411

Haggling the price on my $1M E2 Mixed Use Building

06:36, Friday 13 January 2012 .. 0 comments .. Link

After a real sad, mad and very bad time, I think I may be running into some light at the end of the tunnel. Following my withdrawal from my purchase of property from Fannie Mae I was amazed to find a stand alone 1750sf 5 bed 2 bath commercial premises in my TEA zone for just $225K. It used to be a residential building. The beauty of the building was that it was truly a steal resembling a residential property but zoned in every way a commercial property. It seemed ready for my 6 bed elderly home. The first tick in the box was that I could utilize my ssas pension to buy it with no problem whatsoever. It was a pension I had not actually entirely created just yet as I was working with my IFA to navigate me in the right direction. The beauty of using a ssas was that the purchase would be entirely tax deductible against my ever growing rental income that was thrusting me relentlessly into a tax bracket that made me feel extremely uncomfortable with our tax system. It had taken quite a while to get hold of the listing agent and eventually I did. I noticed that though he was representing the bank, since the property was an REO he was keen on representing me. Of course he would, he would be getting 5% commission. Lets just say that when I got my agent to represent me in the transaction I lost the property to another buyer which was quite a painful experience. In any event, I am one of those persons that just have to be either looking for or in the process of buying property to feel normal and that is when I found the dream property in North Hollywood. 6 residential units, 6 retail units. Total rental income approximately $95K per annum at a price of $950K. I approached my agent from the onset and asked her to consider writing an offer for me and exhausted from the last failed purchase she told me to ask the seller to give me a concession while ruling her out of the transaction. They have pretty much agreed to knock of 1.5% off the asking price which brings it down to $935K. Sadly as the property is mixed use I cant use my pension to purchase it but I could however borrow funds from my pension to purchase the property over a maximum of 5yrs. What makes it even juicier is that my agent now wants to see if he could get me a chinese bank loan for the balance which the owner is supposed to carry as per his offer. It really makes me feel good to feel that there is no discrimination against me being British, at least no yet.

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Haggling the price on my $1M E2 Mixed Use Building

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