All Forum Posts by: Ash Patel

Hustle harder than anyone else.  That's how I pick my brokers.  Get to truly know your clients/prospects so you can have meaningful conversations with them and bring them appropriate deals.  I've had brokers call me and pretend they may have someone interested in a property of mine but really are just filling their database with my info.  I admire that level of hustle.  When a deal comes in, be passionate like its your money.  Just don't be like everyone else because you will be average.  My question to you is what will you do to differentiate yourself?

@Shital Thakkar - The short term leases and co-sharing seem like a full time job unless there was a great system in place.  I finished each space with minimal upgrades.  Paint, carpet/flooring and lights.  I interviewed a good commercial broker and was told that I would have to build out each tenant space to the point where I would not make any money in the first three years of the lease.  I went about it myself and offered deeply discounted one year leases.  Each tenant was responsible for upgrading their own space.  I think this is huge because they are encouraged to renew their leases because of all the work they put into their suite.  I was able to fill each space with photographers, hair salon, insurance agent, recording studio, background check company, cpa, medical massage and a 3000 sq ft floor to a non-profit dance studio.

I often bring the group together for happy hours on my dime, networking meetings etc.  I believe the tenants get a better sense of community by interacting and sharing ideas with each other.  I didn't move any walls and the spaces range from 200 sq ft to 3000 sq ft.  The building has been 100% stable since first being filled.  

Now my rents range from $8-14/ft and rising. A building that I have less than $350k into yields a $51k annual NOI.

 True that!  

Yes.  I have invested in five different deals with Ashcroft Capital.  I have no affiliation with them but because of my level of investment, I have met both founding partners, one of whom is @Joe Fairless.  I have also visited our investments in Dallas, toured each property and interviewed the management company's/onsite managers.  What was most impressive is that they can do complete unit renovations for $5-7k/apt depending on the level of finish.  They also use mostly in house staff for renovations/management.  It may sound like I rep them but I assure you I am simply an investor.  You do have to be an accredited investor with this company.  I would love to hear who other people are using.

@Leah M.

@Leah M. - There is a fair amount of info on BP about 1031's and syndications.  It seems to depend on how the structures were setup.  I haven't gotten to that point but the company that I use has stated, when they sell a property, they will attempt to line up another so investors can 1031 their winnings.  

@Michael Le is on point.  It comes down to how hard you want to work for those extra returns.  If you are content passively making 18% vs working your a$$ off for 30% then syndication is the way to go.  If this was 2014, I doubt we would be talking much about syndication.

 You certainly can do a 1031.  

@Sunitha Alli - Does the property break even today? If not, how far from break even is it? Are there a lot of vacancies close by or is this property an anomaly? I am assuming this is a class b- area? What is your experience with CRE? Do you plan on managing the property yourself?

Hey @Sidro Felix I have lived in Cincinnati for 20 years.  I will help where I can.

@Steven Mitchell - Because the market is high, I think that leads to more money going into reputable syndications.  If I can make a 25% return by actively managing a property or an 18-20% return in a syndication, I am going the syndication route.  Because I haven't been able to find a great deal on my own and I believe the market is near a peak, I have been selling my commercial properties and reinvesting the money in MF syndications.  My thought is that when they pay out in five years, there may be more buying opportunities out there.