How To Make A Deal
I found a commercial property (16 acres of land with a medium size Gas station). The appraised value for both land and gas station is 1.5 million dollars. Motivated seller is willing to take $900,000 offer. But I do not have enough money. So, I talk to the seller who is willing to take $400,000 in Cash right now and $500,000 in 3 years time. I have about $30,000 in my account right now. How can I make this deal work??? Please help!!!
Reply as soon as possible.
Thanks,
Mohan
Before trying to make the deal work, I'd double and triple check that the gas station is up to the latest epa regs. That could kill your deal real quick. I've seen too many stations close down because replacing the tanks was too costly.
has seller done a Phase I environmental review of the property? Old gas stations are bad polluters and will really limit what can ever be done with the property in the future. If it is contaiminated you can try and incorporate it into the brownfields program here in GA but it is a time consuming process. Also, have you looked at cash flow, NOI, etc.? Before you get into how to finance the deal I would make sure you even have a deal. Without the environmental review and analysizing the books it is hard to tell if any of your referenced purchse prices will be realistic.[ Edited by woodsong on Date 10/06/2004 ]