I’d be wanting to find out why this property is selling for only $55k when it’s bringing in $1600+ per month???
What type of businesses have been on the property in the past? Is their a ground contamination issue or something that needs to be dealt with? That seems like one heck of a low price for the income it throws off!
I would definitely get the property inspected.
I’d get the thing tied up under contract subject to doing all your due diligence on the property. If this thing checks out on everything you can’t steal in slow motion!
Why are they selling? How long has it been on the market? Is there something they’re not telling you about this?
I visited a quadplex yesterday in Philadelphia, PA. The monthly rents for all four units are $1695 gross, however, three of the four units are rented. The 1st unit is a storefront They are asking $55k but I plan to make them a lower offer. The building looks decent and in OK shape (although my eye is not trained like that of a home inspector). How much of a lower offer should I make for an “all cash deal”? I’m pre-approved for this loan so I’m pitching all cash even though the lender will have a check at settlement.
What steps do I take once I figure out my offer price? Do I have to get the property inspected before making the offer? How should the offer letter look as well as the terms in the offer letter?
The real-estate agent will fax me the comps today and I told her I’ll send her the offer letter once I’ve received the comps.
Re: Need help with an offer letter!!! URGENT!!! - Posted by Janice (OR)
Posted by Janice (OR) on July 31, 2001 at 11:08:07:
Hi Ron,
It sure sounds like a good deal financially. I would make the offer contingent upon your approval of a dryrot inspection, which would be done after your offer is accepted. If it turns up too much you can back out and get your earnest money back. You need to decide if you want the seller to pay for the report. I wouldn’t get the inspection first because you don’t know if they will accept what you’re willing to pay yet. If the property is listed why not have another agent write it up. The seller has already agreed to pay commissions so they will pay for your representation. As for offer amount, I would offer full price, just because we never see such low prices here in Portland and I would want to take it off the market, but I understand your wanting to get it for as little as you can. Just a few thoughts.
Good Luck,
Janice
You may want to check wit your lender to see how they classify mixed-use properties. Also what are the expenses of the property here, what is the crime rate, etc. How much parking is there for the store? This may turn out just to be a big vacancy. Make sure you check these things out.