All Forum Posts by: Mason Moran

@ Don Konipol,

Thank you for your insight sir!
I actually saw the property while driving by and did some research, found the owner and reached out to them. 
They then informed me that the property was for sale. I believe the property is mismanaged. I also agree that the owner may not be serious about selling, or wants a sucker. I certainly will not be offering asking price.
I'm interested in this for two reasons;
First and foremost if I can get a lower offer accepted, I can make this profitable (I have a few commercial property management teams in mind.)
secondly, from a purely academic standpoint, this will be my first commercial building that I get to practice how to valuate commercial real estate, learning new things (such as the issues that come up with a gas station), and connecting with new people in commercial real estate!

Thank you again for you help!

Hello all!

I have been presented with an opportunity to invest in a commercial property, a triple net property with 6 units. 
Currently 3/6 are leased. 2 of the 3 leases end this year, another one it leased until 2028. The asking price is 1.65 million. I always thought that valuating a commercial property was (NOI/CAP rate) - cost to stabilize. Currently the income is about 67k a year / .08 (8% cap rate) - 60,000 for a year to stabilize (worse case scenario). This has the property at about 782,500. Which is almost a million less than asking. Also, this doesn't take into consideration that the property will be 5/6 vacant in the next coming year.

Also, the property comes with a gas station with 6 pumps and currently vacant. What should one look out for when purchasing a property with a gas station on it?