All Forum Posts by: Maxy Million

@Maxy Million

Does it recommend a phase 2 ?

@Maxy Million

Is there a phase 1 environment on the property

That is critical

@Maxy Million How are you going to be financing the purchase?

Hey @Maxy Million what a great opportunity!  Generally the biggest cons to these are environmental impacts and restricted uses following the gas station leaving or going dark.  Generally I'd take the same approach as any investment and ensure the location was sound.  If the gas station is on a great intersection with access from both directions and lights to get in and out, and perhaps its on the outparcel of a major grocery, with car wash and or drive through potential....that to me is a 10/10 location and property.  

Questions I'd have...how many years are left on that 20 year lease, do they have any options on the lease, and is there any underlying "ground leases" in the deal that you are absorbing somehow.  Next I'd want to understand the municipalities master plan for the area and if there are any road changes/widening or redevelopments planned that will negatively impact your traffic counts, or your access to the site.  

I'd also check on how that gas station is doing at a larger level, is it something like a buccees or a sheets with a cult following or is this a random mobile station that sells bait and tackle and serves as the general store for the entire town...both are great options but just require different underwriting in my mind.

Question: is the Property Manager charging you a management fee based on a percentage of rent income collected? If so, classifying the utility income as rent income would actually increase the manager's fee. If the Tenant pays $150 a month for utility but it's classfied as rent income, a 10% management fee would cost you $15 per month.

Whether it's costing you or not, it's important for proper accounting. I would demand they fix it immediately or consider firing them.

@Keith Cuddeback

Get acquainted with a title company in your area, and they can help you get loan balances, chain of title ect. Markets across the country are very hot, unless it’s on off market deal or motivated seller, lowball offers are very tough in this environment,

how much can you put down?

I saw some interesting data on Twitter recently used as the basis for an argument that rising interest rates will not necessarily cause prices to fall:
https://twitter.com/NikhaarSha...

I tend to agree and think that the only way prices substantially adjust is if inventory/supply increases.