Possible Land/Building Purchase

[Dstosh]

I am currently running out of room. I have about 15k saved up. A property for sale in my area is in a decent location, 5 minutes from my current home about the same from my mom house and my dads house. A bit north east from my main service location, but its close to home so no loss of time there. The shop is huge, 7500 Sf. Really way more than I need. But there is some one renting part of it now, If I purchased it I would try to continue that relationship to defer part of the mortgage payment. The asking price is around 110k. The building is also for rent, So worst case scenario, I could use the money I have towards rent. It seems like a no brainer to me, but does anyone have any advice? 100k seems like a lot, but compared to others in different areas on this site it seems like a good deal. Thoughts/Opinions?

Thanks

[grass-scapes]

Financing commercial real estate is tough for some. IF you could swing it, I would buy it. Just think, if you bought it and your business went under, you could still rent it out.

[meets1]

Buy it. For a 110K that is around $14.67 / sq ft. That is cheap even for me in IOWA! I don't how much land is involved but for 7500Sq Ft I would be purchasing today!

[bushog]

How much can your company alone afford to pay monthly to lease a place for your business??

[ICS]

If you can afford it, then its a no brainer. You did not mention the age of the building or the type of structure itself. I know a few people in commercial real estate and they all pretty much say the same thing, if it is over 20yrs old stay away unless you can pill any of the problems that could arise from: HVAC, parking lot and other maintenance area's. I would sub divide any unused space and rent it out. You can buy the building under a new "investment company" name and rent it to yourself also. Good luck and let us know. Post a pic if possible. Are you near any of the ski area's.

[Dstosh]

The building is kind of like a pole barn/building with metal sides. It used to be an autobody shop. The web listing says it was built in '75. It has a small parking area, nothing to big, as far as HVAC, nothing really. I would Imagine it just has those garage style heaters in there. I am going to look it on saturday morning. I will get pics up then.

[Jpocket]

If you can afford it, then its a no brainer. You did not mention the age of the building or the type of structure itself. I know a few people in commercial real estate and they all pretty much say the same thing, if it is over 20yrs old stay away unless you can pill any of the problems that could arise from: HVAC, parking lot and other maintenance area's. I would sub divide any unused space and rent it out. You can buy the building under a new "investment company" name and rent it to yourself also. Good luck and let us know. Post a pic if possible. Are you near any of the ski area's.

Whos your friend? Donald Trump?

Buildings are just getting broke in after 20years. also around here you can hardly buy a tent to live in for 100k

[Lawnworks]

Talk to your accountant and ask him... he probably knows better what financial position you are in.

[ICS]

Whos your friend? Donald Trump?

Buildings are just getting broke in after 20years. also around here you can hardly buy a tent to live in for 100k

I would not say Donald Trump........... One kinda looks like the Donald though. But they are the two wealthiest people that I know. A few of the other things that they have in common.
1. Modest people in the way they present themselves and the way they live (the one does have a multi-million dollar estate, but he raised his kids to earn everything they have, one nurse, one account and one doc that pulls in 650k a year, so they have the work ethic, instead of the spoiled ethic if you know what I mean)
2. They both built commercial buildings and leased them for 15-20yrs before selling.
3. They both try to do everything in-house, but know when to spend the money to have something done right.
4. They both work more hours then there is in a day, 7 days a week.
5. They both said to stay away from buildings over 20yrs in you are purchasing unless you can take a 20k hit if you need a new furnace or ac unit.
6. Besides knowing their industry through and through, they are the type you like to meet for breakfast on the weekends just to observe and take in anything you can.

[PROCUT1]

Wow what a different in pricing in different areas.

A shop like that around this part of NY would be 600,000 +

[bigclawnman]

Wow where I live I could not even buy a vacant lot for even half of that. Plus this comes with building on it, and you can even rent out some of it. I would go for it.

[Dstosh]

Went and checked it out today. It is pretty big. I would only need about 1/3 of it. But the rent is going for $5/Sf per month. Which is too much for me to pay to rent it. There isnt a ton of land with the property, only some arround the sides and behind. That leaves me little options to dump yardwaste and such. I could make it work for the right price, but Its not perfect.

[Epic lawn care]

Went and checked it out today. It is pretty big. I would only need about 1/3 of it. But the rent is going for $5/Sf per month. Which is too much for me to pay to rent it. There isnt a ton of land with the property, only some arround the sides and behind. That leaves me little options to dump yardwaste and such. I could make it work for the right price, but Its not perfect.

Did you get pictures?

[Dstosh]

No, I could try and get some tomorrow. It was kind of an uncomfortable situation, if you know how relators are.

[bushog]

Kinda confused here. How much are they asking for rent for that 7,500sq. ft shop per month ??

[Dstosh]

Well. The realtor, had the infomation wrong. Its $5/SqFt per year. It ends up being .41 Cents per month. You dont have to lease out the whole thing. I might just rent out about 2000-2500 sf.

[supercuts]

thats like $700/month morgage. you can rent the side out for that!! BUY BUY BUY!!. I wish i could find a deal like that around me. here they are like $300k for something liek that

[NMS0219]

the building your talking about sounds like one I looked at a month ago. If it is I walked away from it (has structual issues) and bought vacant land in depew and now I'm waiting for the permits to build a new shop/office. Everything got the green light just have to wait for the "offical" paperwork. If all goes well I'll be moving into the new shop at the end of march.

[Dstosh]

Well the thing is, I am really out of room, so I need to do something quick. I am proabably going to do the vacant land thing, once somethign pops up, I wont be able to build on it right away, but I will see about leasing that building for a bit.

[ICS]

the building your talking about sounds like one I looked at a month ago. If it is I walked away from it (has structual issues) and bought vacant land in depew and now I'm waiting for the permits to build a new shop/office. Everything got the green light just have to wait for the "offical" paperwork. If all goes well I'll be moving into the new shop at the end of march.

You guys should figure it out if it is the same building so you can inform him on what you found.

[ICS]

dstosh,

I would look into buying. For that purchase price and you even just renting it out to the one existing tenant your mortgage would be next to nill.