Vacant Commercial Land Purchase And Sale Contract: Fill & Download for Free

#CommercialRealEstate #PropertyInvestment Time is an ally for young people. Similar to early stock investing.Likely a younger person will start by investing in 5 or more units of multifamily apartments. Considered commercial real estate.A down payment will be pooled friends and family investment money. A natural gravitation as this product type has most familiarity.Mixed use or restaurant, retail, industrial, office, medical, development land are much more expensive at higher purchase price points. Also, there are nuance complexities. Not recommended for the first time beginner investor.A Single Family Residence home up to four units (duplex, triplex, fourplex) are considered residential. Not commercial real estate.Three ways to make money. Buy:A 100% stabilized investment. The building is fully leased to tenants, a turnkey apartment investment. Contract rent is in place at market levels. The #CapRate or capitalization rate of return or return on investment is lowest.100% vacant improvements, partially vacant/some tenants or occupied with short term month-to-month occupied doors. Roll up the sleeves cash injection for renovation, rehab, re-tenanting is required. Time, energy, money is involved. The cap rate is moderately to substantially higher due to value add upside of a future, higher ROI.Vacant commercial development land. Ground up new construction development of a multifamily building. Start to finish absorption income/occupancy until fully leased at Fair Market Rent. Highest risk, highest capitalization rate of return.TONY KIM213.747.0378Quora: https://www.quora.com/profile/Tony-Kim-180Los Angeles, California Commercial Real Estate Sales and Leasing professionalListing Broker specialistCommercial Property Leasing Agent Advisor

People in the United States, being the freedom loving folks we are, believe when we purchase something it is ours to do with as we wish once the purchase is finalized. This is not always true.If you are Italian, Black, Irish, Jewish, Catholic, Asian, Protestant or even just plain old Caucasian, at some point in time a contract was written with the express intent of keeping you out of a community.Those contracts were real estate contracts and those exclusions were/are called covenants.A covenant is a promise in a written contract or a deed of real property. ... Covenants which run with the land, such as permanent easement of access or restrictions on use, are binding on future owners of the property.Note that last sentence, “are binding on future owners of the property”. Racial and religious covenants were widespread in the early 20th century, preventing perceived undesirables from moving into a neighborhood by restricting who could by a house.A mapping project shows how racial discrimination in housing persists in DCThankfully discriminatory deed restrictions were ruled unconstitutional by the U.S. Supreme Court in 1948, in the case of Shelley v. Kraemer. But if you go to your local downtown and search the records sometimes the covenants still exist as purging the hundreds of thousands of written records was impossible in the age before computers.Covenants do still exist and are still legally enforceable though, just not the racist ones. Probably the biggest user of covenants are Churches. A lot of beautiful churches sit vacant and people wonder why. The answer is usually the covenants placed on the church are so restrictive there is not much you can do with the building. Here is an example of one by the Catholic Church. https://www.cimls.com/data_sale/documents/document2_123927.pdfPrivate parties also put restrictive covenants into property sales. For instance (and this has come up recently) you own a lot of land by a body of water, you want to sell some of the land but you dont want the view from your house to be obstructed, when you sell the acre in front of your house you can put a restriction in the contract that the buyer can not build any home higher then one story, or that otherwise restricts the view of your home. That is perfectly legal and binding.In commercial real estate, deed restrictions are used as a business tactic. When some companies permanently close businesses and sell their properties, they attach restrictions to the sites that prohibit rivals from using the land and buildings. Walmart does this a lot when they close a store in favor of a super store they are opening nearby. The deed restrictions usually prohibit sales to other big box retailers.Former owner Caesars Entertainment closed the Showboat in June 2014, deciding that while it was still profitable, it wasn't profitable enough. They placed deed restrictions on the building and the new owner is not allowed to do any casino or sports wagering.Last summer when I went the old casino floor was empty and kind of creepy at night.Showboat Atlantic CityNow whether you consider covenants ridiculous is another matter. Jack Kitty has decided if we are ever to sell our house he wants a deed restriction on dog owners. I told him that was ridiculous but he is still insisting on it as I type this.Go figureJack Kitty on my deskNo dogs, dog owners, or people that like dogs. Keep our neighborhood kitty!

Not all lenders provide financing for undeveloped land. Developed land (i.e. with a home, apartment(s), or a commercial building) have intrinic value.Undeveloped land loans are likely to require a larger escrow deposit than convential or FHA, etc. loans.To secure an undeveloped loan the lender will need to know your intended use (i.e. home, commercial building, etc.) access to utilities, sewer, local zoning regulations, etc.For example, I recently assisted a client in a vacant land purchase of 34 acres for one home site. The sale of the land and the financing were contigent upon local zoning approval of the type and size of the home they wanted to build, access to utilities, septic approval, etc.This process involves an active and involved buyer who can meet with local officials to secure approval of what they want to build. We met with local officials several times to identify what information they required. Some of the information they required generated costs for the buyer, i.e. land survey, soil percs for the septic, location of the home on the land. We scheduled a meeting with local zoning officials to secure final written approval.This process took 3 month’s and the purchase of the land was contingent on final approval. The sales contract I wrote and its related conditions were to ensure that my client could build what they want and where they want on the property. We also enlisted an local attorney to protect our client’s interests. The bottom line is you should never buy undeveloped land unless you get local approval to build what you want and can use the property for your intended use.Remember that the local annual taxes on the 34 acres of undeveloped land was $400/year. Once the home is completed and the certified of occupany is granted and home and land are assessed the taxes are estimated to be $12,000/year.By the way, once the approval was granted we estimated it’ll take 9 to 12 months to build the home.Many people are attracted to undeveloped land due to its low cost vs. land with a house. Very often the purchase of the land is a small percentage of the total cost. Most potential buyers decide not to buy vacant land once they understand what’s required.