Questions to ask and Documents to verify to invest in commercial property to be constructed (borrow, value)

[l0ll1]

Hello All,

First time trying to invest, as a _limited partner_, in commercial real estate - constructing and selling office and retail space. Wondering what all documents to review and what sort of questions to ask? Developer says 100% return on investment in 5 years if all goes well [no economic downturn that is and all spaces sell out]. Not sure whether it is too good to be true. Where do I get growth trend (current land values/office condo values/rents etc) data by zip code?

Would converting from agriculture land to commercial increase land value by 4 times? Land equity shown by the developer is 4 times what wcad.org is showing (as agriculture land).


Appreciate your insights.

Thanks!

[adjusterjack]

Originally Posted by l0ll1

Hello All,

First time trying to invest, as a _limited partner_, in commercial real estate - constructing and selling office and retail space. Wondering what all documents to review and what sort of questions to ask?

That you have to come to strangers on the internet to ask, suggests that you are a naïve amateur who shouldn't be making that kind of investment. Hire a real estate lawyer to guide you through this.

Originally Posted by l0ll1

Developer says 100% return on investment in 5 years if all goes well [no economic downturn that is and all spaces sell out].

And, of course, he won't guarantee it. My friend, that's the usual line of bulls--t that a con man uses in an effort to part you from your money.

Originally Posted by l0ll1

Not sure whether it is too good to be true.

If it sounds too good to be true, it's too good to be true.

Originally Posted by l0ll1

Where do I get growth trend (current land values/office condo values/rents etc) data by zip code?

Google. But they won't do you any good.

Originally Posted by l0ll1

Would converting from agriculture land to commercial increase land value by 4 times?

Certainly possible.

Originally Posted by l0ll1

Land equity shown by the developer is 4 times what wcad.org is showing (as agriculture land).

Shown by the developer. The guy who wants to part you from your money. Statistics can be skewed to show anything a con man wants them to show.

Originally Posted by l0ll1

Appreciate your insights.

Run, don't walk, away from this scam.


If it was for real, the developer would already have the money or would be able to borrow it.


Put your money someplace safe.

[l0ll1]

Thank You! Yes, I'm a novice! I was not able to find what docs that I've to review, but after posting here simply searching on 'limited partner' and commercial investment got me tons of info...https://www.biggerpockets.com/search...utf8=%E2%9C%93

Yea, right now I'm running away from it for 2 reason...1) very minimal information provided 2) when i asked for more and details, reply was to worry about my returns and rest we will take care (ouch!)...nobody can say that to the investor shelling few tens of grands!