All Forum Posts by: Brock Mogensen

 Leases are always a negotiation. 3% is the norm, but certainly can shoot for higher. Or just start with a higher Yr 1 rent rate

3% is the norm for annual rent escalators in a NNN lease. The norm was set based on the Fed's target inflation rate.

Depends on whether it is value-add/stable, asset class, market, etc. But my IRR target on syndication deals we are doing is minimum of 17% to investors/LP's.

Talk with a local real estate attorney familiar with Operating Agreements, PPM, and Subscription Agreements.  Sounds like you won't be setting it up as a fund structure, it would be a syndication. 

 Find a deal where you can create value. Below market rents, upgrades to the property, etc. And make sure the numbers work out that the deal is cashflow positive once you move out and fill that unit with a tenant.

That is the downside of long term NNN leases..vacancies are tougher to fill/project.

The way to mitigate the risk is assume vacancy periods at the end of each lease. Talk with experienced leasing brokers in the area on demand for the space. Make sure the rents are in line with market. Build a strong relationship with the tenant. Get well ahead of any vacancy periods by consistently communicating with the tenant..these are just a few ways to mitigating risk on these deals.

Investing in a syndication really depends on what your investing goal is. If you are looking to begin building a more passive portfolio, it can be a great option.

I would suggest deploying the 500K into multiple assets.

If you choose the syndication route, connect with several different syndicators and decide which ones you prefer to invest with.

It really depends on what you're looking for out of the "coaching".

Are you wanting one on one coaching? Or more of a community style coaching?

One on one coaching will be much more costly. Community style can be much more affordable. Through the community style you will gain new connections but the guidance you receive won't be as direct.

What is your niche in real estate? I also suggest finding a mentor that specializes in that niche. Residential, STR, flipping, wholesaling, syndication, etc.

I've worked with several coaches and joined many groups throughout my journey.  I'm an advocate for working with someone to fast track your goals. But definitely agree you want to find the right person that actually has the track record to back it up.

Cash flow certainly is tough to find right now but I never like to buy anything that doesn't cashflow on day 1..unless there is big upside.  Sounds like with the locations you are buying in, you will see some good appreciation (eventually).  But I would still aim for finding deals that will cashflow once you move out of them

Raising capital is definitely tough in the current economic environment.

Of course the deal needs to make sense from return perspective. But the most important factor is having a great story around the deal. How are you going to add value? Getting the potential investor excited about the deal.

Starting with family and friends is the best place to start for a capital raise.