All Forum Posts by: Parker Fairfield

I'm selling a commercial property in NH. 
What's a reasonable interest rate? They've suggested 6%. Seems SUPER low. I would think that 9% is reasonable. 

Your thoughts? 

Purchase Price:

• Total: $1,985,000.
• Deposit: $10,000 (First Deposit) within 3 days, additional $30,000 (Second Deposit) within 30 days.
• Seller Financing: $297,750 (15%), 5-year term, 20-year amortization, 6% interest.
• Balance: $1,647,250 to be paid at closing.

@Eliott Elias

'At a 50% discount

I'm interested in understanding this a bit more. Care to share?

@CJ M.

Curious what your metrics, ranges are for your searching for properties

@ThomasRoy Penland

Who's going to manage it?

How far a drive are you away?

What's the purchase price?

Expected cash on cash?

Undergraduate or grad students?

Interesting

@Dave Foster wrote a good reply to a different thread... I'm looking for clarity AND more advice

30,000 foot overview-

I bought a small motel in summer of 2017 for $435,000 ($135k down, $300k mortgage).

Invested additional (approximately) $550,000.

Current mortgage payoff amount $290,000.

Looking at selling it, estimated sales price $3m. (FWIW, I've JUST decided to list it this week and haven't done any research on this)

Q1. What's my minimum amount I must put into 1031 Exchange(s) to minimize my tax burden? [As I understand it, my initial investment and additional invested cash (135k + 550k) would not need to be invested. I've learned that the depreciation amount is critical too ]

Q2. What's the best site describing the nuts and bolts on 1031 investing the remaining profits?

Q3.The remaining $1.9m or so (after mortgage and RE agent commissions, etc) could then be invested in any real estate project in the USA, correct?

[If possible, I’d love to buy land, and build an investment property on it… total spend about $1.1m. and also buy a few other investment properties]

Q4. Can I buy a business which has real estate?

Q5. What would you look to invest in anywhere, for maximum return over 8 to 10 year time horizon

Looking forward to constructive criticism and comments.

@Dave Foster

Loved reading the above.

I'll post a new thread.

https://bit.ly/2022THPvaluation

Link got screwed up

I'm considering selling my Duck-Billed Platypus.

It's a 19 unit motel, which is 100% occupied for years, rented as workforce housing. With a paid waiting list!

The average "guest" has lived more than 593 days (as of 8/21/2022).

The property is 3.2 acres in North Conway, NH. In addition to the 19 units, it has a laundromat with vending machines, an in ground swimming pool, and a 3BR, 3BA owner's house (around 2700 square feet).

A massive benefit to being, legally, a motel, is that we have 'guests', not 'tenants'. So if they don't pay, we call the local police and they get 'ejected' (and they are not legally entitled to be evicted)... which means the police escort them off the property in an hour or so.

We need to do basic maintenance... cut the grass, plunge a stopped toilet, etc. Then when a guest checks out (about 1 room a year), we throw away all the bedding and replace it ... clean the room, and start with a new guest. We only clean a room one time for a new guest. They're responsible from then on.

NOI = $245,000+ / year

Using the business appraiser's formula, the price should be about $3m to 3.5m (that formula was used by the bank that gave me the mortgage). I updated their estimates with actuals.

https://bit.ly/2022THPvactual.

I'm willing to hold some back.

@David Arsene

Did the contractor stick to those prices?

What level construction? A B ?

@Celest Southwick

Great question. I'm looking forward to watching the answers.

FWIW, I have a bunch (70 acres) in a rural area in Maine... which I want to develop.