I got a lead through my real estate property management class. Basically, this gentlemen owns a motor home business, with multiple commercial properties which he uses to showcase his inventory. Anyways, I heard from my teacher that his business is slow so hes consolidating all his inventory to one location. I tracked down the commercial property that he abandoned, photographed it, then got a property profile from a title company.
Here are some numbers:
The gentlemen bought the property in 1988 for $160,000
It currently has a tax value of: $825,553, so my guesstimation of its real value is around $900,000 - $1,000,000 +
It shows one mortgage at $125,000
The zoning is C2
It's about 65,000 square feet (1.49 acres)
Here is my plan of attack:
Talk to my private investor, and get a signed referral memorandum ensuring a finders fee PRIOR to me discussing anything about the property.
Hand the deal over to my private investor and let them hammer out the deal.
Only when all the numbers have been worked out will we discuss my finders fee
Add my referral memorandum into escrow as demand for payment
This would be my first deal, so I feel it would be better for me get my finders fee and then watch it from the sidelines- while learning of course!
Here is what I am unsure of:
Today is saturday morning. By mid-day monday I will have CMA's on this property.
Should I wait until I have CMA's before I approach my private investor with this deal?
Half of me thinks I should wait until I have the CMA's, because I will have more ammo so to speak.
The other half is telling me to POUNCE on this deal immediately.
NOTE*** Owner has not specified if he wants to sell, HOWEVER- he consolidated because business is SLOW. It is my hope that this gentlemen would prefer to sell the property and reinvest the cash into his motor home business.
Do I pounce on this prospect, or do I wait until I have CMA's
Thank you to everybody in advance who reads and or responds to this
Ryan
