All Forum Posts by: Obaid M.

Thank you all for the great and informative feedback and support. I will not be pursuing this deal! Many factors played into this decision from all the participants in this post.

Mark and Rachel - I will soon engage my agent. Since I did not receive this deal from him I did not involve him yet.

@Mark Creason as per your earlier post, how would you classify Class A, B and C in Houston? Could you give me an example of a B and C area in Houston? Thanks

@JD Martin - great point. I've not even thought about that. What does a good cash reserves plan look like? What does a "total disaster" plan look like?

Thank you everyone for all the great information, pointers and insights.

Great advice @James Maher. How can one check to occupancy rates in the area - to get a feel for what occupancy rate to expect in the future?

@Sterling White and @Mark Brogan - seller has sent me a confidentiality agreement which asks for me to not reach out to the current tenants. Is that wierd? I have not yet signed it.

@Mark Brogan Once I have the rental history, how do I verify that its not bogus info? As in, how do I know that the seller is not simply making it up on Excel and printing it? Ask for bank statements for the property account?

@Mark Creason point noted!

@Mark Creason is there a forum or a info page on BP that you could refer me to to get a list of basic steps in every commerical real estate deal? As in, what happens when from coming across a deal to due diligence to financing the deal and eventually closing?

e.g. 

Step 1: Find a deal and analyze it
Step 2: If interested have the buyer's agent (my agent) send a LOI
Step 3: .....

And so on and so forth.

Thanks @Mark Creason. I'll do just that before I even sign the agreement.

Hello BiggerPockets! I'm getting closer to my Deal #1 seems like (closer than I've ever been)...and I'm getting a bit nervous thinking about monthly payments I'll owe to the lender. 

The property I'm looking at is currently 70% occupied. One of the 4 tenants has less than 1 year left and there are two units currently vacant.

What if somehow none of the tenants renew their leases and I'm stuck with this huge payment that I'll owe. I know every business has its risks - am I worrying for no reason? This is a 12 year old commercial property. Couple of the tenants have been there a long time. About 3 years ago property was 100% occupied I'm told. 

Am i worrying myself for no good reason? How do I verify past occupancy information? What is the worst case scenario I'm looking at if property goes to 100% vacant?

Thank you @Mark Creason. I spoke to the selling agent and he's willing to show me proof of rents, leases and he also said seller is willing to accept a lower offer. Basically he's wanting me to negotiate. He has sent me a confidentiality agreement so he can share the information with me. Based on the NEW info he shared with me, I still want to atleast run the numbers before I walk away.

Do I need to watch out for anything as far as the contract is concerned? If I do not list my agent right now on the agreement, can I add him/her later on?