Help with construction of an offer...

[James Starks]

Hello everyone. I am a new member and this is my first post.

I am considering making an offer on a self service car wash property in my local market. The property was originally listed at $595K and has been dropped a couple of times to $295K. The listing agent informed me that the bank has taken possession of the property within the last week.

The NOI is approximately $30K; includes a lease of one bay to an emmissions facility. I believe the value of the property to be $225-$300 less $25-$50 in repairs, maintenance,and updates. I realize these are wide ranges. As a first time investor, I am hoping to get some help in constructing a deal.

I want to offer $225K with $50K cash out at closing; netting the bank $175K. However, I don't want to go in so low that the bank doesn't even counter if they chose not to accept.

The offer would be subject to current bank approval of financing with no money down.

Should I wait and see if the bank reprices the listing?

I figure the property has been on the market for quite some time and no bank wants to be in the business of keeping up a cash wash.