OfflineOkay, I signed up for DG's Success Academy 19 days ago, and I might have a possible first deal. It's a commercial property, which I never thought would be my first deal. Here's the details...
Commercial Property in a Downtown Area. 1 Block from the court house. Found out that the area is a huge revitalization area. Plans to have it completed in the next 4 years.
Property is multi-use. Upstairs, 4300 sq ft of office space. 7 offices (350 sq ft each) with a huge foyer. 3 bathrooms total.
Downstairs, 2200 sq ft retail space currently being used as a pawn shop. Rent way below market at $1k per month. Month to month lease.
3300 sq ft retail space. Possible renter lined up, will become pool hall. Will pay $2k for first 6 mos. Once building is upgraded renter will renegotiate rent to reflect FMV rent.
According to local commercial RE agent (I called one), rent is $2.00 to $14.00 per sq ft.
Owner is 72 years, very sick and wants to unload property. First mortgage $220K at 15 year fixed 7.75% interest. Second, $70k and in foreclosure. Owner asking $525K. Apparently, in December 2008, the owner had the property appraised. It appraised for $1 Million.
What do you all think? Any suggestions or pit falls I should look for? I will assign this deal.
KimmyJ
aka The Mad Real Estate Investor
sounds exciting! Do you have interested buyers at this time?
Hopefully this will be your first great deal! I wish you well.
Since the coaching staff is walking you through this, I know you have all your bases covered.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
I have a very small buyer's list, but I am going to my first REI Club tonight, and I am going to see if there are any investors who are interested before I go locking up the property.
Great Job KimmyJ..Keep us posted.
Wayne
"The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." — Peter F. Drucker
Kimmy I have missed out on two great deals in the last 3 months because I did not act fast enough. This property sounds like it has a half million dollars in instant equity! You could lock it up under contract or you could lease with the option to buy..... Sounds like a great deal. Let me know what state you are in via email. I may have some investors that would purchase the contract from you.
[email protected]
Will you help educate us and tell us how you found this deal?
I'm working on the deal as we speak. Making sure what the owner said is true. This deal fell in my lap. About 2 or 3 months ago, I posted an ad on Craigslist. It said something like "Investors Wanted." Well, the owner called me yesterday regarding the property. I was surprised because I hadn't posted on CL in awhile.