I did need to borrow the down payment, but I am all set at this point. Buying comm property, the banks would not allow seller carry back which is what we had for a down pymnt. Do you lend??
Happy to help if I can... I am a couple years new at this also. Let me know what specifics I can help with.
I do own a couple investment properties and in the process of buying commercial.
I should mention that my intent is to split a portion of the property off during the long close and sell it for at least half the purchase price of the total parcel.
The property is held in a trust, has been in the family for over 30 yrs and has been on the market for clsoe to 2yrs. Part of the issue with the long listing may have to do with the property being under the "Williamson Act", so any zoning conversion is out.
In an area where 3000sq. ft. homes on 5 acres goes for 1.2 to 2M, this property is attractive.
esentially - reduce my cost basis. I want the land for my personal use. Most 1-5 acre lots in the area are selling around $500k - $1M. If I can acquire 20-30 Acres for the same price it makes sense to me. Also should be noted that the homes in the area on that much property sell for $2.5M +
I think your answer to Nancy gives a good clue. I would check if I can offer to buy subject to reserch and availability of at least part of the land suitable for grape farming, and of course the financing. Considering the land being on the market for 2 years, a person with your background should not have problem to convince them that you are a serious buyer.
Consider making the seller your partner in the deal and just explain this is going to take some time to put together. If the seller has waited for two years they may be open to a way of finally selling this property with the possibility of making more profits being a partner in the deal.
She is asking $26,500 an acre for ag land when commercial is worth $22,000? Surely there is somewhere else suitable that is owned by someone reasonable?
She is sitting on a prime piece of real estate and she knows it. The water lines and utilities are right in back of the property therefore we can tap into the city well and sewer saving a ton on the front end. After speaking with an appraiser today the commercial land is going 12-30,000 an acre.
What I am thinking is offering her 2million for her property, and 1 million for the other 189 acres. This will allow me to draw instant equity in the 189 acres at closing. I can then set up her share with 15% down and 71/2% interest amortized over 30 years with a 10 year balloon.
What do you think?
Do you need a down payment or are you looking to invest a down payment?
I did need to borrow the down payment, but I am all set at this point. Buying comm property, the banks would not allow seller carry back which is what we had for a down pymnt. Do you lend??
Would you like to share some info on the deal for those of us who are learning the ropes? We all really appreciate.
Thanks
Would you like to share some info on the deal for those of us who are learning the ropes? We all really appreciate.
Thanks
Happy to help if I can... I am a couple years new at this also. Let me know what specifics I can help with.
I do own a couple investment properties and in the process of buying commercial.
I should mention that my intent is to split a portion of the property off during the long close and sell it for at least half the purchase price of the total parcel.
The property is held in a trust, has been in the family for over 30 yrs and has been on the market for clsoe to 2yrs. Part of the issue with the long listing may have to do with the property being under the "Williamson Act", so any zoning conversion is out.
In an area where 3000sq. ft. homes on 5 acres goes for 1.2 to 2M, this property is attractive.
If the property is on the market for 2 years, what will you do to make it saleable ? Just dividing in half or whatever portion will do it ?
esentially - reduce my cost basis. I want the land for my personal use. Most 1-5 acre lots in the area are selling around $500k - $1M. If I can acquire 20-30 Acres for the same price it makes sense to me. Also should be noted that the homes in the area on that much property sell for $2.5M +
I think your answer to Nancy gives a good clue. I would check if I can offer to buy subject to reserch and availability of at least part of the land suitable for grape farming, and of course the financing. Considering the land being on the market for 2 years, a person with your background should not have problem to convince them that you are a serious buyer.
Consider making the seller your partner in the deal and just explain this is going to take some time to put together. If the seller has waited for two years they may be open to a way of finally selling this property with the possibility of making more profits being a partner in the deal.
Robert
[addsig]
She is asking $26,500 an acre for ag land when commercial is worth $22,000? Surely there is somewhere else suitable that is owned by someone reasonable?
Chris
She is sitting on a prime piece of real estate and she knows it. The water lines and utilities are right in back of the property therefore we can tap into the city well and sewer saving a ton on the front end. After speaking with an appraiser today the commercial land is going 12-30,000 an acre.
What I am thinking is offering her 2million for her property, and 1 million for the other 189 acres. This will allow me to draw instant equity in the 189 acres at closing. I can then set up her share with 15% down and 71/2% interest amortized over 30 years with a 10 year balloon.
What do you think?