Quite frequently we come across certain deals which we call “no brainers” — these are properties which we think simply must sell because it makes no sense for buyers NOT to make the purchase.

Here’s an example.  A commercial property will be sold to the high bidder at $100,000 or above. Of the six units in this building which is located on a busy street, three of them are rented for a total of $2000 per month. The rents are slightly below market value, the tenants have a solid payment history and although they are month-to-month, they would be willing to sign long term leases at increased rental rates if asked.

The property already has positive cashflow and it is 50% vacant. A new owner would have several options — move in and operate his or her own business; bump the rents; renovate and resell; hold, rent and make a tidy monthly income; a combination of any of these; more.

So, where are the buyers for this deal? Will they be lined up on auction day for the opportunity to compete for this property? We’ll see. But smart buyers are buying now while property values are at their lowest.

Tags: auction, cashflow, Investment

This entry was posted on Monday, February 8th, 2010 at 12:01 pm and is filed under Auctions, General, Investment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.