All Forum Posts by: Jeff Yang

Millions thanks to Ronald Rohde,Jeff Moore and Kevin Vandenboss. Especially to Kevin,really appreciate you wrote so many priceless advices to me.

Today ,the agent showed me the property. It's a sleep specialist,weight control centre. 6 rooms ,one queen size bed and half bathroom in each room,look like a hotel room. It's a local branch store,four stores in this area. They pay the rent $4500/month,they also have to pay about $1500/mon HOA,property tax and other expense.

I knew the agent from local newspaper,he put ads on a lot of newspapers.I told him if he find one leased property please tell me.So he send me this property. At first he said his friend is the listing agent,because the friend is residence agent so she asked my agent to help her.So I think he is the seller's agent.

When I talked this deal to my buddy,he was commercial agent. My buddy recomended me his old boss,a very experienced commercial agent to me. I contact him ,trying to hire him as buyer's agent.

Today when I talked to the agent showed me the property,he said he is my agent as buyer's agent.There is another listing agent,his friend ,the lady mentioned above was the buyer's agent for one client,because the client didn't get his fund so the deal didn't close.That's why this agent and the lady agent try to find another buyer.He said if I bring another buyer agent,then I do not call him anymore.

When I talked to him if it is possible to let the landlord to ask the tenant to sign a ten yrs lease.He said if they can sign a ten yrs lease,the selling price will go up a lot. Then he said even they signed ten yrs lease ,if the tenant want to leave at 3,or 5 yrs,he can go,there is nothing I can do to let him finish the whole ten yrs lease.

About 2300 sqf,

medical office

tenant stay there for 6 yrs already,

just renewed another 3 yrs

asking for $560k

after all expenses,net income $54k/yr

cap rate 9

tenant take care of all fees and maintenance.

rental raise 3% every year.

my opinion: not too much appreciation,good cash flow.

QUESTIONS:

is this a good deal?

how to negotiate?

how much is a reasonable offer?

thanks to any replies.

Thank you, Karen.

This morning I called the seller's attorney,

He said he doesn't have the letter,the seller has it.

I asked my agent to get a copy of the letter,

The seller said he can't find it.

Fortunately,the seller's attorney told me that the notice is about the house is burnt,need tear down. So I don't care the violation now.

My partner will do all the due diligence,

that's why I partner up with a professional.

He said we can do prefab,it's so much cheaper and faster.

Talked with my partner,

he is a civil engineer,

He built a couple of shopping centers and thousands of SF houses.

He said we can work on this project,

This gives me a lot of more confidence.

There are some problems with the project.

I offered $65k,my agent told me that the seller accept this.

Then the seller's attorney sent me a letter which said there is a violation notice came from local county,and the seller's attorney deleted some provisions on the contract and asked me to sign.

I talked to my attorney today,he told me sth that I must pay attention.

1) I need to find out what the violation is,whether it will impact my development.

2) I talked to the neighbor and he said a lot of people dumped trash on this lot. My attorney told me that this maybe a huge proplem.If there is some contamination come from the trash and if the neighbors use well water,it will take forever to get permit from the environment department.

3) I need find out if the deed is subdividable.If the deed says this lot is not subdividable,it's no possible to develop this land.

........

There are some problems with the project.

I offered $65k,my agent told me that the seller accept this.

Then the seller's attorney sent me a letter which said there is a violation notice came from local county,and the seller's attorney deleted some provisions on the contract and asked me to sign.

I talked to my attorney today,he told me sth that I must pay attention.

1) I need to find out what the violation is,whether it will impact my development.

2) I talked to the neighbor and he said a lot of people dumped trash on this lot. My attorney told me that this maybe a huge proplem.If there is some contamination come from the trash and if the neighbors use well water,it will take forever to get permit from the environment department.

3) I need find out if the deed is subdividable.If the deed says this lot is not subdividable,it's no possible to develop this land.

........

J,Mike,Scott:

Many thanks to all of you.

All your advice are very informative.

You are right, Karen.

If can,my first choice will be building townhouses,

Maybe I can also consider building apartment or condominium.

I will find out next Monday.

Thank you,Karen.

I will be more carefull.

If I can parter up with the developer whom I am going to meet next Monday,

that will be great. He is an engineer as well.

If I can't ,I am going to ask him to be my mentor and supervise every step on the project..

Thanks,Grant.

Hopefully,you are right.

When I called the zoning office,they said I need to ask civil engineer for more details.