taking this here newbie on and making some suggestions or posing some other ideas, I would be more than appreciative.
PS. Will Lonnie the MH, but don’t even want to count that in the equation since the note on that would be short by comparison to the property …?