Need help with commercial RE purchase

[Theben]

Does anyone here know anything about real estate negotiations?

I talked to someone about a property for a restaurant. The land and building are $600,000, give or take. So I agreed to meet him next week and "hammer out a plan" for the lot.

I know absolutely nothing about these things and this guy sells property for a living. I'd like to come out of this with my shirt and shoes. The one thing going in my favor (2 actually) is I know he's been sitting on this for over a year and his last deal fell through. He also wants an inclusion to buy back the property in case an adjacent lot sells and the buyer wants this lot also (obviously we'll be compensated), but the back lot has bad visibility so I don't think that's a problem.

If anyone has any advice I'm willing to listen. And yes I'm serious.

[chequita guevara]

Yeah, I know someone who knows all about it. Why don't you give him a call? He goes by the name of DAD.

[Tuberski]

ACK!

[Theben]

I am plannig to talk to him and mom about it, since she was a RE agent.

I figured I'd troll for advice here beforehand.

[snoopy369]

Originally posted by Comrade Snuggles
Yeah, I know someone who knows all about it. Why don't you give him a call? He goes by the name of DAD.

The dangers of posting on a site with family...

[chequita guevara]

Is this for your own Papa Johns or are you gonna be a tool and open another store for your baby mama?

[Tuberski]

I'm voting tool.

ACK!

[rah]

I'd want a sliding buy back deal to take into account any improvements or investment you make into your portion.

[Jon Miller]

I really enjoyed RE4.

JM

[Theben]

Originally posted by rah
I'd want a sliding buy back deal to take into account any improvements or investment you make into your portion.

I don't know what sliding buy back means, but yeah if there's any improvements made we'd be compensated for those, plus an additional amount.

As for my 'tool' status, if something can benefit my daughter directly or indirectly I'll at least look into it. The rest momma can do herself. This is to relocate, not open a new store and work for her(god forbid).

[chequita guevara]

[Lancer]

Listen Theben, seriously this is what you do.

Offer him $400,000 and no clauses about the other lot, take it or leave it. You don't want the potential of losing the place hanging over your head.

He can ask for the moon, you can offer dirt. That's RE.

Furthermore, keep looking. Something better being sold by someone more desperate will likely come along. It's a buyers market.

Never be in a rush. Tell him you'll get back to him while looking so unenthusiastic...opppss, gotta run.

[chequita guevara]

nm

[BunnyGrrl]

why r you looking at commercial real estate? Res real estate is hard enough to figure out. Back out while u still have the shirt on ur back.

[Lancer]

Chez Snuggles is right. Particularly when it comes to restaurants. There's an old saying, the guy that builds a restaurant loses his ass. The guy that buys it breaks even, the guy that buys it from him finally makes money. In other words, the price just keeps dropping. That's not a bad thing as long as you are the third guy.