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

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.

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