So I came across this property. The owners seems motivated. He has this pretty big property at 6500 sq ft. Which includes a parking lot in the back. It looks like it had office spaces in the front part and I believe he said it was a cosmetics business in the back part of the property. It definitely needs work I noticed waters stains on the inside but he said the roof has been fixed about a year ago. I know I need to do my due diligence but he happened to mention that it had code liens on it. And that if I was willing to take care of it he would drop $50k of the price of $299k. And most likely would be willing to negotiate more. He told me to talk to the city and see if I could get the liens removed.
How would should I handle this deal. What should be my next step if any?
Tie the property up at the Seller's terms for as long as you can subject to figuring out the liens and also a home inspection. Do your due diligence. If you can figure out the liens adjust your price accordingly and also reduce your offer to offset needed improvements. At that point the Seller will hopefully take the reduced offer just to get the deal done.
I appreciate your advice. I'm in the process of finding out about the liens. The city clerk charges $11 to get the info but it takes 3-4 days and the owner of the commercial property told me to get back to him by tomorrow so I may have to tell him I need a few more days to see if I can do anything about the liens.
What type of contract do I use to tie up the property? And I'm still trying to figure what can be down with the property if I can acquire it.
You want to get an attorney with commercial real estate experience to draw you up a purchase contract with contingencies (time for due diligence, escape clauses, etc). Are you trying to purchase this for yourself or trying to wholesale it?
Well, I was trying to purchase it for my own investment but wasn't to sure on what I can do with this property so Id be interested in wholesaling it to make some profits.
How much does it usually cost to get a lawyer to draw up some papers?
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