Ok. I have my first visit to a property. The property can be residential or commercial. The area is up and coming and it looks as if it is set up better to be turned into a commercial property due to all the new stores in area and I do not see any residential homes in a 2 mi radius of the property, there are homes around but they are pretty far apart. There is a waffle house, home depot, att&t, and other commercial bldgs. I have not did a contract yet so I am nervous about this. Do anyone have any advice for me? Thanks in advance! Oh and it sits off a highway. And by the way I am wanting to wholesale this deal. He is asking $160,000 and there is prob $40 to $60,000 for repairs. He said that a Bojangles was looking to purchase his property and a lady that will like to use it for pet grooming. He wants cash fast because of sickness and hospital bills. Do I look for commercial buyers the same as SFR and Multi Fam investors? I was not setting myself up for this but it has fell in my lap and I will like to put it under contract.
Well don't put it under contract just for the sake of having something... You'll have to get a hold of investors who buy commercial buildings cash and see if this fits their criteria. Good luck finding those people though.
Commercial/retail is a completely different ball game. Don't waste too much time on this one.
Originally posted by @Pratik P. :
Why do you say not to waste my time with this?
@Pratik P. is just being practical because normally it takes awhile to connect with commercial buyers(or any buyers for that matter). But obstacles aside buyers come running when its a good deal period. so run the numbers on repairs, possible tenants for the property, Cash on cash returns. Make sure what your looking at is actually a deal. If it has meat on the bones for them to make a nice profit( depends on the profit criteria) then they will give you a shot. #1 make sure you have a deal worth having #2 market the deal to REIA's and other places until you find a interested buyer.
even if you dont find one for that property in 6months(and the contract falls through after 6 months) you would have gained a lot of knowledge and connections that could help further your goals and career in the business. Good luck!
Originally posted by @Eugene Beard :
@Pratik P. Thanks that is really great advice. I am currently researching the property looking into zoning, ROI etc. I am thinking that it can be used by a small medical practice, veterinary, dental. etc. I am searching zoning, and different financial strategies like subject 2, AITD, NNN, etc.
Wholesaling commercial is a lot more than I expected but like you said this is great knowledge and a door opener for more than one wholesaling range for me to participate in.