All Forum Posts by: Bradley Bissett

Hi BP. I am interested in purchasing a commercial property. It’s a great location which is why I want it. Bc of my lack of cash I am planning to obtain a buyers option on the property and seek investors and research franchises, all my options and due diligence, etc....well on my way in those arenas- however say I get the place for $100k and have the property ready to negotiate w a franchiser or equity partner...what’s my game plan? My goal is to own great real estate and rent it, not run another business or be involved. Any guidance as to how this could play out would be much appreciated. Thank u BP Nation. -Brad

Hi Nina. If ur ok w the homes condition and still want to purchase it I’d recommend speaking w a community banker. Explain to them the situation and your willingness to pledge the home and additional collateral(your primary residence or other assets) in lieu of down pmt. This will keep money for Reno in your pocket. After Reno sell or refi the property so it stands alone. Conventional mortgages are so fit in the box that I actually don’t mind doing the unconventional and possibly paying for two closings. If the deals good you’ll win.

Past 3 yrs tax returns Personal balance sheet Rent roles from your existing SFRs Subject property info Subject property rent roles Current Occupancy/vacancy rate Collateral offered

Have cahones!!! Lol. Great plan! Economies of scale! The hardest part any RE deal is getting it bought. Hopefully it's a good deal. I'm sure uve done the homework. Financing is easy kind of, I'm a banker. W deals like this I ask--good credit? -check, good personal financial position and good projected cash flow on new deal? -check, 25% down? No? how about additional collateral in lieu of down pmt like 2 free and clear SFRs? 10 years in the game u may have great equity I so pledge those good ones. Lastly, show reserves or ability to grow some and deposit w the bank u choose. Keep in mind depending on your location u could be at peak market values, don't over leverage without capital to burn in hard times, also consider starting the conversation w the seller about a deal in the future...u might just see a dip in economy/mkt and reap the rewards of patience a few months down the line but I understand striking while the iron is hot too. Only u know that. Good luck.

I just visited and had a great time. Im from 60 miles north east of Detroit. Detroit has a long ways to go still but the fact is, D troit is back! We used to just stay close to the ball parks but now we venture out and that says a lot about the temp. of the city. Locals can feel it in the air too and the positivity is breeding friendly good experiences. Millenials want in and i'd look hard at properties there if it were my target market. People dont know it yet, but lots will have hit home runs! Cant wait to visit the new Little Cesars arena. Good luck. -Brad

Hi BP nation. Im looking for a little advice as im about to close on my first Multi-Family. The 3 unit home has only 1 hot water heater. The units each have separate gas/electric but not water/hot water. The hot water heater is located in unit 1. The seller has unit 2 and 3 pay $10 extra/month and credits unit 1 $20/month. In addition to this the seller collects the city water bill (based on ppl/household) from each unit monthly and pays the city. I think he does this because he wants to ensure one bad pay doesnt result in the whole house getting the water turned off. As a BP investor, im all about reducing work for myself, adding value, and creating systems to reduce stress. Should I take the time to set up each unit with its own hot water, and additionally install shut offs for each unit in the basement where only i have access....so if the unit doesnt pay water,,,on their own...i can get the notice from city and turn off as they would any other SFR rental i have in town...Thanks in advance for your input. I truly appreciate the help i get from the forums...priceless advice. Thanks again. -Brad.

Hi Dante. Very good info provided above but as u know much of it depends on your goals. Give me a call sometime. I'd be happy to talk w u about your options and concerns. -Brad Bissett

Thanks for the great feedback. I definitely have more research to do. But I can't help but ask a couple more questions from the BP nation. :) How would u guys "confirm" the gross rental income as well as the occupancy rate of 95% and 98% as stated by the seller? This question, as well as the appropriate vacancy rate to plug into my analysis have been looming in my brain. I feel like the 5% est. vacancy I use in my rentals is not appropriate here...? Thanks everyone.

I have a lot of real estate experience but feel like SS might be the cats meow in comparison. Thank u for the great feed back. I will check out ur blog for sure.

Hello BP nation. I have found what I consider a pretty good deal for a self storage facility. The plan is for my wife to have on site office hours and also have a drop box on location. My concern is the location of the property. It is in the next town over about 20 miles away. No traffic but still 20 min drive for the random phone call to rent. Can this business be ran from this distance. Where there's a will there's a way but I was wondering if anyone had experience with this sort of challenge? I've considered using Site Link as a program to help but there will no doubt still be a need for hands on management which my wife and I are prepared to do. Any tips or solutions?