Commerc. Prop / Leased Land

Comments(6)

• 
  concrete19th September, 2003

  I've been looking into doing this also. My reason is the location. The drawback is I can't keep the building, but revenues will still more than pay me back for that. It works for me.

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  mussetter19th September, 2003

  It doesn't sound so much like a MH because you can pull that out. I would say that it sounds more like a condominium.
  
  I owned a property that sat on top of another property. (I owned the 2nd and 3rd floors.) It wasn't a problem. The deeds spelled out who was responsible for what. I was resp. for the roof and they were resp. to make services available. (water, sewer, elec, phone)
  
  However, I do not see how the land could be a problem. Almost certainly there would be a clause that allows you an 'easement?'
  
  You should not be able to be restricted from access to your building. I would think that the land lease would be separate. Can you give us some more info?
  
  Why would the land come into play?
  
  Maybe I'm just being dense.
  
  Ronnie
  [addsig]

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  GFous20th September, 2003

  I am a broker and have a commerical property listed that the seller said he would lease to the right tenant ( It is vacant land). The reason he would do this is to get the cash flow with out paying the capital gains. The reason the buyer wold do it is so that he can put the money into the improvements. I have not done the deal but can see, as a developer,some strong advantage
  [addsig]

• 
  mussetter22nd September, 2003

  Coool.
  
  
  [addsig]

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  dickknox22nd September, 2003

  The trap lies in the details of the lease agreement. You dont own the land and thus you probbly wont benefit from appreciation. Further - depending on the lease - the owner of the land can raise the rent enough to absorb the value of your building when you sell. Be wary of a clause that lets him make a big raise in the rent when you sell - it steals all your equity in the building. $100 more per month subtracts about $10,000 from the value of your building.

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  investorB22nd September, 2003

  Thanks for that last one; that is something I wouldn't have thought of.
  Best,
  Brian