OfflineI had a couple call me from Eastern Wis with a problem.
They built in 1999 a 6,000 sq ft day care center with an attached residential property. They live on an Alpaca farm, and rent out the house, that is part of the day care. All was fine till their daughter was born with multiple health problems and has had heart surgery. They had to shut down the day care because their daughter could catch something and she could die from any infections.
They had started paying on it and now borrowed from it to pay for medical surgery. I haven't run comps because it is in a small town of under 900 and yet they were overwhelmed with business because there are no other day cares even close.
An investor from out of state put it under contract and he is trying to get $390k for it, and they would get $290k. His contract runs out in 2 weeks.
They will do lease option, land contract anything to just have it not sitting and dragging down their finances. Very nice couple and are upset that this investor tells them not to bother him with questions, says when he gets a buyer at his price, he will tell them.
They will work out anything with me. All fire codes are met and building safety and was told it could also be used for assisted living.
They owe 325k but will take the loss to just have it not sitting.
Any inputs??
I will talk with her on Sunday afternoon and see what some options are. But in this area, they are near larger towns, how could we find out if any health providers would consider it. I could contact local clinics and ask, but any trick to advertising this differently, or commercially or whatever?!
Her husband is a mortgage broker in their town.
And they want to hear some options.
Thanks
Sandi
Question on cash flow business/residental property
Posted on: Sat, 12/18/2010 - 19:03
Question on cash flow business/residental property
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- by sandiboots
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Hi
I am re posting this to see if anyone has any ideas, or options I should consider.
They are willing to do any options and were willing to come down on price and take the loss, just can't afford to have it sit.
I am meeting with them after the holidays to look at the property.
But would like some input, and if this sounds like a strong possibility.
Will try to run comps, (Lost my computer, just got it back today.)but is it different as a business & resident together.
They did have an appraisal of $370 but that was last spring.
Any ideas??
Thanks, I do appreciate any thoughts or advice.
Sandi
There may be a lot of options as there is more than one way to skin a cat. I would love to see some pictures of the place and have a discussion regarding the community as a whole. Sometimes small towns are really hard to find solutions. I know it might not be until after the Holidays, but I'll put a note on my desk to help you with this one and see what we can do. PM me and I'll give you a call.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Thank you would love any help on this one, I feel it is a good opportunity. I don't want to stay living in Wisconsin, or I myself would open an assisted living. I worked in the medical field for 28yrs.
Also I don't do anything for the holidays. Sisters are out of state, and my parents passed away years ago. So I actually hike in the forest and will work on real estate. So I am home and can talk anytime.
Will send you a PM on my contact if you want to talk.
Michelle, the owner said she would send me pictures, but she has a family and they raise Alpacas too, so told her she could wait till Sunday or Monday to send them.
Thanks again and Merry Christmas!
Sandi
Make sure you look in all the areas where the property specifics would lead you. There will be Alpaca associations, breeders, clothing manufacturers, etc, where there could be buyers available. Make sure to exhaust all of those, in addition to possible changes in use for other animals as well. Check with Equestrian organizations or other exotic farm groups like Emus. Just a couple of thoughts!
The Alpaca farm is not on this same property. Is that what you meant? It is seperate. And the daycare has a 2 bedroom home as part of the daycare. They have had it inspected for an assisted living, and could do that.
Thanks for the post, and just for the record, I was asked a few years ago if I wanted to go in on an Alpace farm and help raise them. I know there is good money in them. But after over 58yrs of livestock and horses, my body needed the rest! Alpacas are an excellent investment today.
Sandi