All Forum Posts by: Ben McMahon

Hard time to find good subcontractors.  Most good ones are booked up for months.  Construction is a tough trade, and loyal contractors are hard to find.  If you don't have a pipeline for them, than you are most likely going to end up on the losing side of both pricing and priority.  

Theres cost associated to contractors pricing things out.  If they don't think they are getting the job and are just being used to price, than they won't show.  Talk to real estate agents about that.  

If you are really interested, you can go the old fashion way.  Find out who owns the building, contact them and see if they are willing to sell.  You would be surprised how effective this can be.  Especially right now.

Another thing that might make sense if you are utilizing agents is finding a newer CRE agent that is willing to pound the pavement for you. Older seasoned agents are going to be more in the deal flow, but like mentioned before are probably going to give first look to their buddies.

Also, You can look at your tenant pool first and bring your seasoned tenant into the deal.  Lets say you know a small franchise that Covid didn't destroy and they want to expand.  Its a great way into Commercial when you have your cornerstone tenant in the bag before the purchase.

@Mohr Ben-Reuven

The other option is to find a construction management company to hire.  Unlike a GC they would charge you a percentage probably of the overall project.  In the end it might actually save you money, and it would for sure save you a massive amount of headache, and reduce your overall risk.  Grew up in Upstate NY.  

The general rule in Construction is that everything alway costs more than you think, and takes longer than you think.  

Message me if you need more advice or help

Ben

My partner and I are actively looking for opportunities in this space.   Anybody have any avenues for that?  We are also happy and interested in developing.  

 I do think there is a better way, problem is that I'm one of the millions of newly appointed experts on "everything" that has popped up since the beginning of 2020.  I don't see anyway through but for it to be messy.   I never thought life was fair or easy ( thanks mom and Pops ).  The Covid situation I think shows everyone its messiness.  

Personally, I think its an opportunity for everyone to show what they are really made of.  I know we are talking about this guy's situation, but every conversation I've had in the last year seems to somehow always come back to what's happening in our neighborhoods, states, country, and world.  

I could cry about how things suck, or figure out where the opportunity is.  This guy did what he had to do, I wonder if the tenant is doing the same thing.  

I think some of the leadership ( like our governor here in CA) are making really poor choices.  There will be a fallout, some people are going to lose big time.  I lost "moderately" big time.  So now I gotta make it up somewhere.  Which I fully intend on doing. 

@Sergio Remedio

Aside from knowing somebody, or getting to know someone there's a trick that I used effectively in getting into my first commercial deal.  Bring a cornerstone tenant.  Often, especially in small towns, its easy to know who the successful business owners are.  A lot of the time they are willing to talk, and even partner with someone who can put a deal together.  

Most savvy investors are looking for reliable tenant contracts.  If you can bring that to them, its a no brainer.  

So Find tenants willing to sign a lease.  Obviously the numbers have to work, and they need to be reliable.  If you can get your nut covered with solid tenant contracts than some lenders will lend on that.  Sometimes the value add is a lot easier in commercial space because you can repurpose.  Not possible in residential.  

I used to take one tenant buildings and find 4 or 5 smaller tenants to occupy.  It takes a little work and creative juices, and some networking, but you can get those leases signed and either refi or flip it.  

Talk to business owners, see what they are looking for, and you might be surprised how many of them have been overpaying for less than ideal space.

@Trevor Shaw

Hey Dude, welcome to BP.  This really is an incredible resource for any level investor.  I think I first got on here when I went full time in 2013, and it was a huge resource.  I am currently a contractor in San Diego.  

I agree with the others pretty much.  The reality of real estate trends over the course of history always involves corrections, some big, some small.  Very Rare to to time the market.  IF you sell know its for certain you make money.  Everything doesn't have to be a home run.  I would settle for a base hit personally.  Or more like a double in this market.

@Kristina Dobyns

BP is for sure the best resource out there in my opinion.  Basically has the answer to every question you could possibly ask.  I live in San Diego, but invested mostly in Virginia when I lived there. 

 OOS investing is a different beast.  I would recommend you at least fly to whatever location you pick and view the property in person, interview agents, Property Managers, home inspectors, contractors, etc.  I just think there is a lot that can be missed remotely, and pictures don't always tell the whole story.  Once you have a team in place than you can feel a lot more comfortable doing it all remotely.  

Merry Christmas!

I did something very similar to this at one point.  Only I had another investor finance it.  It was a historic manor house on 40 acres and beautiful views.  We hosted wedding receptions and also rented the manor house and carraige house as vacation rentals. 

I underestimated the county interference.  As soon as they found out what I was doing they wanted to slap all sorts of restrictions on it.  County wants tax revenue, so make sure you check the zoning and all that.  And have a solid exit strategy.  Keep in mind that you are talking about several different businesses.  So a bar is one, Wedding venue is one, short term rental is another.  Lot of hats.  

With the wedding stuff though, there are a lot of added amenities you can provide.  I bought 300 tables and chairs and two massive tents and a dance floor.  Those we rented out to not just wedding parties, but to other local businesses for events.  Preferred vendors such as photographers, florists, DJs etc.  Lots of wheeling and dealing you can do.  Its fun though.