Interesting Twist

Interesting Twist

Eastern NC, NC · Member since 2013 · 34 posts · 5 votes

I started mailing letters and calling numbers about 2 weeks ago. I called a gentleman who had a large amount of property in my area and asked if he was interested in gaining more property.
The gentleman declined and said he was getting older and was winding down, about 30 minutes goes by and I get another call from the gentleman. He tells me he would actually like to start selling all of his properties, He starts telling me the ones he would like to sell first and how he does not want to list them with a real estate agent.
Some of his properties are prime, fast food chain's, bus station, funeral home and office space near the court house.
I bought Kent's "Find Cash Buyers now" But almost all the people listed on it work for a real estate company.
I am not sure how to go about commercial real estate could anyone help me out? I got a realtor he looked it over, but like I said the gentleman does not want to list the properties.

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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
13y

Sounds to me like what you are trying to do for this seller would require a real estate license!

Private Mortgage Financing Partners, LLC
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  • Abingdon, MD · Member since 2013 · 193 posts · 60 votes
    13y

    Have you considered reaching out to the tenants? They already have a vested interest in the property.
    It's funny that he owns a bus station. Around here all our bus stations are owned by the transit authorities.

  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    13y

    Sounds to me like what you are trying to do for this seller would require a real estate license!

    Private Mortgage Financing Partners, LLC
  • Investor · Central America, Panama · Member since 2010 · 423 posts · 293 votes
    13y

    Just because he wants to sell does not mean there's a deal there.

    If the property is worth $200,000 but he wants $400,000 - there's no meat!

    Does he want cash? Will he sell with seller financing? What terms? What's the cash flow? What's the CAP rate?

    Get numbers first. Determine if there is a DEAL there. If there is, get an OPTION, then do the marketing to find a buyer.

    The tenants are a possibility but they rarely have the money or credit to buy.

    Foreign investors may be your best bet. China, Australia and South America. Do you know how to market to them?

    Keep in mind that commercial properties can by bought dirt cheap through the FDIC -- and that's your competition.

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    Jackie, where are good sources to find these?

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    13y

    Jon, you might start with the FDIC, RTO web site.

    Not sure how big Emerald Isle is, not that sure chaing down investors in China would be interest in the small stuff in a smallish town.

    The tenants, as mentioned are prime suspects to anchor a deal.

    This is what happens with buy and hold investors, you don't really retire on rentals you retire from rentals, at some point.

    Chances are these will be older buildings is my guess, probably acquired long ago which means the owner's basis is low and gains will be high.

    This sets the stage to do great deal, as the best thing for a retiring owner in this situation is to seller finance it. The notes provide an annuity income and they will reduce the tax bite as ooposed to cash. He will also get a better rate on his money than he would after tax receiving a lump sum and investing in some alternative investment. He is familiar with the property, so he knows his collateral.

    Now comes the hard part, what does he want, what's the market value and what about a down payment?

    I'm guessing, like most here, there is no down payment. In that case a down payment might be had from the tenants.....tell you how to do that after you answer the questions..... :)

  • Eastern NC, NC · Member since 2013 · 34 posts · 5 votes
    13y

    Ill start from the top and do my best to answer the questions.
    The bus station was a Grayhound station, it actually has 3 buildings on the lot, a large building that rents out about 4 spots in it I think. The other building is a bread store.
    We have have public transit but its in its infancy.
    Not sure why I would need a real estate lic for this but if I do, I have a realtor on my team that would help me.
    None of the property is in Emerald Isle, I just live on the beach. All of the property is in Onslow county, it has a quality that most area do not, the Marines. They are all have a V.A. backing which means approved loans, not saying they all take them.
    46% of the county rents, I'm sure you all know that is a higher then normal number.
    Commercial Property in Onlsow is roaring as well, in the last year and a half Patriot 12 theater, Hampton Inn, Khol's, Longhorn's, and 2 More hotels are being built.
    I have no idea how to find overseas investors, I was aiming for SFR's not this. But I am willing to improvise and adapt to whatever is thrown at me. I am willing to take any help or direction I can get, as I am sure it gainful to everyone involved.

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    You can find international buyers right here on BiggerPockets.

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    13y

    Okay, thecolor of the brick won't help much, we need numbers to tie things down.

    consider buying the bulk of what he has with seller financing, puttine him in a good income position, then you can take on tenants. If tenants in the commercial buildings are there they may be interested in buying on an installment contrcat as well, the commercial stuff, you can get a down from them (landlords usually overlook tenants as buyers, sometimes they hit them up). You may also be able to pledge good leases with lease financing to obtain cash for the deal.

    Don't know where you are so can't say that much. Never really sold internationally, I can see all kinds of time consuming issues, hope they speak english too. Doubt you're looking at a quick closing in shipping documents back and forth, out of state is bad enough for me. :)

  • Fukuoka, Fukuoka · Member since 2012 · 148 posts · 29 votes
    13y

    I'd second the international buyers option - LinkedIn has a large number of excellent groups for overseas property opportunities. Just make sure you screen the people rather than send them all over to your seller to screen - he's bound to get sick of you quick if you do ;)

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