Currently working a commercial deal - Advice on deal structure?

[Patrick Bisson]

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. 

Thanks in advance for your recommendations!

Patrick & Mychele

[Eric Cornwell]

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.