Show Me The Money!!! Part 2
Here's the update:
I still have no documentation to conclude if it's a good deal or not.
I did have a colleague go by the property though, the area is great, the building is run down. I would have to hire a contractor to renovate the building. The problem is I don't have the capital to carry the loan through renovation if it's not producing any revenue. What would you guys do?
Whenever you get a rehab loan you can set it up to either start payments after a certain date, or borrow enough to make the payments while under rehab. You will need to make a rough business plan or executive summary, detailing what you will be doing and the length of time it will take to do each part. Let us know when you get the numbers, curiousity is getting the best of me.
Kyle
I agree with Kyle either borrow enough to make the payments while it is being renovated or get the payments defered until the rehab is finished. But I have a question have you ever invested in commercial property before? If not you have to understand this is a totally different area from residential with much different rules.
No I have no invested in Commercial property before. Also I have never invested in residential property.
Sure I don't have all the answers right now. That's why I'm on this board. Sometimes to be a success you have to take risk, that's what I'm doing.
I do however realize in any business if you can find something at the right price to create value when you buy it you can find ways to make it work. I wise saying I once heard was "I would buy a battleship 1,000 miles from water if it was at the right price."
Kyle...thanks for the response....I'll let you know as soon as I get the numbers, that is if they release them. Thanks in advance.
Mostly you need to get the numbers. Have you figured out what you have to do to be "qualified"?
I have not gone through what it would take me to be qualified. How should I go about doing that?
I went to the property this past weekend when I get a few extra minutes I'll fill everyone in on what I found.
Thanks
Most of the time they just want your name and address and some hint that you know what you are doing and are not some newbie wasting their time.
Sorry this has taken so long but just wanted to inform everybody where this ended up.
I finally had a chance to visit the property myself and in my oppinion it wasn't worth what they were asking for it. Specifically I didn't even like the layout of the building.
Another reason I didn't go forward with this deal was the owners were not willing to provide the appropriate documentation to allow me to analyze the property. This to me was a sure sign they were trying to hide something.
I may have missed out on one deal, maybe but doubt it, but on one of this magnitude I would rather be sure.
Wish you all the best of luck and the next one that comes across my table I will let you know.