FINANCING A COMMERCIAL BUILDING - Posted by JOANNE HAWKINS

Posted by JohnBoy on December 02, 2000 at 23:16:59:

You said you had tenants willing to lease the commercial spaces on the first floor that would bring in $4k per month. Would they all be willing to sign long term leases with a minimum of 5 years? Will they lease as a NNN (triple net lease)? Could you get first, last and one month security deposit from each tenant? On a total rental income of $4k between them, that would get $12k up front from the tenants. If you could get that from the tenants could you come up with the difference to at least get them in the building? Would your contractor work with you on that? If you don’t have the cash on hand, could borrow it from somewhere? Any credit cards you could use?

FINANCING A COMMERCIAL BUILDING - Posted by JOANNE HAWKINS

Posted by JOANNE HAWKINS on December 01, 2000 at 23:01:23:

I CURRENTLY AM LOOKING TO BUY AN OLDER TWO STORY BUILDING IN DOWNTOWN WICHITA FALLS, TX. THE BUILDING IS A GENEROUS 15000 SQ. FT. AND HAS 3 LARGE,SEPARATED BUSINESS SPACES AVAILABLE. I AM LOOKING AT AN ASKING PRICE OF $75,000, BUT THE BUILDING COULD USE ANOTHER $75,000 TO MAKE IMPROVEMENTS, AND MAKE THE SECOND FLOOR COMPLETELY CODED FOR ASSEMBLY. I HAVE THREE BUSINESSES INTERESTED IN GOING INTO THE BUILDING THAT WOULD GENERATE OVER $4000 IN USABLE INCOME IMMEDIATELY. HOW DO I LOCATE AN INVESTOR. TOO MUCH POTENTIAL TO PASS UP. THE DOWNTOWN AREA IS STARTING TO GROW, AND WICHITA FALLS IS A MAJOR TARGET AREA FOR NEW BUSINESS AND LARGE GROWTH. WITH IMPROVEMENTS AND EXPECTED PROPERTY VALUE INCREASES, THE BUILDING WILL INCREASE IN VALUE BY NEARLY $200,000 IN THE NEXT TWO YEARS. I NEED HELP IN A HURRY!!

Re: FINANCING A COMMERCIAL BUILDING - Posted by JohnBoy

Posted by JohnBoy on December 02, 2000 at 20:15:33:

Would you need to put the $75k into the building before the tenants you have for the commercial spaces occupy them, or is that mostly for the second floor?

If you need to do anything on the first floor before the tenants could occupy those spaces, how much would you need to take care of that to get them in their right away?

Also, turn off your CAPS, it makes it harder to read and is considered YELLING on the net.

Re: FINANCING A COMMERCIAL BUILDING - Posted by Joanne Hawkins

Posted by Joanne Hawkins on December 02, 2000 at 22:49:28:

The lagest portion of the $75,000 is for the second floor. I would need $25,000 to redo electrical, and improve the plumbing and AC units. If I could do that much, I have a contractor friend who might work with me on the 2nd floor.