Commercial Building
I've more or less pulled out of the Hart Building project. With the bid from the sprinkler company coming in almost near the value of the building, I was told by my banker that I'd have to likely come up with a 50% down payment. So that would be about $150k that I'd need in assets. Oofda! Running through the numbers, my mortgage payment would alone would be almost $1,700 a month. Then operating costs are close to double that. In order for the building to work for me (with my down payment), I'd need 85% occupancy at the time of sale. I sent a letter to the seller last week outlining the budget problems. I suggested that a non-traditional purchase such as a purchased partnership/phased purchase approach might be an option, and offered to visit with her over the phone or in person if she's interested. I also offered to help her develop a restoration plan, if she chose to keep the building, based on the research I had done in anticipation of a purchase.
These results make me feel pretty sad. The community really needs this building to work. It's the largest commercial structure on Main Street, and without it's space, the commercial district would be in serious decline. The current owner has operated the building 2 years in a row without putting any maintenance into the building, which further elevates the risk to the building itself. It's been on the market for more than 3 years now, and the likely property wheelers and dealers in town won't touch it. The building is a good business opportunity with someone with enough cash. It was making nearly $70k/year, $30k/year net, before the Fire Marshall vacated the residential units. It's just not a fast equity flip-able building that the real estate market has become so used to during the last decade. It's more along the lines of a life-time project.
A and I are moving on to other things (more of that later). I'm wistfully thinking about the Hart Building, and wondering how I can still make it fit into my life sometime in the not too distant future. It's a good business opportunity, that could fit very well into my other dreams.
Tickets have been purchased for soup! I'm very excited to see everyone! NoraNickers! It's been 4 years since we've seen you. I'm really looking forward to giving you a huge hug.
These results make me feel pretty sad. The community really needs this building to work. It's the largest commercial structure on Main Street, and without it's space, the commercial district would be in serious decline. The current owner has operated the building 2 years in a row without putting any maintenance into the building, which further elevates the risk to the building itself. It's been on the market for more than 3 years now, and the likely property wheelers and dealers in town won't touch it. The building is a good business opportunity with someone with enough cash. It was making nearly $70k/year, $30k/year net, before the Fire Marshall vacated the residential units. It's just not a fast equity flip-able building that the real estate market has become so used to during the last decade. It's more along the lines of a life-time project.
A and I are moving on to other things (more of that later). I'm wistfully thinking about the Hart Building, and wondering how I can still make it fit into my life sometime in the not too distant future. It's a good business opportunity, that could fit very well into my other dreams.
Tickets have been purchased for soup! I'm very excited to see everyone! NoraNickers! It's been 4 years since we've seen you. I'm really looking forward to giving you a huge hug.