Commercial Property Offer (by Johnny B. [MA]) Feb 21, 2019 10:43 AM
Commercial Property Offer (by Still Learning [NH]) Feb 21, 2019 12:13 PM
Commercial Property Offer (by Still Learning [NH]) Feb 21, 2019 12:26 PM
Commercial Property Offer (by Robert J [CA]) Feb 21, 2019 1:23 PM
Commercial Property Offer (by Live The Dream [AZ]) Feb 21, 2019 1:51 PM
Commercial Property Offer (by Steve [MA]) Feb 21, 2019 1:59 PM
Commercial Property Offer (by RentsDue [MA]) Feb 21, 2019 2:26 PM
Commercial Property Offer (by Johnny B. [MA]) Feb 22, 2019 4:18 AM
Commercial Property Offer (by Steve [MA]) Feb 22, 2019 4:36 AM
Commercial Property Offer (by Johnny B. [MA]) Posted on: Feb 21, 2019 10:43 AM Message:
In general is there any specific language or contingencies that are a good idea to add to a offer to purchase a residential building that would require commercial financing? I’m looking for any major differences between an offer to purchase a building with residential financing versus commercial financing. --24.147.xx.xxx |
Commercial Property Offer (by Still Learning [NH]) Posted on: Feb 21, 2019 12:13 PM Message:
My mother in law was our real estate agent and saved us money and headache on our first purchase. Her clauses were that the tenants being evicted needed to be out with any vacant units made “rental ready”. The closing was delayed by about 5 months because the previous owner insisted on doing the eviction themselves instead of hiring a lawyer. The tenant being evicted worked for the courts and new all the delay tactics. Code enforcement was brought in and a new deck was built as well. --24.61.xxx.xx |
Commercial Property Offer (by Still Learning [NH]) Posted on: Feb 21, 2019 12:26 PM Message:
Seller to correct any violations they receive from the city, government or utility agency prior to closing. Seller to renovate any and all vacancies so that the day of closing, any and all vacancies are repaired, painted, cleaned and ready for occupancy. All rents to be current prior to closing. Access to vacant unit after buyers financing contingency is met for the purpose of acquiring a tenant. Subject to 100% bank appraisal of purchase price. Subject to buyers viewing all units not yet seen by x date. Subject to stated security deposits being transferred at closing to buyers (this was added after first closing where things went sideways because landlord let all tenants use deposit for rent the month before closing). Seller must maintain property in responsible and diligent manner until date of closing. Buyer requests copies of all lease agreements for current tenants. These were clauses used on buildings with 5-8 units. --24.61.xxx.xx |
Commercial Property Offer (by Robert J [CA]) Posted on: Feb 21, 2019 1:23 PM Message:
To buy a commercial property cheep, it has to have issues. Like bad tenants and poor inside condition. If the tenant is to be out by the close of escrow, then any improvements i put into the property will have to be added to the basis and can not be deducted or depreciated.
So if each unit has a low paying tenant with deferred maintenance, I offer a purchase price that reflects that cost. Instead of having a 10 unit vacant property, I get rid of one tenant, the fix it up and re-rent it -- enjoying the ability to write off my improvement expenses. Within the 12 months of ownership I can re-hab the building at my pace. --47.156.xx.xx |
Commercial Property Offer (by Live The Dream [AZ]) Posted on: Feb 21, 2019 1:51 PM Message:
I've only bought one, but no loan and it was a foreclosure so it was no different than anything else. If you are paying retail you might expect the seller to do fix up, but not ehen paying 20 cents on the dollar. --47.216.xx.xxx |
Commercial Property Offer (by Steve [MA]) Posted on: Feb 21, 2019 1:59 PM Message:
Johnny B, if you're going next Tuesday this would be a good question to ask the entire group. --96.237.xx.xx |
Commercial Property Offer (by RentsDue [MA]) Posted on: Feb 21, 2019 2:26 PM Message:
I’m with Robert on this one. The only way to get a good deal is to get one that needs love. Cash with no contingency and a price to match. --71.10.xxx.xxx |
Commercial Property Offer (by Johnny B. [MA]) Posted on: Feb 22, 2019 4:18 AM Message:
Good feedback, thanks everyone. Steve - I’ll see you Tuesday. --24.147.xx.xxx |
Commercial Property Offer (by Steve [MA]) Posted on: Feb 22, 2019 4:36 AM Message:
Johnny see you for pizza night. --96.237.xx.xx |
Reply:
|
|