Is this a good idea? Commercial

[Thomas Pollard]

Ok so I just started out (haven’t even bought my first investment property) and an owner of a 50 unit reached out to me to see if I could help him. It sounds like an amazing opportunity but I have no idea what I’m doing!

Here’s what I know:

Building is 50 units.

Construction has already begun and is 37% phase one complete.

Current appraisal is 977 000. As of (Dec17/2020)

Expected complete value is 3.8 mil.

One private money loan of 300k in first position on property.

Needs 2.6 to complete construction.

9 units pre leased.

I told the guy that I was just starting but it sounds like a good opportunity so I would reach out to some people. What better people then the BP community!

You can check out the building at lemajestique.ca and I can try to answer any questions you have.

[Erik W.]

@Thomas Pollard, it does and doesn't answer my question.

Again, I'm naturally skeptical....but in this business you have to be careful.  I do not understand why an experienced real estate investor would go randomly Googling for people on the Internet to finance a major deal.  Maybe you have a KILLER website and he's unsophisticated enough to believe you have a lot of knowledge and experience in the industry (hard to believe, but possible....) or maybe he's a shark looking for an easy meal in a shallow pond.

No offense to you and your eager desire to get into real estate, but this guy sounds like a scammer.  Experienced rehabbers do not go looking for newbies who have zero experience to fund their deals.  They go to their experienced contacts with whom they have done many deals before and whom they know can deliver what they need.

Be careful and triple check EVERYTHING.