Posted by Elise on November 21, 2010 at 20:21:22:
Yeah, sorry about that I had a bunch of figures running around in my
head at the time, the math I posted was completely wrong. I did get with
a local commercial agent and we figured it out and will make a proposal
soon. Thanks for the follow up!
Wanting to Lease land that is for Sale - Posted by Elise
Posted by Elise on November 17, 2010 at 22:03:31:
I want to lease an acre of land that has no buildings, for which there is only a
sale price of just over $1M. The broker has said that the owners have never had
any inquires to lease the space and therefore have no monthly rent figured. He
asked me to come up with a rent proposal and terms. I cannot find any
comparable property in the area for rent. If they are selling at $.043/SF can I
offer the same as monthly rent (around $1,750/month)? Terms would be a two-
year lease with three to four two-year renewal options. In that ten years I would
have paid just over the purchase price, is this reasonable?
Main concern…what YOU can pay - Posted by John Merchant
Posted by John Merchant on January 06, 2011 at 15:15:46:
Because owners are getting zero rent/income now, I’d advise just concerning yourself with what YOUR needs are now, what you could justify paying, what lease or rent length (term) would best work for you, etc.
It might sound paltry and unreasonably low to you but what the heck, if it’s what YOU can justify then make an offer based on that.
When O responds then you can adjust to make the deal fit both of you but his response might be lower than you anticipate.
Late and great Barney Zick a great RE lecturer and true guru told of many deals that he’d fallen into where RE and buildings were basically just handed to him at very low or sometimes NO cost.
Doing enough RE deals you’ll see this happens, sometimes present owner is so frustrated he/she just wants out and would give title to anybody willing to take on the RE taxes and responsibilities of ownership.
A REA buddy of mine got me into one of these deals and it ended with owner of little legally besieged triplex giving me the deed free and clear; seems he’d offended everybody at city hall and all were now totally inimical to O’s plans to rehab the triplex.
Interesting that once I got into ownership and started sweet-talking City Bldg Dept guys they turned into real friends and helped me get the rehab permits w/o hassle.
Re: Wanting to Lease land that is for Sale - Posted by michaela-CA
Posted by michaela-CA on November 19, 2010 at 18:40:29:
Elise,
maybe you left out some more details?
When I just look at $ 1750/month (no interest) at 10 years - I come up with $ 210,000 , which is not close to the purchase price
Michaela