Seeking Guidance about a full rehab

[Alex Ramirez]

Hi BP friends. I need your help. I have a lead that I think has really good potential. It consist of a 5,000 sq/ft building. Half of that are 4 apartments and the other half is office/retail space. The building was built in 1983 but the tricky part is that it’s fully vacant due to needing a full rehab. The owner wants to get rid of it bc he does not have the money to rehab the property and he is currently in financial distress. The property is free and clear and I think the price he is asking for is fairly reasonable. He is also willing to carry the note with low money down. The property is located 40 miles northeast from Houston, TX. I would love to get some guidance from investors that have gone to the same process. What are some of the things to look for? One of my main questions is since the building isn’t producing any income and technically isn’t worth anything, how do you go about offering for this type of properties? Do you just offer land value? I will really appreciate your input. Also, I would love to get on the phone with someone that’s willing to help. Thank you very much in advance.

[Lee Ripma]

@Alex Ramirez

I would suggest that you find a partner who is experienced at rehabbing deals like this. The cost to turn this around is critical. You want to make sure that you’re buying this at a price that gives you a lot of equity. You should really get it out there. If no one is excited about this - there is a reason. I’m not going to hop on a call with you but I suggest to get this deal in front of experienced folks to see if they would partner.