All Forum Posts by: Ash Patel

Check out @Joe Fairless - I have invested in six of his syndications and he also provides consulting on how to become a syndicator for MF.

Outpatient is on fire, new buildings going up all over the place.  Problem, is they are not rewarding landlords, instead, hospital systems are building their own outpatient center.  Non-profit healthcare systems focus on revenue and view their P&L's completely different than for profits.  RE expense is not really given much weight.  

You will learn a lot more by jumping in and making mistakes.  A mentor would be good to have close by.

First step - Stop the bleeding.  I would take each tenant out for drinks/dinner and explain that they have been getting a pass but now its time to enforce the lease and collect cam.  Let them know that they won't be back charged CAM but it will be due each month going forward.  Go by the exact language in the lease.  Your friend probably should find a new line of work.

You are on the right track.  Just keep pounding the pavement.  Maybe find people that are operating a home based business and see if they want to take the next step.  Mom groups are good for this.  Get on all of the local businesses social media pages and get a feel for the vibe of the community.  Speaking at an actual council meeting will get you in front of the town spokes people (gossipers).  

Also offer a high referral bonus for anyone who lands you a tenant.  Enlist your own social circles for that.  Keep us posted!

You can always polish up the areas that will be "permanent".  Exterior, lighting, windows, parking lot.  It does suck to throw money into vacant space.  I would make sure there are dusk to dawn lights so the place doesn't look vacant to people driving by at night.  Perception is huge.

I just purchased 5 buildings in a rural small town but don't have the traffic count you do.  Go to the council meetings, talk to residents as well as business owners.  In a small town, the residents are probably talking about you, use that to your advantage.  Advertise a work/live property.  Offer very flexible terms.  No one wants to be the first and only business in an empty building so the first tenant will need to be enticed.

Build artificial hype.  Schedule mass showings with potential clients.  When you have a potential tenant coming through, let them know who else is interested in the building.  Add really bright dusk to dawn lights that highlight the building and let people know there is new life there.

Hookup with a creative lender and get the deal done.

Would you purchase this property as an investment if your business wasn't located there?  Office condo's (assuming thats what it is) aren't the greatest investments.  

Will your business potentially outgrow the space?  

Are you able to buy it lower than current market based on your rent?

If you purchased it and moved your business, could you rent it at a much higher rate thus increasing the value of the unit and sell or just cash flow?

To reiterate a point that Joel Owens made, the lowest hanging fruit becomes liable for the amount in the event of a default.  The person(s) with the highest net worth and most liquidity will become their target.  There can be another agreement between all of you that makes that person whole by equally sharing the loss.

I also don't think that becoming a guarantor is equivalent to $75k in cash.