I am a noob in the real estate arena and have been more into getting started in mh deals. But, I ran across this potential deal involving a storage facility on just under 2 acres. The particulars of the property and pricing are in the ad that I have posted below. The statements by the seller regarding the area, property, and facilities/improvements are very positive and optimistic, which is to be expected, but how accurate are they? My current thinking on this deal is as follows:
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Find out the real value of the property, is it what is claimed by the seller? Along with any other information related to storage business in that area/region and future growth projections. Best way to do that?
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Seller is asking for $210k cash plus take over existing loan amount of $340k. I would need to finance the 210k if I were to pursue the deal, best option a hard money loan? I have up to 30k to work with of my own cash, but would really prefer to do this on OPM as much as possible.
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My son-in-law owns constrution company that builds storage units. I can expand beyond the current number of units at a cost of 50% or lower than the going rates per sq/ft for constructing storage units. If there is a good market demand for storage in that area, I would think that it shouldnt be too hard to get a loan for expansion based on the much lower construction costs.
Would really appreciate any comments, questions, advice, etc. on this, may also be interested in bird-dogging this and/or partnering. Also any experience/advice regarding other methods of putting together a deal on this kind of investment, limited partnership or similar structures, would be of interest.
Here is the current deal information…
1.75 ACRES NEAR BUSY INTERSTATE WITH OVER $500,000 IN IMPROVEMENTS + CASH FLOWING BUSINESS. THE LAND ALONE IS WORTH $7 A SQUARE FOOT X 75,000 SQUARE FEET = $525,000. THIS INTERSTATE FRONTAGE PROPERTY IS LOCATED IN ONE OF THE FASTEST GROWING CITYS IN THE USA .
WAS PRICED AT $750,000 AND WORTH ALOT MORE BEFORE MY HEART ATTACK. AN INVEST0R HAD THIS PROPERTY TIED UP UNDER CONTRACT FOR 4 1/2 MONTHS. SHE WAS TRYING TO DO A 1031 EXCHANGE, WHICH NEVER HAPPENED–HER FAULT NOT OURS. OUR PRICE IS NOW DRASTICALLY LOWERED FROM WHAT SHE WAS BUYING IT FOR, BECAUSE WE MUST SELL RIGHT NOW. HER CONTRACT HAS JUST RECENTLY EXPIRED. THIS IS WHY IT HAS BEEN ON CL FOR AWHILE. WE COULD RUN AN AD, BUT NOT SELL IT WHILE IT WAS UNDER CONTRACT.
THE GIVEAWAY PRICE NOW IS $210,000 AND TAKE OVER OUR LOW INTEREST NOTE. THIS IS A NON QUALIFYING NOTE. YOU CAN ALSO GET YOUR OWN LOAN OR PAY CASH FOR IT. THIS NOTE IS ABOUT $345,000. THE MONTHLY PAYMENT IS $3300. WE HAVE A NEW SURVEY, NEW TITLE POLICY, NEW PHASE 1 ENVIRONMETAL, AND A NEW LOAN. THIS WILL SAVE YOU YOU ABOUT $10,000 IN CLOSING COST
JUST THE RENT ROLLS MORE THAN TAKE CARE OF THE NOTE AT $6,400 A MONTH WITH 75% CAPACITY. MORE LOW COST MINI WAREHOUSES CAN BE ADDED TO BRING THE RENT ROLLS UP TO WELL OVER $12,000 A MONTH.
OUR HUGE LOSS IS YOUR GAIN. WE HAVE OVER $705,000 INVESTED IN IT. WE ARE LOSING OVER $150,000. THE NO HAGGLE PRICE OF $555,000 IS ALREADY DISCOUNTED 1/2 PRICE TO SELL TODAY AND WE ARE NOT TAKING ANY LESS, SO DONT ASK OR TRY TO GIVE US A LOWBALL CONTRACT UNLESS IT IS FOR $555,000. WE ARE ALSO NOT ACCEPTING ANYMORE 4 1/2 MONTH CONTRACTS. WE ARE VERY MOTIVATED SELLERS.
