i have an interesting deal on the table. it’s a first for me so i’m trying to brainstorm various ideas of how to make money.
i have a piece of property under contract for very cheap.
-its in a flood zone (unfortunately)
-the structure on it is a sport shop
-its located in historic district
i sent this out to my buyers for “possible quick sale or JV”. ideally i would like to keep this long term if i could figure out its best use. ive had some investors approach me asking if it can be converted to a single family and then rent it out. i dont think this is ideal considering it floods pretty bad.
another buyer called me and said he would like to make it his weekend project. do some updates, keep it as it is, and run some type of shop out of it. he asked what i meant by a joint venture and if that meant leasing the land. i thought about this and like the idea. since i do not have a track record with this person, it might be better to do something along the lines of this instead of partnering up with a rehab.
that being said, if i were to lease the land:
-what would i charge for this? (is there some rule of thumb?)
-who would pay for the taxes?
-would i be entitled to some of the profit from the store?
as a total side note, i thought of trying to put up a cell phone tower but i doubt that would be possible with historic district.
any suggestions/info welcomed!
