Commercial?
Looking for direction here. If there is someone on this board that has all around real estate experience I would love to here what you have to say. I own, manage and repair a few multiple family homes. I am looking for more profit. Is there more profit in land, land developement, strip malls, office buildings or apartment buildings? I know each deal is different but which in general would be most profitable. My deal price range would be up to 2M. I want to focus my effort where the payoff is best. Thanks in advance!
I have good knowledge in all area of the market. All can be profitable depending on location, prize, and timing, which equals how long before you get your expected return. If you’re patience and with the right funding, knowledge, and planning, land development can be very profitable. I definitely know buildings are more lucrative, whether land development, apartment buildings, residential, or strip malls. Again, the main issues are location, timing, planning, and resources.
I just reread my post and let me clarify-
The house cannot be moved. When I said I would not wait to move it I meant in the hypothetical sense. In this instance this particular house cannot be moved so it is a mute point.
Yeah, I agree with you Woodsong. The added information that the house is on a slab changes everything. In essence this property is worth the value of the land minus the cost to demolish the house.
Then you could rent it out and hope for the best knowing that if something did come up you could demo the house and build a new one without this problem. Even that assumes that the lot is big enough to build someplace else without encroaching on the utility easement.
Networking is key but you can do that for free ! I am a realtor in Austin Texas a lot of CA investors buy hear for obvious reasons. You need to have relationship with you r property managers and realtors in another state but doing multiple states is not impossible. I have a couple of deals you might be interested in.
having been in the business I am leary of guys that show you a closing statement of the buy and the sales price at the end. Too much room for murkiness in there.
REcently was in a project that was bought at 90K and sold at 170K. Holding costs and repairs 33K, realtor fees6K etc. not shown in there along with the 10% carryback that took place to make the deal work that may never be seen or realized.
Join your local club, network, and use their title,mortgaqge people etc.
[addsig]
Greetings,
You will first need to fill out the Loan Project request form. This is for serious investors ONLY.
http://www.thecreativeinvestor.com/commercial/modules.php?name=LenderFinder&op=loanprojects
In order to get a complete package to our lenders, you will need to provide documentation about the property, proformas, photos, and personal financial statement.
Brian will be back in on Wednesday to help you the rest of the way.
Happy Investing.
Not sure I understand why you want to do this. Can you elaborate a little as to why? Do you own the other location? Do you have clean Phase 1 environmentals on both properties?
Nancy
Thanks " Commercial King" I know you are right about the cost of the dirt. Most of these excavation contractors get rich by being paid to remove the dirt and then charging nearly the same amount to deliver ! Smart on their part! If I can eliminate the charge to deliver, then I am way ahead.
Nancy,
Thanks for that advice.
This is how I structured the counter.
$50,000 earnest money that goes hard after 90 days. Then we will extend the due diligence time 30 days at a pop for an additional 50K each time that also goes hard after each 30 day period. This will ensure that these guys are serious....that is, if they accept the counter.
Hi Nancy
As an investor I would always make sure that the contract was assignable....No exceptions. And I would have no problem putting 3% down non refundable.
I do a number of smaller deals these days with 10-15K non refundable balance due in 120 days immediate aqccess to property and ability to market and flip assign, etc.
I would agree to a kick out clause if it meant I received my down back upon sale to another buyer
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Nancy,
You are absolutely correct. The "buyer" declined to accept the counter. He was only attempting to tie it up indefinitely. Back to square one...
I had a meeting yesterday with a Commissioner for the Tennessee Wildlife Resources. They are having an annual meeting today and tomorrow. He thinks they will make an offer on the property. In the long run, to leave the property as is would be the highest/best use for it.