Posted this in outdoor forum and realize I should've in here:
Howdy, wanted to seek the advice of the outdoor board.
Long story short, I buy and sell used Ag/Construction equipment in the northern DFW/Texoma area. As of late I have started to really scale my operation to the point I can't run it all in my 1.5 acre lot and 30x50 shop (I don't store anything outside the shop due to deed restrictions).
I put out some feelers and found a piece of land (6 acres) about 15 minutes away from me that has a brand new 40x40 shop I can use to store and show my equipment. This lot is in a desirable spot close to town and surrounded by nicer custom homes on 3-5 acre lots.
The gentleman who owns it has it as a third property and doesn't get out there much and said when he saw my post he was interested in maybe working something out to put the land to use. He is open to selling (owner financing at 5% interest with 10% down) or leasing it but neither of us could figure out how leasing would work as far as how much is fair a month, what term to lock in a lease for, who handles maintenance, mowing, etc
He said he would likely list it for $525,000 or $90k/acre if he were to sell it (lot next door is an acre and went for $175k sold by one of the custom home builders), my question is what would be fair for leasing payments and term based on those numbers?
Additionally, what sort of contracts would we need in place and do we need to get an attorney or realtor involved for a leasing transaction or owner financing?
Note, he was agreeable to any of the following once we figure out a monthly rate:
- Monthly payments for 3-12 months
- Quarterly terms, so paying up front every three months.
- First right of refusal to purchase and if I decline, 90 days notice to vacate property if he is going to sell.
- Lease to own (not sure how this works)
Thanks for any insight!
Howdy, wanted to seek the advice of the outdoor board.
Long story short, I buy and sell used Ag/Construction equipment in the northern DFW/Texoma area. As of late I have started to really scale my operation to the point I can't run it all in my 1.5 acre lot and 30x50 shop (I don't store anything outside the shop due to deed restrictions).
I put out some feelers and found a piece of land (6 acres) about 15 minutes away from me that has a brand new 40x40 shop I can use to store and show my equipment. This lot is in a desirable spot close to town and surrounded by nicer custom homes on 3-5 acre lots.
The gentleman who owns it has it as a third property and doesn't get out there much and said when he saw my post he was interested in maybe working something out to put the land to use. He is open to selling (owner financing at 5% interest with 10% down) or leasing it but neither of us could figure out how leasing would work as far as how much is fair a month, what term to lock in a lease for, who handles maintenance, mowing, etc
He said he would likely list it for $525,000 or $90k/acre if he were to sell it (lot next door is an acre and went for $175k sold by one of the custom home builders), my question is what would be fair for leasing payments and term based on those numbers?
Additionally, what sort of contracts would we need in place and do we need to get an attorney or realtor involved for a leasing transaction or owner financing?
Note, he was agreeable to any of the following once we figure out a monthly rate:
- Monthly payments for 3-12 months
- Quarterly terms, so paying up front every three months.
- First right of refusal to purchase and if I decline, 90 days notice to vacate property if he is going to sell.
- Lease to own (not sure how this works)
Thanks for any insight!
