All Forum Posts by: Ash Patel

Thank you @Steven McPherson.  @Jessica Zolotorofe - I was able to speak with the top Ohio liquor license attorney and he valued this license at around $15k.  The problem was he found a couple liens against it and an outstanding workers comp claim attached to it.  What was interesting is he is able to get me a clean liquor license for around the same price from another county.  

As far as the adjoining parcels, I can use the same liquor license across multiple buildings as long as patrons can walk from one building to another without having to go outside.

@Mark Creason - That is an older building.  One risk would be if something newer is constructed close by.  On the other hand, if the exterior is not dated relative to its surroundings that is a plus.

Assuming the building is bringing in right around $20k/month right now, that should cover the mortgage.  30% down would be $750k and you will probably need a few hundred in operating funds.   Doing the numbers several different ways, this looks promising.  You can undercut the competition by lowering your $/sq ft significantly for the first few tenants then as the building picks up momentum come closer to market rates.  Its amazing how a few dollars/foot can really sway decisions of mid size companies.

As far as amenities,  I would add a fitness center, possibly a nice break room, and little things that you can put on a marketing brochure.  Dry cleaning service that comes to the building, mobile car wash that comes to the building, option for chef provided meals (from a local caterer), on site maintenance personnel etc.  In lieu of big TI's I would just reduce rent for the first term if possible.

I would recommend pursuing this and see if you can negotiate the price down.  See how eager the bank is to get this off their books.

@Mark Creason - Instead of PM'ing you, I will post here so it can be of value to others.  I have purchased value add office buildings and they are a lot of work.  Based on your numbers, I am assuming this is around 60k sq ft.  

1. How old is the building
2. why is it only 30% full
3. how is the HVAC system?  Recently looked at a 100k sq ft building that was 10% full and the chemicals used in the chiller were not monitored.  This resulted in a $1mm retrofit of every HVAC unit and all the cast iron pipe.
4. Do you have enough time to between now and current lease expirations to make a positive impact and land renewals?
5. how is the building currently managed, what level of full/part time staff?
6. how many parking spots
7. is the building easily sub-divided for smaller offices?
8. what class
9. can you add any amenities to stand out from the competition
10. Is the local market over supplied with office
11. what type of roof/condition
12. what is the going $/sq ft rate?
13. do you plan to be actively involved in the operations at a high level

a lot more questions to make an informed decision

I am a Cincinnati Native as well.  Have you considered house hacking?  Maybe buy a house and load it up with some rent paying roommates.  After you build some equity, hopefully you can move on to the next one.  

Can you find someone that is already established in your industry but won't be a competitor?  Can you get a vendor/supplier to invest?  A well connected investment/securities attorney may be a good consultant.  People often overlook the value of good local banking relationships.  My banker has brought and continues to bring several investment opportunities my way.  I have invested in a number of startups and have started several businesses over the years.  Feel free to pm me if you need more advice.

@Jessica Zolotorofe - will do.  Thanks for the advice!!!!!

@Jessica Zolotorofe - Thanks for the response.  These buildings (potentially 5 of them) share common walls and are on the same block.  They are currently separate lots/parcels and I would like to combine them to make one big parcel.  There are no more liquor licenses available in that county.  With one address/parcel, I can potentially utilize one liquor license across all of the buildings.  Is combining the parcels a realistic possibility?

Does anyone have experience combining parcels?  How about commercial parcels?  Why?, If one parcel has a liquor license and there are no more available in that county, that license can be "extended" if multiple parcels are made into one.

A lot of young people in your situation have done well wholesaling.  It can take a lot of hustle to land your first deal.  Another successful strategy is to be an apprentice or just show your hustle to someone who is successful and growing.  Recent podcast with Coleman Nelson is a good example.   A lot of investors are frustrated with property management, that can be a good segway.

I saw a guy implement this strategy in Illinois and made a killing.  @Account Closed is right, its hard to keep the contents a secret and many people probably know about this.  Don't underestimate the cost of demo and removal, easily a six figure job.  If there is lead paint or asbestos, there goes the profit.