 |
Has A Vision |
| |
 |
Dear Edith: I want to invest in real estate.There’s this huge plot of land by the main road.It has an old church that’s been closed for ten years.They thought of putting a rec center there but still it’s empty.Recently I had a vision. Get a 20-year lease on the whole tract of land.Build a mini-mall or a group of one-story stores around a huge parking lot and rent out the store spaces, to things like lawyers offices, bank branches, hairdressers, diners, travel agents, bail bondsmen, HR Block, etc.
Here’s where I’m stumped.Where do I find out the going rate for store space by the square foot in this area?If the County agrees to this, what kind of bank would loan me the money?My credit is spotless, but I’ve never taken out a loan before.I don’t want to put up my small home as a surety because it’s all I have.Lastly, could I hire a property management service to collect rents and oversee the maintenance?
This area is far from where I live.This is my dream.I would love to have passive income from rental property.But I have no idea how to start.Any advice would be greatly appreciated.Please keep me anonymous, but send an answer to my email address. |
| |
| |
 |
I'm afraid knowing the going rate for commercial space in that area is the least of your problems.Development like the kind you speak of is a pretty big project for someone who has no experience.I don't see how you could do it.I wouldn't know where to begin myself, and I've had forty years' experience in real estate.What you’re talking about is no job for amateurs.
Here are a few questions, for instance: Do you know who owns the land?Do you know if it's zoned for the kind of development you envision?Do you realize any buildings you constructed would remain the property of the landowner after a 20-year lease expired? And—perhaps most important-- how come experienced developers in that area haven’t done something with the land already?
You can always talk to your own bank, and to others in your area, to see if they have any interest in your vision.You could phone developers in your area and ask for an appointment with one of their officers, to discuss the matter.
At the least, you’d need an experienced partner, and I'm afraid all you have to bring to a partnership at this point is an idea.It might be different if you already owned the land.
Sorry to pour cold water on your dream.If you do go ahead and investigate, let me know what you find out.I'm interested. |
| |
|
Edith
Originally published on October 6, 2006 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
