All Forum Posts by: Eddie Quispe

@Karen Margrave great questions, I appreciate it.

1. If you loaned him the money and he didn't pay, would you want the property? Yes, I would love to buy it, it is on a major street with high traffic and I believe it can rent easy. I currently own a fourplex on the same street and the amount of traffic is enough to keep them rented. I know they are different type of tenants but I mention it to illustrate the amount of traffic we have on this street.

2. What is the type of business that is in the building? It is an auto repair shop, they specialize in custom 4x4s.

3. What is the income of the tenant, and can he afford to service the debt? I don't know... from what I talked to him his business is doing well and he doesn't seem to have problem paying rent, but I'll have to verify that. He has 3 more years on the lease contract. In the case that he doesn't pay and I have a lien on the property, what will be my options? Keeping in mind the current owner is financing the rest.

4. He will having nothing into the deal, and have 100% financing, which is a great deal for him. You on the other hand will have all the risk. Is it worth it to you? That's a great point, perhaps I can talk to him and have him put some of his own money as well. He mentioned that if he buys the property he would like to expand his business.

Here is a little more info:

Tenant pays $2,000.00 per month. Landlord pays Taxes and Insurance. 2011 taxes 4,636.00, Insurance $1,100.00 per year.

Free standing metal building 2,109 SF

Lot: 0.63Acres

Price: 245,000

This is a very interesting situation I run into this afternoon. I went to see a commercial building/land for sale (zoned C1) listed on a local real estate website. I started talking to the tenant and he said he would like to buy the property but of course he doesn't have the money and is in the process of looking for financing. He has been in the building for 7 years.

I asked him a few questions and here is the deal:

He needs 60K for the down payment. If he can come up with 60K the owner will finance it for him (carry the note). I have a couple of questions:

1. If I were to lend him the money, what interest rate should I charge?

2. What terms do you usually do? 5 years?

3. What guarantees should I ask for at a minimum? Lien the property...

4. Is this a good way to invest 60K or I am better off by doing something else?

I welcome any feedback, comments, critiques etc. Thanks!!!

Thanks for the feedback, these last few days I made a lot of phone calls and it has been such a great learning experience. The more I talk about this deal with other people it seems I am better off to develop the entire lot (3ACs). The reason behind is that to bring utilities to the property will be expensive if I only build 8 units. Building more units will offset the cost of bringing utilities and will bring down the cost to build per unit.

It was a great learning experience to call the utility companies and ask for ballpark costs to bring utilities to the property, I didn't know they do that. To bring electricity from across the street is about 40K... yikes!!! So... the search continues.... Thanks again!!!

@Derek Carrol Thanks!

Looks like there is a lot I need to learn... ;) I am going thru the podcasts and posts searching for the things you recommended on item 2. You are right some of the information is already available and not that hard to find, such as schools; they are ranked top school district in the state and the area has some middle and high end homes within a 4 miles radio.

Thanks Giovanni, great info, I just signed up with Hendricks Berkadia. I forgot about AANM, I just registered for their next breakfast on Feb 14. I appreciate the information!

Hello everyone, my wife and I are looking at purchasing land (3 AC) zoned multifamily (R6) and building a small apartment complex. The reason behind is that we can't find any small apartments in our market that fit our criteria and second we would like to own it for 20 years or more, so building a new one will be less maintenance. We have some RE experience (currently own a few) and built a duplex in the past but nothing this big. Of course we'll put together a qualified team to help us with this task.

I have some questions on this idea though and hope I can tap on your experience and wisdom:

1. We'll start with a 6 or 8 units building on a portion of the 3 AC land as that's all we can finance at this time. The idea is to build additional units as we can afford or look for investor. Is this a good idea or is it better to look for financing/investors to develop the entire 3 AC land right away?

2. The land is located in front of a middle school and behind Lowes and near high end homes. What makes an ideal location for an apartment building? How do I determine if this is an ideal location? Are there any websites that tells you if your market doesn't have enough apartments or too much?

We currently have a couple of SFHs and small Multifamilies (fourplex/duplex) and was inspired by the BP podcast about the small apartment buildings and the benefits it provides. I welcome any feedback and comments.

Thank you for all the feedback and advice. I'll double check with our county assessor's office; last time I called I got the round around... the search continues. I looked at zillow and reading the forums I learned also the Loopnet has good info on commercial properties. Thanks again!!

Hello BP members, does anyone know where I can find what a specific house or land was sold for? Is this information available to the public? I believe the city or county keeps this information, I called them but I was transferred several times with no luck.

I would like to buy 3 AC land and it will be nice to know what the owner paid back in 2006.

Thank you.