Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
Finally got my first commercial property leased!
4500 sq ft warehouse with offices and 1/2 acre outside storage in Jacksonville FL.
Found it aging on Loopnet in March 2018...threw out an offer for 72k with owner financing. GOT IT!
72k owner financed
10k down
3.0% interest
15 year note, like $313 a month
Insurance $1200 a year
Total invested $15,500.
Cleaned up exterior grounds, did exterior paint and re-blacked the parking area for curb appeal. Hauled off some trash.
Signed a triple net 2 year lease yesterday for $2,000 a month with $1,000 deposit. I gave them a break on deposit because they took it as-is. It's a company that dismantles newer, damaged cars and resells the parts on ebay and other online platforms.
I did not use an agent, I made signs with my number and attached them to the building.
Took a long time to lease but worth the wait.
Off to the next one!!
Rental Property Investor 路 MN 路 Member since 2015 路 186 posts 路 149 votes
7y
That's not uncommon for a commercial building. It took me 8 months one time and in a good location. I'm sure showing it during winter months contributed to this as well. That's why I have this love/hate relationship with commercial buildings. Gotta love NNN and long term leases, but hate long vacancies (sometimes).
Flipper/Rehabber 路 Minneapolis, MN 路 Member since 2016 路 1k+ posts 路 1k+ votes
7y
@Mark Fries congrats on getting it leased. My only concern here is that you have an auto dismantler moving in. Did you consider the possible environmental liability with this type of company? Did you add additional terms to your lease?
Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
7y
@John Woodrich
No..probably should have... It's a risk I'm willing to take plus I was just so excited to get it leased out to be honest.
Hopefully I can crush for a little while before the EPA comes busting down the door!!
Flipper/Rehabber 路 Minneapolis, MN 路 Member since 2016 路 1k+ posts 路 1k+ votes
7y
@Mark Fries completely understand. I have seen some old gas stations and repair facilities that have relatively no value due to the environmental liabilities. You may want to make it clear that you expect the fluids be recycled appropriately. May make sense to take a visit there to make sure they aren't drained onto the floor :)
Rental Property Investor 路 Jacksonville, FL 路 Member since 2008 路 784 posts 路 528 votes
7y
@Mark Fries That is awesome! As others have mentioned, make sure your insurance covers that type of business being in the space. Cars have flammable stuff in them, I don't want to see your building on the local news station because the tenants were stupid. I am sure the EPA will come calling, if not the city, so be ready. Great job though!
Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
7y
@Jack Bobeck
I agree I will go ahead and draft up a letter stating requirements that I have for environmental protection stuff and send it to them certified mail with a receipt so I can track it..and have proof of my leasing policies
Contractor 路 Jacksonville, FL 路 Member since 2017 路 1k+ posts 路 2k+ votes
7y
@Tony Figurelli
Tony, I threw the idea to him...it was aging on loopnet and I just figured he was running out of options....kinda like " something is better than nothing" approach and it worked