Land Opportunity...

[CWMan]

A local bank recently contacted me regarding the empty lot next to my wash. Through a series of events, the bank now owns it, and needless to say does not want to!

My focus for some time has been paying down the note on my wash as it seems only the bank (same bank incidently) is making money (7.5%).

Can anyone offer general advice?

I have dreams of expanding someday, which would require more land, but maybe it's more prudent to keep my money and keep cutting that principal balance.

Also, how can I determine the fair maket value of the land? Bank wants $52k. Where can I find comps?

It's not a great time for banks to own real estate, so I could haggle it down some I'm sure.

Thanks in advance.

 

[Waxman]

I'd say this is a great opportunity to pick up some land cheap as well as refinance your whole place, new land+carwash. 7.5% is high today and I believe $$ can be had much cheaper. If the location is superb, land is an excellent investment.

You'll need a commercial appraisal, which will cost some bucks. The bank will want to use their appraiser but will charge you. That will give you the comps you desire, plus valuate your existing carwash and land it's on.

I just went through the commercial appraisal process and have some advice if you'd like to contact me privately. Good luck.

 

[bedford]

This is a great opportunity you most probably will never get again. I've been at this stuff for a long time. Haggle with the bank and come up with a new and better rate on your existing mortgage and roll the two into one. Start lower than you are willing to go and keep pushing for all you can get. I wouldn't worry to much about the comps, this is worth more to you than anyone else. DON'T LET THIS OPPORTUNITY GO BY, or you will kick yourself later! Also,Get that rate way down. They'll tell you they can't, but there full of it.

 

[I.B. Washincars]

I think this is a great opportunity and you should probably jump on it. I would also push to get it all rolled into one mortgage at a MUCH lower rate. Less than two weeks ago I got 6% locked in for 10 years. A friend in a nearby town got 5 1/2% locked in for 10 years. I'd bet 10 bucks to a dog turd that if you offered to take it off their hands for 5 1/2% on the whole kit and kaboodle you'll be the new owner. Try it and see how bad they don't want to own that land.

 

[pitzerwm]

One quick way is to check with the county ans see what it is appraised at. Usually, it is 20% lower than its worth. You can just walk into any realitor and ask what bare land is selling for. Don't assume that the bank is helping you, they are helping themselves. Find the guy that lost it and find out his numbers. I don't know that I would tie the loans together, but people here have been getting 6+ loans, so get your interest lowered in the process. Some people say that commercial land/buildings are going to be hit with the sub prime issues too, so start talking to people that have money and are doing land deals. You might find that it isn't that good of a deal today but in 6 months it will be better. You need to get in with some movers and shakers of your town to understand what is happening. Also, make sure that there are no restrictions or easements on that land that will make it useless for your purpose. I had a guy give me the lot next to my laundrymat for $5K, turned out it was polluted so it was my headache. I explained that to a friend and gave it to him. He still has it, 20 years later.

 

[Greg Pack]

Assuming you have a good parcel and this lot has road frontage, It likely makes your entire parcel more valuable. In the future someone may want to tear down the wash and build a strip mall. Or maybe you decide to turn the wash into a multi profit center with laundrymat, etc.