Land/Commercial Building
Hi, I was looking for some suggestions and or guidance on a project. I have an interest in piece of commercial/industrial land. However, I dont have the necessary funds to purchase this land unless I am creative. The land is approximately 10 acres with about 1200 SqFt Road Frontage on a major road. Only 5-6 acres is buildable. The land is $300K. I wanted to purchase the land and put up a large steel building to have my shop in and rent out the other bays to help offset the mortgage and land loan. I am new to all this and dont know if I can do this.
My second option is to try and buy the land and sit on it for a while, the land only 1 mile down the road is already going for $450K/Acre so its coming this way. I really want the land but dont see how I can make it happen. Any suggestions would be greatly appreciated. Thanks.
IP,
Thanks for the info. I will try that. As for the land there is only 5 acres buildable, as there is a river running through a portion of it, and the Public Service Company has power lines running though it as well. It was already approved for an RV sales place with a massive steel building. There is also a gravel pit inside loaded with sand.
I just dipped into commercial this year. Financing was much more difficult than Residential. So if you have to do this, throughly check into it.
Large expenses that I saw included capital maintenance and improvements. (i.e. new AC units, new boilers, roof, etc). Talk to the tenant in the café, see if there are any problems. You will also have to pay for electric in common areas such as store front lighting and lighting around the storage units.
Check out the Insurance required by Landlord for the cafe and the parking area. Ask the seller to show you the existing policy. The cafe owner should have his own policy,check the coverage he has. You may have to assume part of the cafe liability As a hole storage is a good business but like any business you got to know something about it to run it.
Hi Midnite,
If your serious about the storage biz, there are 3 trade assn & 3 biz mags. on this industry. this will help you in building your knowledge & what the ratios are,regarding this biz. The mags. come out monthly, the trade assn. are a great places to learn the biz. the right way & asking the right Q & A you should have asked 1st. Just a suggestion ! Mark
Thanks Mark. What are the names of the organization. Thanks!