How do you do a commercial flip worth 2 million dollars if it accidentally fell in my lap?
This happen to me yesterday 06/13/2015... Help Please!
You need to provide some more info.
What is the purchase price, do you have the money or banking/financing relationships, what is the play with the property, have you talked to anyone that can backup the value?
As Steve said, you need much more info rather than just 'how to do a 2M flip'. I would recommend finding the previous CAP rates if you can to see exactly where the price stands with relations to the market its located in. In addition, you would need to estimate the repairs which can be tricky. Do you have a team in place? Appraiser, contractor, loan officer, etc?
All of these will help us determine whether or not the good deal that fell on your lap is actually a good deal, and how to approach it.
I have the buyer and seller ready. It this time I'm trying to get the specs on both 10-20 year lease with fixed rates as well as the purchase price for the location from the RE agent representing the seller. In addition, I need to know if I should present a "disclosure" form to the selling agent who want to know me source along with my fee. Is the acquisition fee for commercial transitions between 1-3%? Should that be payed up front? I have a mentor who I've been working with that I met in the library. He flips house and has done a few leases options, short sale etc. He also owns property, but I don't really know his well enough to trust him... He claims to have a team around he which also includes hard money lenders, rehabbers, attorneys etc.
I still don't understand what you are trying to do? If you have Buyer and Seller and they each have agents what are you bringing to the table? Your transaction fee is for doing what exactly?
Both the buyer and sellers have never met, I'm representing the buyers position and havce control over flipping the property. At this point I'm just gathering the locations specs from the seller CAP RATE, SQFT, PRO FORMA, BACK TAXES, LEASE OPTION AND RATES, ETC. to present to the buyer who'a ready to go. I just need to know more about the commercial contract and my acquisition fee.
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