Mmm. Not sure what happened to my original post - it seems to have been cut in half. The rest of the post should read:
Every now and again, I see a run down CRE asset and it just sits there. Sometimes a warehouse, sometimes an old office block. There’s doesn’t seem to be any attempt by the owner to get the space tenanted or to liquidate it. It just sits there and gets progressively more and more overgrown with the risk of falling into disrepair.
As I have little investable cash right now to buy such assets outright, I would like to approach owners of such buildings to negotiate and agree to let at a discount rate that reflects the current state of the property, pay for the cleanup & marketing and then sublet at a profit to a Third Party when the building looks tidy again. I’d also like to include an Option to purchase the asset after a specified time.
It seems feasible, as the owner benefits from a hands off, but profitable relationship and I profit from the cashflow and option agreement to get my hands on the asset. Win-Win, right?
