All Forum Posts by: Brian Black

I would like to review an operating agreement for real estate. I have had great advice regarding some of the things I should be considered in the agreement. Can you share an example of one you are using or of things you would add for a real estate company operating agreement between two companies who will own a 50/50 stake with the goals of buying and growing in the storage arena over the next 15 years?

THANKS!

I would run all the numbers with insurance and taxes into a calculator (or a pad of paper). If you can cash flow it at the present values (and feel you could get more in time) then it could be a go.

A quad would be a great option for the first buy in my view. Wish we had done it! Recommend putting down as much as you can! Make your first venture cash flow well and take off the pressure. 20% min. 15 year fixed term.

Good luck!

@Paul Moore THANKS!

Additional information: Building worth $150k as is. The value of daily deposits looks like they average about $355.00

Is there anyone that could give me ANY guidelines on how to correlate the value of a laundromat based on the use of utilities?

I understand there can be a lot of variables there, but am trying to value a laundromat.

I suspect there is more "hidden value" in this place than what is on the books.

They paid 15000 in gas, 8000 in electric, and 13000 in gas/water/sewer. There are a total of ~60 machines in the building.

Is there a way to back-calculate / extrapolate some simple info at all?

THANKS!

@Scott, Thank you very much for the reply.

Seems like 5-6% is industry standard as a starting point where I look around.
Does this seem right to you to put into a budget?

Thanks!

There is room to grow on this project and having a partner as a guide seems like a good option to me. I am more familiar with SFH and small multiplex space in my journey thus far. For him, it seems like having a partnership would be beneficial to allow scaling quicker for a job he already has the infrastructure to do. Also, although 30 miles apart, could there be concern about competition if he is not an equity player? Just more AM thoughts. Appreciate any feedback.

I have an accepted agreement for a storage unit facility under my company. A regional businessman is interested in joining this venture. I approached him regarding a possible management agreement (they have storage units in the area already). They mentioned a possible interest in equity as well. His company is well respected and I have worked with him on his prior business as a customer.

I would expect if he managed there would be a reasonable fee but don't have experience in storage units / management fees.
What is a typical fee arrangement for running storage units off-site (following technology updates to facilitate this model as best as possible)?
Would this fee be expected to be the same independent of partner status or not?

I would expect a plan 50/50 split if both are bringing equal capital. Does anyone else see a different split expected?

Options / Risks / Benedfits / Alternatives to consider?

Thanks!

I have enjoyed using Avail which is working well for 25 units for me. 

Agreed with Jim Shepard. Don't accept partial payments even as you try to work with them. Be firm about enforcing the lease or evicting if necessary. I agree the deposit should be used for damages as noted in the lease. Good luck.