All Forum Posts by: Henry Clark

Realize I'm not answering your question, believe you need to go in a different direction.

1.  Save you money to get through school.

2.  If you want to do a real estate deal, get a 4 bedroom house and get the other three to pay for it.  That's if your already renting.

3.  If you want do remodel fix/flip or Brrr, go smaller, do a Trailer.

Good luck in College and your investments.

Loan officer to loan officer.  Whatever risk level they are willing to assume.

Need to clarify your situation.

a.  NC property is it cash flowing on its own?

b.  Washington property, is it cash flowing using the BAH?  If you move Bases, will this property cash flow without the BAH, since you will need it at your next base?

c.  Arkansas property, will it cash flow?

On all three do you have enough Collateral or equity to swing a third deal?

There are truly a million questions you can ask a CPA to compare.

You need to lead off with why do you need a CPA?

What type of Investments?

What stage or issues are you having or will have with the investment?

Make your question more definitive.

Example: I am looking to start SFH rentals. Need help with closing and documentation. What to do BRRR or Fix/Flip, how should I keep my records for you. What type of real estate clients and transactions do you handle? Did any 1031's? Etc.

Narrow it down to your interest, to get better responses.

Interesting fact. Below is a Cacao or Cocoa bean. The white internal portion is a covering over the actual bean. You can actually eat of suck the white meat off of the bean. It is super sweet. Other than money, always remember why your doing storage. We are enjoying investing in Belize.  Just got back from checking things.  First trip since last February and Covid.

Getting closer to opening on this project, what I will call Phase 1. Two most exciting times for storage development:
1. Pictures below, putting on the Unit and size numbers. Means we are getting close to opening up and starting to rent.
2. When we hit 65% occupancy, which means we are covering Principal/Interest and all costs for Phase 1.

The unit numbers are 2 inch widths. Key to applying is to wipe the surface clean and dry. Air temperature must be 60 degrees or higher. Peel the back cover off, then apply. Scrape along the back several times all over to affix to the metal, then peel off the exterior paper cover. If it is the first time you use these, try with another number other than "1" to get the hang of it.

Unit Size number "10" below. We put this next to the door latch. We do self service, so customers can look for the size 10/15/20 without us telling them a specific unit number, since all of the doors are the same size and you can't tell the depth without opening up. This also helps us, since we are not sitting at a computer all of the time, and can't give them specific unit numbers and sizes off the cuff. Buy extra in case you mess up. You have to buy a minimum quantity and don't want to have to order one number.

Was afraid these numbers would fade or peel, but they have done really well over 7 years. The only time we have had problems is if it was too cold, or we did not get all of the moisture off the surface.

You might note the orange or red tape to the left in the first picture. We will put red tape up for "light" locations and green tape for cameras. This way our electricians and security camera guys know where to put them, without us being there all of the time.

@Michael Franko

Recommend you don't go the family route, even though it is the easiest up front.  If you do, tell them it will be 10 or 20 years.

If you fail, they fail.

If you succeed, why didn't he share.

No win, proposition.

Your non cash Assets- Time.  Don't know if all fire departments are the same.  The firemen I know work a lot of hours on; then a lot off.  Thus they have free time.  If you have this type of schedule, recommend you use your "Time" as the asset, sweat equity and do rehab/fixer uppers.  Your returns are going to be minimal on Rent ready properties.

Ohio for what ever reason as you might have noted on BP has a lot of BP investor interest.  You might seek out a financial partner from out of state.  You be the on grounds person with an equity interest.

With low down payment available, you might look at starting with Trailers and RV rentals.  

Also you might look at an SBA loan.  10% down.  They only do certain types of property.

House hacking is probably out of the question with the kids and staying in certain school districts.  

@Account Closed

No matter what was missed, great job.   What's the saying, its better to have tried and failed, than not try at all.  Start developing a checklist for future projects, unless this was a one off.

As noted above, you want a copy of their policy with your ownership name as an Additional Insured.  You need this updated annually.

You have two insurance periods to be concerned with:

a.  Construction-  They should/will have a policy covering them during construction, even before occupancy.  Have them add you to that policy.  If they can't get it to you, or its a problem, at a minimum go to your Personal insurance company and tell them the situation and get a "Liability" only policy.  This should be very cheap ($200) for 6 months or less.  You will be exposed for Property, because I doubt your local personal insurance company will do a policy, or if they do it will be extremely expensive.  When we first started, we went with our local insurance company.  Switched to a Self Storage specific carrier and the premium was half.

b.  Ongoing- as part of your contract require annual updated copies with you as additional insured.  Tell them the dollar coverage you require and the deductibles.

COO- you might have put a deadline, after that rent kicks in or a termination clause.  Is the build out going to be 1 month or a year?   

Additions-  Also part of the contract should state what additions, fixtures, etc. stay after they leave.  You don't want a hole in your roof or wall if they take out a 3 year old HVAC system; grills, drive up fixtures, tear up the floors taking out fixed tables, etc.

Contract period/renewal/rate escalation-   another component for you to check or ask about.

Triple NNN- being new, you might make sure you understand this concept and understand what is or isn't covered. Property tax, new roof, new parking lot, HVAC, landscaping, etc. Make sure you understand what NNN is and isn't per your lease, so you are budgeting for it. Your biggest worry is if the tenant does not do maintenance prior to the end of their lease.

Its really a yes or no status.  You either have a Railroad Right of way or not.  If you have a ROW, then you can't do anything there.

A little confused.  There is no Rail, but you have direct access to the rail?

A.  Recommend you follow the old rail line above and below your property.  Look and ask other property owners where it runs through and see if they have built in the path and what legal actions or inactions they took.  They may have already did your research.  Normally easements stay for ever, unless they are legally released.  If not,  your banker or any future finance deals will not approve loans on any buildings in that right of way.

B.  Find the rail company and talk with their Legal or Property administrators and note the land and get their documented position.

We have two properties with Railways next to them or in them.  One is operational and they will not let you even park a truck there.  We bought our land from them.  The other was a loading spur for an old company that no longer exists.  Which we tore out.

Railroad companies are a special animal.  They have more power than most governmental units.

The contact list is also your “Team”.   Point is to build your team. 

@Tyler Hardy

Glad to pass on info.  But you owe me one.  If my LSU Tigers play your Georgia team you have to root for the Tigers. The LSU Tigers.