All Forum Posts by: Brandon Duensing

I am looking to expand my business, but instead of leasing another space, I am trying to purchase a vacant industrial building and convert it to a retail location. Zoning for retail is already permitted there, the redevelopment will likely take $350K to convert it. My question, how do I value the property, the building is likely only worth $150K max, it has been vacant for over a year, so not income/cap rate estimate, plus its just me that will be utilizing it.

I am trying to determine what is a reasonable offer and also if you have any advice purchasing commercial property I would appreciate any knowledge you can pass on.

Thanks!

Hey everyone looks like we are thinking a new route, new comps in the neighborhood may justify a different route, thoughts, instead on rehabbing the existing floorplan of a 2/1 and 1,100 sqft home, we are thinking of adding on a 250 sqft master suite to the back of the home, make it a 3/2 and 1,350 sqft. Looks like comps are going for $215/ft and we can create an addition for ~$110/sqft. This should add even more spread to the deal? Thoughts? Over improving? Is the lengthy timeline not worth it?

Thanks,

Brandon

@Dave Van Horn this is perfect, and exactly what I was looking for, definitely a lot on here to learn about. I really appreciate the break-down of potential issues to be aware of.

Very confident in ARV, its actually a conservative number for a quick sell based on comps from last month. The rehab has the potential to be +/- 15% or (~$5K). Both numbers were calculated by myself through research and seeing the property.

Dave and Alan, thanks for the info, good rec on BP's existing checklist. I am looking for all of the intangible unknowns, titling issues, permitting issues that come back to bite you. Are there certain common issues I need to review through public records (none closed permits, liens, etc). All of the rehab and construction costs I have a very solid understanding of knowns and unknowns.

Wholesaler passed along a potential deal:

Purchase price: $135K, estimated rehab $35K, will be using HML to fund 70% of the deal, two comps sold in May '20 the street behind the property, they were not rehabbed. The comps justify a $225K ARV. The location is right next to a massive new downtown development in a currently being gentrified location. Would make for either a good flip or an even better cash-out refi to hold as land value increases.

Thoughts on the deal and initial numbers?

So I am finally venturing into home rehab and re-sell this year, besides the obvious financial analysis (ROI, ARV, rehab costs etc.) what are a good list of "unexpected" issues to be aware of to improve my due diligence?

- Liens, permitting issues, zoning issues, titling issues, etc? I am trying to create a deal workflow process to help minimize getting caught with unexpected timeline or costing issues. 

Hey everyone, I have done a flip previously and came out on the good end of the deal...after recently opening a successful coffee shop I am jumping back into another RE investment opportunity. I am looking at a tear down and new construction. Can anyone recommend a good hard money lender for approximately $1M all-in in central Florida?