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Updated almost 10 years ago,
First Commercial Deal - Numbers are disgusting!
I'm looking at a Commercial 3 story. The numbers that were supplied from the selling agent are SOOOOOO bad that I cannot even guestimate what the heck this seller has going on. It seems to be a ton of fluffing on the incomes and hindering on the expenses. To the point I might just walk away without even getting any further info.
Their asking price ($750k) is about $200k-$300k too much in my short calculations, which I cannot even get accurate due to the crap numbers I was given... Even his pro forma shows all the rents fluffed and all the expenses the same (and unreasonable) as his actual.
The tenants are a cafe, bar and nightclub, which might not be the best tenants as it is...and who knows if the current owner would even entertain such a low offer as the property is probably worth that cost alone....
Would seasoned investors walk away or try and get more info?
Thanks,
Johnny