Commerical Deal Analysis (Beginner)

[Ray Bansel]

Hi,

I am analysing commerical property with 2 mom pop tenants stores, NN lease, 14% cap rate, 4 year remaining, and seller is one of the tenant.

What all should I look for along with condition of the property?

also, read about performa, it would be nice if someone can share sample copy of it.

not sure if am missing any warning signs.

Thanks

Ray

[Joel Owens]

Ray,

Look up Carter Stout Attorney.

In regards to lenders likely a small local community bank. Anything under 1 million loan most lenders are not interested in. They like larger properties with strong regional to national tenants and newer builds.

Michael,

Mixed use the interest rates are generally higher than single asset types because you have multiple income streams to manage from various asset classes. What kind of loan you can get varies with deal size, location, and a ton of other factors. Make sure you know what financing you can get before you settle on a sales price with a seller.