Buying a commercial property

Discussion in 'Real Estate' started by mtowncyclone13, Aug 11, 2015.

  1. mtowncyclone13

    mtowncyclone13 Well-Known Member

    Oct 10, 2012
    grundy center
    +3,061 / 185 / -0
    Can anyone with commercial real estate experience tell help me out? There is a small commercial center for sale with a few national tenants. Asking price is about $1m and annual NOI is 90k. A) Is this a good deal, B) how does one get financing for something like as a new investor, and C) what other info should I look for if I want to move forward?
  2. fathead04

    fathead04 New Member

    Nov 14, 2008
    +0 / 0 / -0
    Talk with your local banker to find out his requirements, thoughts, and if he would even loan out the money on it. He'll have plenty of questions for you. To be prepared to answer some of his questions I would talk with the realtor the property is listed through.
    You will want to the following:

    Income and expense reports for at least the last 3 years on the property
    Current lease information, (years, payment, termination policy, space, improvements, utilities)
    Age of all major items (roof, ac, furnace, etc)
    If possible the occupancy rate for the property over the last 3 or more years

    Having that info should help make your meeting with a lender go smoother and put a little more faith in them that you know what your are doing.
  3. IowaRealEstate

    IowaRealEstate Active Member

    Oct 15, 2012
    Realtor with RE/MAX
    +127 / 0 / -0

    The bank is likely going to want to see at least $250,000 from you as a down payment.

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