All Forum Posts by: Ash Patel

You can fill in only the parts of the form that you are comfortable with and see if that is good enough.  At the end of the day, a good tenant landlord relationship is crucial.  If you are having this much friction, I would pass.  Find a cool landlord like me!

The best in the business would be @Joe Fairless.  He has a program where he mentors people in multi-family syndication.  

Are you a single tenant NNN lessee?

Bro,  If you are representing properties in the $1B range, you should have a network already.

Love the concept.  Would love to hear more.

@Joel Owens - As always, thanks for dropping the knowledge to educate all of us.  Great perspective.  It is interesting to see how a lot of these big box buildings get re-purposed.

In spaces like this, I have had great success with CL ads.  Out of curiosity, how are the FB ads working?  I once offered a guy a commission if he could get a retail space rented.  He put over 300 CL ads out in multiple states and was successful.  He targeted a ton of different businesses, dog groomers, classic car showroom, warehouse, thrift store etc.

My opinion is I wouldn't tailor the space to a particular type of business.  Let the tenant decide and take the buildout off the rent.

@Rob Yadrick - I think you are onto a great idea. An event venue with adjoining rooms. Kudo's for thinking outside of the box. I often pull the trigger based in gut and figure out the logistics later. The returns may be delayed but I would much rather do exciting projects vs run of the mill CRE. Example, Just purchased five run down buildings in a broken river town with a declining demographic. No idea how I am going to make it work but it will.

To answer your question, yes bring an experienced commercial contractor with you.  Keep us posted, this looks like a fun project.

There are a lot of new HHS and Medicare laws that are making it advantageous to contain services within the hospital building or within so many feet of the property (ie. free standing surgery centers).  Imagine who lobbied for those?  For that reason, I have seen a lot of smaller medical buildings near hospitals that are being foreclosed upon.  One would think that they would be full from natural expansion but that is definitely not the case.  Hospital systems are also buying up physician practices then building new medical centers.

One big problem (bubble) is that real estate expenses don't hit non-profit hospital P&L's the same way they would a for profit.  This is one reason why all over the midwest new medical centers are popping up at an unsustainable rate.

I would avoid this building.

@Edward Salazar - 

On the first case, all of the tenants were new.  The rents were discounted for the first year to fill the building.  The 10 cap was calculated using the discounted year one rates.  Year two rents have gone up significantly.  The point here is that I should have easily reached that valuation.  The building also had a $700k build cost.  

The appraiser only has access to the property sales data, not the previous appraisals.  I gave him the $870 appraisal to show that the building was undervalued when I purchased it.  Like Dave Foster stated, appraisers all over are gun shy because they were a big part of the 2008 crash.  

On a separate note, you are on the right track in finding the next property before you sell this one.  @Dave Foster is in your backyard and can walk you through the 1031 process.