All Forum Posts by: Olga Levin

Thank you @Joel Owens!

I sent you a message.

Joel,

Can I message you the location in case you happen to know the area and can give me a ballpark value?

Are you saying that what a developer would pay based on the best use would be better than putting it on the market? I believe buyer specified they plan on doing phase 1 and 2 to check the soil.

Thank you both for your input!

The gradual pain point makes a lot of sense and was what we were thinking as well.

@Joel Owens Any advice on a resource to find sold comps? I saw a couple similar properties listed for sale on loopnet, but hard to determine value from those as I do not know if they end up selling for way under or have a very long DOM period. Is there an entity that keeps track of these indicators for commercial or land asset types?

Hoping to get some advice on valuing a commercial/indurstrial property and an offer that was received.

A friend owns a lot in Miami 33147 area. He operates a car repair and sales business there. He received an offer from a developer to purchase the property with 90 day inspection period and another 240 day for permits + 3 30 day extensions.

The offer came through a guy who came by the property to see if they wanted to sell and then brought a buyer a few weeks later. It's not currently listed on the market. The buyer is a big developer that intends to convert the lot into a gas station.

I am trying to figure out if the terms of waiting for the permits to come through are standard or if the buyer is trying to put the risk on the seller while tying up the property? 

How can I evaluate if the price offered is close to property value? Hard to find comps in the area, since it's a big lot with some structures and a small office, but I am guessing most of the value is in the land itself. Can someone recommend a local broker who knows the area and can give some ideas?

Does it make sense to list with a broker to get the best offer if he ends up wanting to sell?

I just wish I could be in two places at once. Some of the topics of interest were running at the same time and i had to pick one :) Yes for yearly events!

@Account Closed Unfortunately I didn't find a software that had it all. We tried appfolio for a short period, but quickly realized that it was too rigid and lacked the ability to make it fit with what we needed. 

We ended up building something in house in excel with Pivot tables and combined that with Podio for project management.

@Jay Hinrichs thanks for your response. He is not asking me to be an unsecured creditor, he is asking me to forgo the interest on my loan and the equity portion of the profit. In other words, my principal stays in the same position, I would just not get anything but the principal when the deal pays off and his profit would be larger as a result. Seems more of a greedy attempt to get more than to secure his position.

Hi everyone and thank you again for all the help. Just to give an update, I was able to get the borrower back to the table after applying some pressure on his associates, broker and others involved. He is now in constant communication with me. The issue is he ran out of money to finish the project, because of bad front end calculations and some overspending by his partner. He has been desperately searching for investors to put up the additional funds needed and had a few people that dragged him out, but all failed to come through.

The third lien holder, who was recorded behind my lien has offered to put up the money to complete the project. However his stipulation is that I have to give up my interest and equity position in the deal and that i will be payed my principal only after the deal is done.

Luckily, the local market has been good and property values have been going up. There is still a pretty good profit potential in the deal, despite the fact it has been sitting stagnant for a while. I think there is enough profit for both us and the original rehabber. I have offered the third lien to buy me out now, but he is ticking to his "offer".

I want him to put up the money, but I don't want to give up the profit at this point. He has an inferior leverage position and his principal already invested is the first at risk. 

Does anyone has tips on how to negotiate with him?

@Jay Hinrichs 

@Jon Holdman

@Jon Holdman@Wayne Brooks

Would love to hear your perspective.

Thank you again for everyone's advice... I have a very good idea what a worst case scenario is going to look like :) Will work on figuring out what else can be done to save what I can.

@Justin R. This operator had skin in the game of his own 45K when I gave him my money and he didn't intend to pull it out or so he said. Nothing stopped him from borrowing more and placing another lien on the property two weeks later, I only found out about it after the deal started to fall apart and I researched the title records. He did the same thing to the first lien. Personal capital can be pulled out very easily from what I have learned.

@Jon Holdman  I thought I understood my risks going into this deal, but I certainly didn't expect the borrower to be a dishonest person, who would refuse to be reasonable. 

You are probably right.. if I have to go through the whole foreclosure process.. there won't be anything left. My recourse at that point would be personal/corporate guarantee for what it's worth. However, if the property is completed and sold within a month or two either by the original borrower or someone else there should be enough to pay everyone off. At this point, I believe there is still a chance it will happen.

I have checked public registrar's office and it has my lien recorded as the second. I am not in a position to pay off the first and I will hold off on offering to sell to them until they initiate foreclosure or I see no other avenues to resolve the situation. Seems a bit early for that move. 

@Jay Hinrichs

Yes, he is definitely taking advantage of the fact I am not local. I didn't record through escrow because the funds from my IRA came with a delay and the title owner actually put his money in as a place holder, so do not believe I have a title policy on it.

Agree on the legal expenses, I see that happening all the time and the results from pursuing fraud charges are minimal or will take forever to get. Will have to use one for a demand letter though.