All Forum Posts by: Ash Patel

I do have a few 1031 questions and thank you in advance for the answers:  

Lets assume I get close to my sale and don't have a replacement property picked out but am optimistic that in the following 45 days I can pick out three potential properties.  

• How much time before my sale closing date should I get the qualified intermediary involved? 
• If in the following 180 days I am unable to close on a property, I would assume that I am out just the fee's to the intermediary.  All of this would go down in one tax year.
• I am assuming the fees are under a few thousand dollars (assuming a typical transaction)?  If that's the case it would definitely be worth rolling the dice to buy 45 days.

Thanks again!  Ash

Thanks @Bill Exeter , @Mark Creason and @Jeff B..  I have had the sell property under contract for a month now.  The closing date will be 3/31, which will be one year and one day from my purchase.  I have been anxiously looking but deals are no where near as prevalent as just one year ago.  If I can't find something in the next three months, I may just bite the tax bullet.

any update?

Thanks @Kathy Stewart!  I very much appreciate that.  I actually visited San Ramon in 85!  I used to have family out there.  Best of luck to you!!!

You should live in it and call it the model.  Give it a name.  I have partners that build in resort areas and they always keep a house they can live in or visit.  The key is to make it look like a model vs a fully occupied home.  You can also call it the builders home.  You built it, enjoy it and keep us posted.   

Clyde,

I believe @Joel Owens is too professional to say that no one can screw up a commercial deal better than a residential realtor.  I have experienced this first hand.  Mix that with being your best friend and you don't need a forum to tell you that you how this will end.

Most of my properties are fairly unique like the one you are working with so I always market them myself.  With a 20k traffic count, put up a giant banner on the building or close to the road.  Market it all over social media, pound the pavement etc.  I had a very similar space and there are a lot of options you have.  If you have the time and inclination to market the property yourself, do it.  If not, find a good commercial broker.

Josh,

Your number one goal should be to stop the bleeding.  I will assume you are responsible for insurance, taxes and utilities.  If you don't have the funds to improve the property, offer a reduced rent in return for your tenant fixing up the place.   

Advertise the space in detail and let the market decide if it should be rented as office space or warehouse space.  You could get interest from a dog day care, floral shop, etc.  Take out several ads and list them as different types of property also.

You don't need a real estate contract you need a commercial lease.  You can look online for Leases.  

Keep us posted.

I had a similar experience. A saw a NNN strip mall with a 20% cap rate. I thought this was just too good to be true. I looked everywhere for the catch and even wrote my contract contingent on the tenants signing a new five year lease. I tried to flip the paper, advertising the property for a 12% cap and the response that I got from people was it was too good to be true for a NNN property.

A year later and I have the property under contract at a 10 cap and a half million dollar profit.  There was no catch.  The tenants are phenomenal and they are all intending to stay for a long time.  The only "catch" here was that the property was initially listed by a residential realtor doing a favor for a friend.  He did not know how to value commercial property.  The moral of my story, if it is too good to be true, it often is, however, in rare occasions, it pays to be cautiously optimistic.  Best of luck to you all.

I have mixed use, retail, medical, residential and office properties. I can tell you that the office building is the most work by a factor of 10.  Single tenant retail is a breeze compared to office buildings.