All Forum Posts by: Jason J.

 Yes I did check the state database for environmental contamination. I found a parcel approx. 400 feet away that had a petroleum leak in the late 1990's. It looks like they excavated some soil and did some subsequent follow-up testing. The file was closed in 1999 and it is no longer an active site.

I think to be safe, I will try to get the previous phase 1 for the property, completed about 10 years ago. If I can't get ahold of that, I will pay to have a phase 1 done before the auction. A couple thousand bucks is worth it for piece of mind.

Approx. value of property is $1m to $1.2m

I do have multiple lenders I work with and did speak with one of them about this property. They will pretty much loan me money for anything, we have a great relationship. They are willing to skip the phase 1 and even skip the appraisal, as long as I personally guarantee the loan. And they are pretty sure they can close in 30 days. I have the funds as a backup plan but don't really want to tie up the cash. I could always convert to a loan after the close, worse case. Or loan against the equity in the property when I find the next deal.

 Thank you Jay, that is great advice. I think they had a phase 1 done about 10 years ago when the property last sold. I'm going to try to get a copy of that and I think I would feel comfortable moving forward with that. Otherwise I will pay up front to do one before the auction.

If you were interested in bidding on an industrial property coming up for auction in approx 1 month, how would you handle an environmental inspection? Would you skip the inspection or pay for an inspection before bidding? There is no guarantee I would be the high bidder and an environmental could cost $2-3k. Is it still worth getting?

I ended up contacting the director of accessibility at the state and they confirmed. Nothing needed unless we are doing construction on the building or changing the occupancy. Thanks for the help guys!

I recently acquired a 16,000sf warehouse / office building complex. There is an existing tenant that is occupying all of the warehouse space and 1500sf of the office space.

I have a new tenant that is interested in the remaining 4500sf of office space. There are 2 bathrooms in the space and it does not look like either bathroom would be ADA compliant by current standards.

Would I be required to make one of the bathrooms ADA compliant before leasing to the new office tenant? 

Could there be liability in renting them the space if it is not ADA compliant?

The existing bathroom is 72" x 75" in size. See attached photo.

Note: We are not doing any other construction or anything else to the space that would require a building permit.

Thanks for the advice everyone. I ended up going with the 7 year balloon at 3% with a standard 20yr amortization. I buy and hold with all of my properties so this makes the most sense. This loan is for an 18,000sf commercial industrial / office building that is approximately 70% leased to a single tenant. In it's current state, the building is cash flow neutral. Because of this, the bank is making me put 25% down instead of the usual 20% and that is OK with me. I have a few tenants lined up for the rest of the space so I think it will be a great value-add investment. The building is in excellent condition and should be close to a 9 cap once fully leased.

If you had to make a decision in the current market, would you take 3% with 7yr balloon or 2.75% with 5 yr balloon? On a 20 yr amortization. What is your reasoning?

If you had to make a decision in the current market, would you take 3% with 7yr balloon or 2.75% with 5 yr balloon? On a 20 yr amortization. What is your reasoning?

I'm looking for anyone who could share experiences of how much they paid to demolish interior office space and turn it into bare shell condition. Job size and cost or price per sf. Picture shows similar building.