All Forum Posts by: Ronald Rohde

To be clear, I'm not interested in buying it. The owner called about a roof replacement, and when he heard the price there was some sticker shock. The tenants are great, but the owner doesn't have cash on hand to pay over $800K to pay for it without getting the bank involved. I simply asked him if he would consider selling it. His dad bought it almost 30 years ago and it's an inherited property. With the lease they have in place it'd be a very appealing property for a buyer, especially with a brand new TPO roof. 

I understand that there is WAY more involved with the sale of a property like this...I'm simply wondering if there are buyers out there who get properties under contract knowing the roof needs replacing on a property like this. I'm simply trying to give the owner good information, he said he may consider putting a new roof on it (however that may happen) if I could bring him a buyer.

I knew you would chime in Ronald!  The thing that's hard to figure out for me is the demand for space, because you're right it's not just E-commerce.  What is the demand for distribution, contracting businesses, manufacturing, Truck storage, flex space etc. This variety of tenants is a good thing, but figuring out the demand of each one has me scratching my head.  

Quote from @Teri Feeney Styers:

Write two documents with the tenant who wants to purchase. The first is a lease with a monthly rent of $5500 or more (which is what the other people offered you). This lets them get into the building and start creating a financial track record. The second document is a purchase contract. Make the closing date work for both obtaining an SBA loan AND meeting 1031 guidelines. This will give you monthly income now, time to watch the local market and loosly identify a replacement property if that is your goal. Possible downsides? The tenant doesn't get their SBA loan and they just stay your tenant - you have a lease in place. The other possible downside is that the purchase transaction takes place and you are unable to find an appropriate replacement in time. In which case you pay the tax you were willing to pay today. 

I actually wrote up a lease option yesterday.. and a purchase contract.  Have them 90 days to get approved and 6 months to close at $800k… my request was they move in on the 1st and give me first and security.  I guess we either close or I have a tenant good either way 

@Neil Cronkrite I chose multifamily because of where the market is headed and how I see the current interest rates. Understanding that the dollar may collapse and it being even harder for folks to own homes versus renting.

So what does a typical checklist look like when looking at class B?  What does Class A have that Class B doesn't?  Is the demand solely related to E-commerce?  Amazon said they were pulling back.  What say ye?