All Forum Posts by: Al M.
Al M. has started 2 posts and replied 35 times.
Post: Anyone investing in EV charging stations (other than stocks)?
- Lender
- Los Angeles, CA
- Posts 39
- Votes 15
@Henry Clark Moving the car may not be an issue since the station itself may charge if a car passes its limit. For example, Tesla superchargers next to our place do that through the app.
Post: Pros and Cons of using a Mortgage broker
- Lender
- Los Angeles, CA
- Posts 39
- Votes 15
Quote from @Kevin Pfeil:
@Leo R. Thanks for the advice! Very good points with not all brokers are created equal. I guess the most logical question is how did you find a good one for yourself? I am looking on findamortgagebroker.com but I'm not sure how to tell the different brokers apart. There's a solid list of brokers for the Madison area, however I'm only seeing one person who has an actual review. What would you recommend in trying to find a solid broker?
As a commercial mortgage broker I can tell you that In my experience, like attracts like. Meaning that like minded people end up working together.
So reach out to folks that seem like you you would like to work with, then set up a call and get to know them and their approach. Trust your gut and you’ll know when there’s a good match.
Post: After over 30 Residential purchases I am moving to Commercial
- Lender
- Los Angeles, CA
- Posts 39
- Votes 15
Quote from @Joshua Austin:
Quote from @Henry Clark:
Commercial is a wide range of products. Bowling alley, parking lot, Medical offices, Self storage, warehouses, MFH (move up in doors), Subdivisions, etc.
A. Since your just starting, recommend you start from your Strengths. Reading your profile. Deacon, Father of 3 girls, Longshoreman, SFH. You already understand all four of these fields, thus you have credibility in those areas. Commercial is a lot about credibility.
B. Just like you did for SFH start doing deal analysis. Go to Loopnet or Crexi and start picking different types of property and doing deal analysis.
C. Deacon background- look at new or old church properties, or campgrounds.
D. Father- dentists, orthodontists, dancing, taekwondo, tumbling, softball, etc. Office or retail complexes.
E. Longshoreman- trucking, truck washing, truck parking, offloading/staging, railcar, etc. Loopnet, 00 80 Hwy Garden City, GA. What would a Longshoreman see in this property? Plus they are Nasty, I hate Triangles and so does everyone else. Figure out how to make them work. Truck or container storage. Property looks low or wet, dig out the corners for ponds and use the fill to make rectangular property.
F. SFH or MFH- subdivisions, see my post on Journeys End or Silver Lake. Don't do the houses, do the lots. Take a junk piece of ground and make it beautiful. LoopNet 00 Staley Ave, Savannah, GA. 5.5 acres $550,000 pre-approved for 17 SFH. We are charging $100,000 to $130,000 for 2 acres in the middle of the countryside. How much would 17 lots in Savannah go for? What is your development cost? Or get rezoned so you can do Boat and RV storage. Its next to a vehicle storage area already. Lay some engineering fabric down and some oyster shell if they allow and you're in business.
Always look for nasty properties and figure out to add value. Everyone else is looking for good properties they can visualize.
Lots of golden advice there brother. Thanks for sharing and taking the time to respond! The commercial property I close next week is definately based on my experience in trucking and freight as a longshoreman the tenant came from my relationship at church. Solid advice.
@Joshua Austin - I always enjoy reading comments from @Henry Clark. Always gives great advice!
Post: Osage Beach, Missouri Commercial Lender
- Lender
- Los Angeles, CA
- Posts 39
- Votes 15
Quote from @Adam Bartling:
@Simcha Davidman I am going to trying and bring you back to what matters. What is most important, is "Who CAN Fund Your Deal".
Every lender has their own underwriting criteria, not all lenders do all loans nor all asset types.
I can look into it if you like or you can tell me "kick rocks"
Here are the basics that you must cover:
Executive Summary
This should be a complete, extensive overview of the project that includes:
Description of Property:
Address, project name, estimated value, number of units, occupancy, etc.
Legal Owner:
Entity and individuals which own the property or to be created.
Loan Amount & Use of Funds:
Debt owed, other liens on the property, uses of cash.
Date of Purchase & Price:
How much cash does the borrower have invested?
Debt Service:
Current debt on property (including terms and if current), current NOI, 3-yr pro forma NOI and
any stabilization notes or key events.
Sources & Uses:
Explain how and where the funds will be used, including source of your investment funds and
funds already invested in the project.
The Story:
Give us a clear picture of what is going on. What is the situation, and why should we finance the project?
Color Photos:
Provide pictures of the current condition of the property to give us a better idea of the nature of
the project that we are financing.
Sponsor Resume and Bios
We need to know about each and every Principal in the transaction. We want to know about their background, level of experience, position and connection relative to this project.
@Adam Bartling I love how you’ve broken this out!
Post: We're converting a Piggly Wiggly grocery store to Self Storage...
- Lender
- Los Angeles, CA
- Posts 39
- Votes 15
@Clint Harris and @Rinku Patel… love what you’re doing. There’s so much opportunity in SS. Our company arranges a lot of SS financing. If you guys ever want to chat, please drop me a note. Would love to be a partner in your grow!
Btw, I’ve done over $1B of SS financing throughout my career, so this is one of my favorite asset types!
Post: Self-Storage Fund for non-accredited persons
- Lender
- Los Angeles, CA
- Posts 39
- Votes 15
Quote from @Jared W Smith:
As the post title says, I am interested in joining a fund which invest in commercial real estate, specifically self-storage facilities. I am not an accredited investor which I know limits options. bonus points if the fund you recommend is one you’re a part of. Thanks in advance
I personally love self storage and work on financing a lot of them. I think some funds under a certain regulation allow a few number of non accredited investors. You can always ask the GP of a self storage deal that you’re interested in if the offering allows for non credited investors.
Post: Triple Net Lease Renewal - Questions
- Lender
- Los Angeles, CA
- Posts 39
- Votes 15
I think it depends on your comfort level with details and level of desired involvement. Also on the financial size. If it’s a sizable deal, outsource and spend that time saved making more money doing wear you like. If the cost is an issue that’s a different story.
Post: Triple Net Lease Renewal - Questions
- Lender
- Los Angeles, CA
- Posts 39
- Votes 15
I think it depends on your comfort level with details and level of desired involvement. Also on the financial size. If it’s a sizable deal, outsource and spend that time saved making more money doing wear you like. If the cost is an issue that’s a different story.
Post: Absolute NNN Diligence Question
- Lender
- Los Angeles, CA
- Posts 39
- Votes 15
The items @John McKee mentioned are great. The quality of the tenant will drive a lot of this stuff and can also override some of DD items.
Post: Outdoor Storage Lease.
- Lender
- Los Angeles, CA
- Posts 39
- Votes 15
Hi Justin. This may not be the suggestion you’re looking for, but I always recommend to speak to a local real estate attorney. I understand this may not be for everyone. There are numerous laws depending on the jurisdiction so I always suggest, if you can, go through a local attorney to make sure it’s drawn up correctly.