I've got a 19 acre property at my fingertips, but I'm a little lost on how to work this agreement out. The property belongs to my next door neighbor and they want me to have it. It includes some retail space that's currently rented, a couple garage/shops that are currently rented to a landscaping company, a SFH that just went vacant and needs a little bit of rehab, and 12+ acres of untouched developable land.
I'm confident I want the property, but I don't currently have the down payment money to put towards this one because of some other deals going on. I want to lock it in so nobody else beats me to it.
My solution is a triple net lease to purchase. It gives me 12 months to learn and improve the property and raise the down payment I need for traditional financing. Also thinking I can put the rent paid during the 12 months towards the down payment when the 12 months is up.
Am I on the right track? Any insight or advice?
I would begin collecting all rents and it would cash flow about $100 as it currently sits, but we've got much bigger plans so I'm not worried about it being tight at first.
@Jay Judkins sounds like a good opportunity and love the creative track. Can you share more numbers? with this not being a single classification I could see it working but may explore land contract or owner financing? I have experience with SF but not doing lease options on commericial. couldnt see why not though, love creative ways.
Thanks for the reply!
Ask is $340,000.
Looks like purchase price will settle at $325,000.
Current rents are: 2 shops (500), 3/2 SFH (800), and the retail store (500) for a total of $1,800/month Gross.
Tenants are paying all utilities so expenses are just taxes and routine maintenance. The shop tenant is a mowing company and they keep everything mowed as part of the agreement.
I own a billboard business and plan on installing two billboards by the highway for an additional monthly income of ~$1,000. Boards are cheap to install - about $1,200 a piece and that will be covered by my other business.