All Forum Posts by: Ivan Bovkun

Thanks a lot Tim, appreciate your opinion.

Best,

IB

Steve,

Thanks very much for your response. The points you have kindly listed out make a lot of sense and practical value.

Here are some specifics and a question:

1. The building is occupied by only 23% (which is of my main concern); 2. The current cash flows are enough for the owner to break even (at least this is what it seems but it is not a fact); 3. The building's condition is fare meaning there are no major visual defects but an inspection is to be done shortly. Also, the subject is located in a flooding zone and that particular area was severely affected by Irene and Sandy.  

Now, as per your quote:"When you buy this type of building you are really buying the leases not necessarily the building.", if you had funds to acquire an almost empty (because 77% or so vacancy is scary but that seems to be due to the current owner's unwillingness and negligence) office building in fare condition selling at really good price, at a theoretically good geographic location (but in a flooding zone, zip 07470), would you, as investor, take the risk of buying this type of investment property in order to put an effort and bring it back to life (by attracting new tenants and thereby to bring the occupancy back to a sound for the area 85-90%)? I would like to hear your opinion.

Regards,

IB

Hello All,

I am new to commercial RE investing and would like to ask for a piece of advice regarding how to perform an initial marketing research toward purchasing an office building in a different state (I am in NY and the property is in Northern NJ). I have already checked Property Shark and LoopNet and did obtained some information but it is not sufficient to make a conclusion whether the subject is worth investing. I would appreciate any practical steps (course of action to get the property records, financial and statistical data, allowable vacancy ratio in the area, etc. ) that I should take.

Thanks in advance.

IB