Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 1 year ago, 05/11/2023
Need Help and Advice - DEC Contamination Record and Owner Financing Opportunity
There is a 10+ unit building that was under contract and the deal fell through due to DEC records of soil contamination from a previous nearby gas station leak. The owner of the property has had it for over 30 years and owns it outright. I have several questions that I am seeking guidance on.
1 - what type of company would one call to determine how long organic soil remediation typically takes before you can get certified (quick internet search says 20-30 years but want to confirm that with a professional)
2- who would one call to assess the situation and provide remediation options/scope/timelines/costs?
3- the owner is willing to hold financing with the newly found information and I am a proponent of "your price and my terms or my price and your terms" but I am seeking some guidance on shaping this deal so we can both walk away feeling like a winner (especially knowing a bank will not finance the property with DEC certification of soil remediation)
4- there are no comps that could be used for the property so I am assessing it like a business, purely off of cost and income basis which plays back into the "how to shape the deal" advice I am seeking. I would like to ensure I am paying a fair price for whatever terms are presented and am seeking someone's advice here. Revenue of 106k annually but landlord pays all utilities. Taxes of 9k annually, updates needed to the interior of the units (aesthetic not functional), assuming 5% maintenance, 5% cap ex, 3% vacancy, 8% property management, 3k annually for insurance, pending utility costs, pending garbage costs, pending snow removal costs. There is no parking lot but year-round parking is allowed on the main street and this is walking distance to a top 100 liberal arts colleges with an annual tuition of over 70k per year drawing in residents that often rent off campus due to their family's financial situation allowing for such.
If you are well credentialed I would even explore paying you for an hour of conversation to help but would need examples of said credentials to warrant that. I am open to all feedback and advice or any direction that may be able to be provided and would welcome a call, email string, private messages etc.