All Forum Posts by: Shane Montgomery

My question is I have an offer on the table to buy a piece of Commercial Real Estate, I put 10k earnest deposit on the Purchase Agreement, but they won't send back a signed purchase agreement until I have a pre-approval, and my Business Banking Officer says he can't get the ball rolling until there is a signed Purchase Agreement. He is also saying that the bank he works for doesn't do pre-approval on Commercial Properties, and neither side will budge, big bank vs. little Brokerage firm. I am inclined to believe that the Brokerage lady is stalling so she can get full commission on the place, because I have LOI from the bank, and my earnest deposit would make me believe that I was a serious buyer. Any advice would be greatly appreciated.

Does anyone have any experience with a high crime rate area (70% above national average), and NNN retail commercial property? Would like to know what experiences you had to put up with, and if the investment was worth the risk.

@Ian Goodstein Is one of the units rented, if so which one, of its the 3bd side average rent for the area is 5187, according to www.rentometer.com

If there are no current tenants, then she is calculating pro forma cap rate which, is an estimation of probably getting it rented.

@Frank Patalano Fear of not knowing what is going to happen, you can plan for everything, have every contingency in place, and still fail. Especially as a new investor.

Taxes are from the county auditor website at 226.19 a year, in a very poor rural area. I was excited about the cash flow but the area is just going to keep getting worse and worse, thanks for your input.

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