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Updated over 8 years ago on . Most recent reply

User Stats

30
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3
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Mac Usher
  • Rental Property Investor
  • Atlanta, GA
3
Votes |
30
Posts

Help with structuring a commercial purchase deal!

Mac Usher
  • Rental Property Investor
  • Atlanta, GA
Posted

Hi BP Family, 

I am thinking through a potential opportunity for a deal and I would like your insight on different ways to approach it. I'll give you some specifics.

Property:
 Building is 8855 Square Feet
 3-5 Acres of land
 Ideal for a small manufacturing company.
 Will require heavy cleanup and code updates

Financing:
Owner is looking to sell in the former of a Lease Purchase or Direct Sale.
Owner may be in position to Owner Finance.

Purchasing:
I have an interested buy who would like to pay a large down payment and then make monthly payments to finish the purchase over the next 5-7 years.

Me:
I would like to own a portion of the property also for equity reasons but I don't have any cash.

Question:
What are some fair and creative ways to approach this?

Thanks BP!

Most Popular Reply

User Stats

57
Posts
30
Votes
Robert Shaw
  • Investor
  • Madison, NJ
30
Votes |
57
Posts
Robert Shaw
  • Investor
  • Madison, NJ
Replied

If you're putting financing together and sign the loan then you have skin in the game and can ask for a promote percentage. The investor who puts the down pay will be a syndicate investor and will get 80-90% of the profit, and you get 10-20% depending on how good the deal is.

If you don't get the financing then you're a broker/middle man, and can get a referral fee.

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