hello all i am in need of a bit of advice
i met with a few like minded biz people over the weekend and was networking my tail off. :bobble
i ran across this lady and her husband who would like to purchase some commercial property to place their trucking company on . from what she stated they are looking to build kind of like a truck stop and just need the land to do so . she stated she already has the modulars which in her words are pre-made buildings.
she stated that they had been trying to buy a piece of land off of the freeway in our local area however the realtor was giving them the runaround and was not submitting their offers . from my understanding that is unethical and illegal ( dont hold me to that) although he had the listing for some years now.
anyways she asked if i could do anything to help her find a piece of land to build her truckstop on so naturally i said SURE however i have not done a commercial deal before and i would like some insight on to how i can put something together so they are happy and we all win that is my goal.
i am researching to find properties i have looked on loopnet and found a few so how do i approch this potential deal .
what do i need to look for and how to structure .
i am looking to make a good deal for them and not look like i have a bag over my head :anon
i know there are some very talented and knowledgeable individuals here and for those i thank you in advance .
Since your not a licensed realtor you can't take them on as clients and get paid by commission!
However this will be somewhat tough as there are a lot of parameters to pay close attention to!
First you need to make a list of questions you need answers from your buyer on? These questions represent the different facets of there business and what they intend to create? Do they have a bank letter of credit or a mortgage pre-approval for the commercial land purchase?
You need to have a long conversation with the county on zoning? What’s legal and allowed? Ingress / egress? Drainage? Fire hydraunts and fire / life / safety code for service facilities? Are pre-made modular buildings even allowed for a trucking company / truck stop? A lot to store trucks is significantly different than a diesel fuel service station! Which is it?
How many acres are you talking? How much can they spend? I am guessing they want a long escrow to obtain planning, zoning and building approvals prior to closing escrow?
Since transactional lending is virtually non existant for commercial property deals your best bet is a contract assignment!
You will spend dozens and dozens of hours on due dilligence!
Your customer needs the targeted assistance of a commercial real estate broker. Location, Location, Location become critical in these kind of transactions. Many legal hurdles lay hidden when building on raw land. The construction project will become expensive and hard cash will become an issue. Do the cheap homework now.
Plan the budget the customers want to spend on the purchase. Plan the budget to build and develop the land to spec. Plan the capital needs of the operation as the company becomes operational. Years 1 thru 5 are critical planning years.
The customer should speak to some ongoing operators of truck stops to gain knowledge of the ups and downs to expect from this industry.
Financing will be expensive. Ways to speed the process along include the anticipation of documentation basic to the industry: 3 years tax returns, 3 months bank and investment statements, social security cards, drivers license, proforma analysis of the project from a qualified party. If speed is key hard money may come into play, and lots of capital will be needed. Safe to expect 35% down and 65% financing in the optimal circumstance. But if the customer has time to complete the process correctly, they can save money an obtain traditional commercial financing.
Plan, Plan, Plan.
Hope this helps