newbie question: flipping commercial property... - Posted by j1

Posted by Donald on June 08, 2002 at 05:56:09:


my 2 cents

Forget the sellers asking price.

Are you telling me that this is a vacant building, way out in the ‘boon docks’, that is zoned commercial?

Maybe the ‘highest and best’ use is not commercial but, say, an apartment complex.

1… check with county tax office for their assesement value (usally way off)
2… start researching for sales and listing of every type of property (to include raw land) that is located in the area.
3…Rent roll—What is the estimated Gross Rent that it could produce if it was rehabed and rented out?

Key point here—if it is a ‘money maker’ WHY WOULD HE/SHE WANT TO SELL IT?
my 2 cents

newbie question: flipping commercial property… - Posted by j1

Posted by j1 on June 07, 2002 at 01:54:34:

Is it hard for a newbie to try to flip a commercial property? What are some of the do’s and don’ts?

It’s a small 2 story office building, looks old and in need of exterior work. (i haven’t seen the inside yet)
How would I get money for commerical RE?

more questions - Posted by Donald

Posted by Donald on June 08, 2002 at 06:09:53:


1…What does the seller want for it?

2…How did he determine his price?

3…What are you going to do with it?

4…Will he take a lease/option, for one year. for, say, $50 a month?

5…Does he have a lien on it?

6…What will it cost to fix it up?


FMV - Posted by Donald

Posted by Donald on June 07, 2002 at 04:47:45:


my 2 cents

1…What will it appraise for ‘as is’ and what will be the FMV after it is rehabed? Give us some numbers here.

2…What do they want for it and will they owner finance?

3…Will they take an option?

4…Why do they want to sell?–KEY QUESTION HERE! (their problems will become your problems)

5…What is highest and best use for this building and location? (ie. apartment unit, gas station, car lot, barber shop, tattoo parlor, what?)

My 2 cents

Re: FMV - Posted by J1

Posted by J1 on June 07, 2002 at 11:39:19:

how do i get fmv, when there aren’t any similar buildings in the neighborhood for miles and miles…?

is there a good way to figure this out
without relying on the seller’s rough estimate?