How To Structure The Deal
I have contacted a group that develops medical buildings. I have found a 64,000 sq. ft. building and a group who is willing to lease the building for seven years. The owner of the building is willing to sell the building which has five acres that can be developed into a new medical building and that is why I contacted the medical development group was to use their already existing group of doctors to develop the new medical building on the site once we buy the building and undeveloped land
Here is my question?
The cost of existing building is $12,000,000. The lease is a seven year lease The cap rate is figured at 9.5. The new land should support a new medical building of around another $12,000,000 in value. The medical development group brings the investors in the form of the doctors the we can flip the deal to them.
I see a potential profit of around 5 million. How much should I ask for out of the deal as the general contractor who will build the new medical building and I put all the players together. They have the investors who can get the financing for the project and they will charge the doctors for developing the building.
Thanks Dave P
Comments(0)