All Forum Posts by: Aaron Xie

Haha, not rude at all. She has a couple of close female friends running spa stores in Northern California (silicon valley). They have pretty royal and high-income clients and good cash flow (according to her friends). And that's something my wife has always been enthusiastic about, so I get to let her at least try it. 

I googled a few, and they cost anywhere from $30k to $500k. I don't know how to appraise these businesses, and what would be a fair deal and what would be a great deal. 

Hi, BPers, my wife is interested in investing in a beauty/spa store in Southern California. We are quite new to investing in business. So any idea on where to look for such deals, and what we should pay special attention to? Any advice will be greatly appreciated. 

Thanks, @William E., for the link.

@Joel Owens, the seller has provided all due diligence files on day one. there are so many files and I try to read each file carefully but it takes a long time. So far I have found the following problems:

(1) The survey shows that the sizeof the unit is over-stated in the contract. They count in the floor area of an unfinished mezzanine (850sqft), which is on top of the office. Also, the loading dock is within a truck well of 750 sqft. So that is a total of 1600 sqft unusable area.

(2) The pre-sale physical examination done by the seller shows that the air conditioning is at end of life, the roof needs maintenance, building needs new paint in 5 years, paving needs a sealcoat and restripe. 

I will try to renegotiate the price with the 1600 sqft deducted from the total area, and factor in the required repair. That's a 20% drop in price. We will see. 

Thanks for all the replies, guys. It's very appreciated. 

It's a condo unit in a light industrial warehouse building. My agent is familiar with the seller and the building, as she has closed another unit in March. 

The seller has provided the relevant due delinquency files, and the survey shows that the actual square footage is 12% smaller than advertised. 

Luckily I have not make the deposit. Will contact my agent to renegotiate the price or we will pass. 

A quick question: Is condo vs non-condo a big factor in determining the price, as for residential? 

It's my first time buying an industrial warehouse in Southern California. Now the offer is accepted. We have one month to remove non-financial contingencies, and then another half month to remove the  mortgage contingency, and then another half month for closing. So if everything works out fine, we will close in two months. 

My questions is what should I do in the next two months? My agent told me the mortgage lender will do all the inspections (physical, phase I environmental, hazardous, soil, governmental approvals, title, survey, lien, etc.)  Sounds like I can just sit there waiting to hear from the lender whether it passes all the inspections, and whether we finally get his approval on mortgage. 

Is that right? I think there should be some due diligence on my part. So could anyone give me a step-by-step instruction on what to do between offer acceptance and closing? Or let me know where I can find this information. Thanks a lot. 

I'm about to buy a warehouse in Southern California for our company's own use. I have three options on which entity holds the property:

(1) buy the warehouse directly under our current company

(2) Set up a LLC, buy the warehouse under the LLC, and then rent it to my current company

(3) Same as (2) above, but with a INC

I would like to understand the pros and cons of the different options, and be more than happy to get your thought on this. Please let me know if more info is needed. Thanks in advance. 

I have created an account, and when I put in my credit card info, it did not pass. It failed several times. Did anyone have similar issues?

The tenant wants to put a tub in the back yard. 

They will pay for the purchase, installation, usage and maintenance of the tub. They will also be responsible for any possible damage to the house (such as leakage). When they move, they will take it with them, fill the land, and put new sod on the ground. 

I did not see any problem with that, so have verbally agree with it. But would like to post it here to get a second thought from BPers before we put it on paper. Thanks in advance. 

Thanks, Mike L.!

Could anyone help explain this simple term to me? Thanks.