All Forum Posts by: Casey Miles

BP,

Thanks for all the great replies. Always great information here. One tenant, who occupies 75%, is a non-profit. I used/converted there existing lease (they've been there 8 years) for their renewal. For the vacant space I'm going to find an AZ Lawyer to draft it up. I'm going to have to put some TI $ into it and want to make sure I'm protected.

Thanks again,

Casey

Hello BP,

I'm working at closing on my first commercial property here in Arizona, my background is in residential rentals up until this point. I'm looking for a boiler plate modified gross lease I can use. I was hoping someone here had one they could give me. A Word doc format would be great because then I could edit it.

Thanks,

Casey

Hello BP Folks,

I have only invested in residential real estate (MF and SF). I'm looking at knocking down my first "commercial property". It's a small single story office building. Roughly 6000sqft (4 - 1500sqft) offices located in Mesa, Arizona. Current agent is putting a replacement value of 765,000 with a $3600/yr premium. I have a couple questions.

• What does everyone use as a budgetary figure/formula for insurance premiums?
• Can anyone recommend a good commercial agent/broker?

Thanks,

Casey

Hi Jake,

First, thanks for your service to this great country!

I tell people to be "aggressively patient and overly prepared". What I mean by that is real estate in the long haul is cyclical. I started buying in 2010 and aquired a property roughly every 10 months or so through the third quarter of last year. Now I'm ready to take the next step into a midium size complex but I can't find anything that's within my comfort level. Yes, I could buy something and make $ but there isn't enough margin I beleive for a correction that I feel is coming. 

I'm aggressively looking everyday, I have all my ducks in a row from a financing and cash perspective, I'm just waiting and being patient. 

You can do a lot to educate yourself, etc that doesn't cost you a dime while you figure out what your next step is.

I'm located in Mesa. If you ever need any local help please reach out. I'm also a realtor but don't advertise it because I mainly just work on my own stuff. However if you need anything "realtor related" don't hesitate to ask.

Take care,

Casey 

Hi @Ed Caldwell,

First Bank offers HELOCs on investment properties. I've used them for two HELOCs and two purchases. Their portfolio lenders so they carry the note, very investor friendly.

I'm in the same position, great tenants, but I need to cash out to use the equity for the next level of investing. I've thought about selling to another "friendly investor" however the issue is that SFH are worth more now as owner occupied purchases than they are as rentals. The returns aren't there in my opinion.

I'm going to do right by my current tenants I just don't know how yet.

Hello Everyone,

We have one rental house in Albuquerque. It was my wife's former home and because of the stagnate market there it's now a remote rental. It's in need of a new roof. We've received some quotes but they are all over the board and vary $7k between the low and high bids. It's a smaller home with a flat foam roof. I was hoping someone here has direct experience with a roofer in ABQ that they can recommend.

Thanks in advance,

Casey

Hmm. Have you reached out to portfolio lenders to verify you can't get HELOCs on your condos? The reason I ask is this looks like a cash or HM type deal. I bet there is someone willing to JV on this if the numbers hold up. Like @Michael Le mentioned your NOI seems a bit "optimistic"

I believe it's too small of a deal for any traditional commercial lending.

Hi Sean,

You won't find 10% caps in Phoenix that's for sure. You'll be lucky to squeeze out 7% with management in place. Vegas follows a somewhat similar trend to Phx so I bet you won't do much better there. There are always exceptions especially if you're going to rehad/reposition but on a turnkey you're going to have to lower cap rate expectations.

10% management is what I use for calculating but I'm sure there are cheaper ones out there. This is definitely a "get what you pay for" type service though so I wouldn't get too greedy with it. It's like trying to negotiate down your agents commision, not the best move in my opinion.

Hi Ly and welcome to BP. There are a lot of opportunities out there and a lot of people who will probably want to take you up on your offer. Please be careful in vetting everyone. Look for a lot of direct experience. I wouldn't suggest forming a partnership where both parties don't have much experience. Make sure any partnership has an agreement and it pounder out before $ gets involved. So much easier to establish who's doing what in the beginning versus when emotions, etc are involved mid deal/partnership.

I'd be interested in buy/hold partnerships as that's what I'm experienced in. Shoot me a message sometime and maybe we can meet up.

Have a great weekend,

Casey

I use FirstBank for anything I'm buying in metro Phoenix. They don't loan really anywhere else in AZ. Shoot me a message if you want my Bankers contact info.