THEY ARE PUTTING IN A COSTCO RIGHT NOW, AND BUILDING 7500 NEW HOMES BEHIND OUR PROPERTY THAT COST $200,000 TO $450,000 WITH A HOME OWNERS ASSOCIATION, PLUS ANOTHER 10,000 HOMES ON THE OTHER SIDE OF THE INTERSTATE… THIS ALONG WITH ALL THE OTHER CONSTRUCTION GOING ON AT AN UNBELIEVABLE RATE IS REALLY GOING TO OPEN UP THE PROPERTY VALUES IN ROCKWALL, ESPECIALLY AFTER THE ELECTIONS.
THIS PROPERTY GOING TO GO SKY HIGH AFTER THE ELECTIONS IN JANUARY.WE WANT TO WAIT UNTIL JANURARY TO SELL, BUT WE MUST SELL NOW. THIS IS A GOLD MINE THAT WE HAVE PUT ALL THIS VERY HARD WORK / MONEY INTO & HANDING OVER ON OVER ON A SILVER PLATTER TO A VERY LUCKY INVESTER. THE FACT THAT IT IS AN INCOME PRODUCING PROPERTY IS A BIG TIME EXTRA BONUS. THIS PROPERTY WOULD BE WORTH A WHOLE LOT MORE THAN WE ARE ASKING IF IT WAS NOT PRODUCING ANY INCOME AT ALL. OUR PROPERTY IS EASILY WORTH OVER 1 MILLION. THE GUY NEXT DOOR IS ASKING 1.1 MILLION FOR A 8 YEAR OLD BUILDING & A LITTLE OVER 2 ACRES AND IS NOT AN INCOME PRODUCING PROPERTY. EVENTUALLY SOMEBODY WILL BUY IT FOR THAT.
Some mini storages 5 blocks down the street on East I-30 just sold for over 1 million dollars. This is what the listing broker told me that sold them. My mini storages are just as nice and bringing in almost the same amount of income. The investers that bought this property now have it for sale for $1,200,000
THIS PROPERTY HAS NOT YET BEEN ANNEXED BY THE CITY. There is no code enforcement, so you can do whatever improvements you want to. This is a very unique commercial property----The only property for near the Interstate right now ( Except for the 1.1 million property next door ) that has not been annexed by the city. This alone makes this property that much more valuable. IT HAS A 3 BEDROOM 2 BATH MODULAR HOME THAT IS CURRENTLY BEING RENTED THAT CAN ALSO BE USED AS AN COMMERCIAL OFFICE. WE RECENTLY SPENT OVER $15,000 UPGRADING THE HOUSE TO LIKE NEW CONDITION. HALF OF THE LAND AND HOUSE CAN BE HOMESTEADED.
IT HAS A VERY NICE BRAND NEW OFFICE / WAREHOUSE WITH A BATHROOM IN THE FRONT OF THE PROPERTY THAT COST $75,000 INCLUDING ALL UTILITIES. IT ALSO HAS 38 ALMOST NEW WAREHOUSES TOTALING 4000 SQUARE FEET + 2 BRAND NEW 200 SQUARE FOOT OFFICES. BOTH OF THEM ARE ALREADY LEASED OUT. 8 INCH THICK CONCRETE ENTRANCE AND DRIVEWAY. CUSTOM BUILT FENCE WITH WIRELESS OR KEY PAD ENTRANCE ALL THE WAY AROUND THE PROPERTY. THE WHOLE 1.72 ACRES WAS JUST GRADED AND PAVED IN FLEX BASE OVER 8 INCHES THICK FOR HEAVY TRUCKS AT A COST OF $50,000
THIS PROPERTY IS ALMOST NEW AND HAS THE POTENTIAL TO PRODUCE A POSITIVE CASH FLOW FROM MANY DIFFERENT SOURCES BECAUSE OF THE ZONING AND THE IMPROVEMENTS-- 1. INDOOR ANTIQUE CAR STORAGE 2. RV STORAGE 3. BOAT STORAGE 4. OUTDOOR CAR STORAGE 5. TRAILER STORAGE 6. CAR SALES 7. TRAILER SALES 8. TWO OFFICE RENTALS 9. 1500 SQUARE FOOT WAREHOUSE/SHOP RENTAL 10. MINI STORAGE 11. PARK AND SELL RENTAL 12.THREE BEDROOM 2 BATH HOUSE RENTAL THAT CAN ALSO BE USED FOR A COMMERCIAL OFFICE OR BOTH. All these options makes This makes this ( not annexed yet and grand fathered in ) property highly unique and very desirable—cash flow from so many differant sources. This is very important in a questionable economy.