Do not wear Kiddie Gloves: FIRST POST

[Jonathan J.]

Never in a billion years would I have thought my first post would be in the COMMERCIAL section. That said, I am a newbie and looking for wisdom on an "observatory deal" which I am interested in. I don't have the funds to commit to it so I wanted to know what all of my mentors think (if you are reading this and apart of BP you are a mentor and just do not know it yet.)

That said don't wear kiddie gloves when responding lol. :cool:

So here it is:

I ran across an owner who has a 32 unit property (22 studios), near Arizona State University, highly visible commercial area-- wants to sell for betwen $1.4-$1.5 million.

SPECS:
Each unit has large living quarters, 3 bedroom, 2 bath, living room, and each unit has separate entrance. Property is next to newly built lightrail, mall & shopping closeby.

SELLERS MOTIVATION:
Owner is absentee and wants to sell at favorable terms/owner finance. Says he will consider lease options. And by the way, like every other newbie here lease options is my preferred way of investing and I am close to locking in my first of 2 deals. (Financeexaminers posts REALLY helped me with questions which I had, as well as Brian Gibbons and Wendy Pattons free youtube videos).

OFFER MADE SO FAR BY A BUYER:
Seller/Owner told me another buyer made an offer for: $1.5m for property, owner would carry note for 10 year balloon at 6.5% with buyer putting down 300-350k. Seller says he was considering it but open to other offers.

Also says a large retail chain (holiday i--,) has expressed interest in setting up a franchised location there. Project costs 6 million and he is not ready to finance it, but interested in other less costly franchisee oppty's with an investor as possible working partner.

Owner is flexible and motivated.

MY NEWBIE AND PROBABLY ROOKIE IDEA
My idea is to contract, then flip and assign to a retail developer. Quick call to PM company (learned this from a fellow bp member) told me market rent in Scottsdale and Tempe, and AZ investors please do chime in and correct me if I am wrong or misquoted, has 3 bedroom 2ba units at around $1100

Reality is, I am a newbie and ready to hear what the BP members have to say about this. Even if I can pass this deal on to another member and learn from what you would do, in regard to owner financing in a commercial real estate environment; I WILL BE GRATEFUL.

I receive lots of commercial offers from just pounding the pavement and asking around. I am located in NY and not looking to "play around" or "dabble without putting skin in the game" with CRE. I am not liquid for this particular deal (no money down wont fly with CRE deals I am learning) but still want to know opinions from my fellow bp members.

Remember guys and gals, gloves off and give it to me straight; why the deal WON'T work or why deal MAY work. I LIVE IN NY AND CALL FSBO ALL DAY SO IM A BIG BOY WHO CAN TAKE IT, lol. I WILL BE BETTER FOR THE EXPERIENCE.

Shoot away, I am here to learn and grow in years to come here on BP...........

ps: sorry Josh I know this is the longest post ever.