I recetnly got my 90 year old grandfather to agree to sell me his 30,000sq foot building and a few land lots. My goal is to build a 100,000 sq foot retail store.
He is willing to sell me it to me a much lower cost than what it is appraised for. I am projecting that I am going to need to make 600,000 in improvemetns and updates, (Geothermal, solar, possible wind energry solutions) and retail build out.
1.) Is there a way to benfit from the hidden equity being that he is sellign it to me $100,000`s cheaper than it could bring on the open market? I could probably turn around and sell the building however my dream is to build my business it.
2.) What if he transfered it into my name and I then just borrowed against the value of the building and pay`ed him? If he transfer it wouldn`t I Get the same PROPERTY TAX rate that he got 50+ years ago? LEGAL? Then used the rest of the money to SBA the improvements? or refinanced it somehow ? (there has to be a famiy advantage hidden in here someplace)
3.) I am also planning on renting part of the building out to a church for Sunday school program. Monsanto is currently renting the building and the land and lots. They are to be done in a month however I called them and they told me that they would not be done for possible another 6 months. I could have them also rent the building and pay the morgage payments while I have it reconstucted.
4.) I should also be able to use TIFF money to decrease the rebuilding costs. I am not sure exactly what I have to do or how much money TIFF should be able to provide.
On the other side I am looking at taking a sba 504c loan package? Does anyone have experiance in taking on of these or know risks of taking a loan.
Any other suggestions on how to properly get things done or things i should be thinking about purchasing this property and making a good choice.