Warehouse in a black town? Buerste?
On 2010-09-13, Bob Engelhardt wrote:
What a great looking building. It's not a warehouse though, a warehouse is where stuff is stored, usually temporarily (it comes & goes). A dominant feature of a warehouse is loading docks. Brick is very good, maintenance wise. The maintenance gotcha to be aware of is the roof - flat roofs leak easily & can be money pits. I assume that you used "triple net" as a financial term, not as the leasing form. I would not use a triple net lease - I would want to be responsible for them so that I know they're being paid. "Comparables" are your friends. Both rent-wise and sale wise. What it can rent for is strictly a matter of the market. What is the market? Likewise selling price. But, it doesn't seem likely that the market could be less than 200 - 300k, that is cheap. 7 - 10k insurance HAS to be yearly. I would think that the management of such a building would be trivial. Occasional maintenance, I would think. If he's only owned it 2 years, his mortgage has not been paid down very much at all. Bottom line for me would be my attitude toward the economy. If I saw a healthy economy on the horizon, I'd go for it. If I didn't I wouldn't. I see a moderately healthy (meaning expanding at a slow rate) economy on the horizon. I am sitting on an envelope with the bid, and am not sure if I should proceed or not. I would be bidding $11.55/square foot. i |
Warehouse in a black town? Buerste?
Ignoramus5013 wrote: On 2010-09-13, Bob Engelhardt wrote: What a great looking building. It's not a warehouse though, a warehouse is where stuff is stored, usually temporarily (it comes & goes). A dominant feature of a warehouse is loading docks. Brick is very good, maintenance wise. The maintenance gotcha to be aware of is the roof - flat roofs leak easily & can be money pits. I assume that you used "triple net" as a financial term, not as the leasing form. I would not use a triple net lease - I would want to be responsible for them so that I know they're being paid. "Comparables" are your friends. Both rent-wise and sale wise. What it can rent for is strictly a matter of the market. What is the market? Likewise selling price. But, it doesn't seem likely that the market could be less than 200 - 300k, that is cheap. 7 - 10k insurance HAS to be yearly. I would think that the management of such a building would be trivial. Occasional maintenance, I would think. If he's only owned it 2 years, his mortgage has not been paid down very much at all. Bottom line for me would be my attitude toward the economy. If I saw a healthy economy on the horizon, I'd go for it. If I didn't I wouldn't. I see a moderately healthy (meaning expanding at a slow rate) economy on the horizon. I am sitting on an envelope with the bid, and am not sure if I should proceed or not. I would be bidding $11.55/square foot. i Personally, I wouldn't proceed until I had a firm quote from my insurance agent, fresh environmental report, and some title search info to ensure no hidden issues. With a regular purchase contract you can put contingency clauses in there for such issues, don't think you have those protections with an auction. |
Warehouse in a black town? Buerste?
On Tue, 14 Sep 2010 13:45:42 -0500, Ignoramus5013
wrote: On 2010-09-13, Bob Engelhardt wrote: What a great looking building. It's not a warehouse though, a warehouse is where stuff is stored, usually temporarily (it comes & goes). A dominant feature of a warehouse is loading docks. Brick is very good, maintenance wise. The maintenance gotcha to be aware of is the roof - flat roofs leak easily & can be money pits. I assume that you used "triple net" as a financial term, not as the leasing form. I would not use a triple net lease - I would want to be responsible for them so that I know they're being paid. "Comparables" are your friends. Both rent-wise and sale wise. What it can rent for is strictly a matter of the market. What is the market? Likewise selling price. But, it doesn't seem likely that the market could be less than 200 - 300k, that is cheap. 7 - 10k insurance HAS to be yearly. I would think that the management of such a building would be trivial. Occasional maintenance, I would think. If he's only owned it 2 years, his mortgage has not been paid down very much at all. Bottom line for me would be my attitude toward the economy. If I saw a healthy economy on the horizon, I'd go for it. If I didn't I wouldn't. I see a moderately healthy (meaning expanding at a slow rate) economy on the horizon. I am sitting on an envelope with the bid, and am not sure if I should proceed or not. I would be bidding $11.55/square foot. Good luck with that, Ig. You mentioned rental rates at $2-4/sf. What are the rates in Dalton or the surrounding area? Here in GP they start at $0.50/sf. -- Not merely an absence of noise, Real Silence begins when a reasonable being withdraws from the noise in order to find peace and order in his inner sanctuary. -- Peter Minard |
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