Investor · Colorado Springs, CO · Member since 2020 · 9 posts · 4 votes
Hello BP! We are currently looking at a commercial property that has MOTEL/MHP/RV+BOAT Storage and more.
The seller is asking for $4.5M (List price) at a 10% cap rate, with opportunity to grow revenues with some updating and upgrading (rents are low, room rates could be improved)
What are some creative financing options that we can look into to make this transaction happen?
We have several STRs and LTRs, currently building 4 STRs townhomes in Scottsdale opening Fall of 2022.
We are financially stable and looking at growing our portfolio.
Real Estate Consultant · Doylestown, PA · Member since 2022 · 12 posts · 11 votes
4y
You might want to give some color on the seller - ie age, desire to exit or needs cash flow, wish to stay on as op partner??
“creative” generally involves seller financing - which, if they were interested, could allow you to use your cash on upgrades…. Then refinance the improved project.
Real Estate Consultant · Doylestown, PA · Member since 2022 · 12 posts · 11 votes
4y
You might want to give some color on the seller - ie age, desire to exit or needs cash flow, wish to stay on as op partner??
“creative” generally involves seller financing - which, if they were interested, could allow you to use your cash on upgrades…. Then refinance the improved project.
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
4y
You really need to know what the debt is. If its free and clear you have more options. If its low debt, you still have seller second note, installment sales etc. If there high debt load, your options are pretty limited.
Investor · Colorado Springs, CO · Member since 2020 · 9 posts · 4 votes
4y
Thank you for the initial feedback gents... @Eric Cornwell good question, waiting on response back from their agent, lot's of moving parts on these types of deals.