Damon Posted August 1, 2021 Share Posted August 1, 2021 Lets say you see a warehouse for sale and it's going for pretty cheap. But, the reason it's so cheap, is due to the quality of the place. Maybe there's mold, and damage that needs to be addressed. For the right price, would you purchase a property like this? Or would you pass? I ask, because there is a warehouse near me for sale, and I want to buy it up. But, I worry that it will need a ton of repairs. Is it worth it? 1 Quote Link to comment Share on other sites More sharing options...
James Posted August 3, 2021 Share Posted August 3, 2021 It really depends on how much NOI I think I am going to be able to get out of the property. Once I figure that out I can make an educated guess on what I want to pay for it and how much capital is going to be required to fix it. That is the cool thing about real estate is things can always be fixed. If its a lost cause it will likely be priced that way but if you have plan to be able to make it make more money then maybe you have found a golden nugget. Only you know the potential of the warehouse based off the local area and current demand for that kind of space. So the question is can you procure the building and make it produce positive net income for you? Quote Link to comment Share on other sites More sharing options...
Stacey Posted August 3, 2021 Share Posted August 3, 2021 I have a friend who is dating someone that recently bought an old warehouse. It was actually a warehouse that was turned into a gym but closed down because of COVID. He got such a good deal he was thinking the same as you... What is wrong with it? It turns out smaller warehouses are not desired by companies like Amazon and smaller businesses were impacted from 2020's virus so the market for them is not good. This is why you can find them much cheaper than just a few years ago with minimal issues or repairs needed. 1 Quote Link to comment Share on other sites More sharing options...
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