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All Forum Posts by: Henry Clark

Henry Clark has started 209 posts and replied 4100 times.

Post: Gifting Property From Parents to Kids

Henry Clark
#1 Commercial Real Estate Investing Contributor
Posted
  • Developer
  • Posts 4,176
  • Votes 4,147

Have him talk with his tax person first, then with a Trust lawyer.

A.  Basis $100k with $500k value, then they have to pay taxes on $400k.  Is this easily valued?  If not need an appraisal.  Gift tax 18 to 40%, does he have the cash to pay the taxes?  Does he have the basis documented?

Basis $450k with $500k value, then don't worry.  Pay the small taxes.

B.  Negative value asset.  If he has a loss, then he should sell and use this himself.  Gift the money.

C.  Maintenance upkeep, property taxes, insurance, etc.  Are the kids prepared to take this on.  Do they have the cash flow to handle this and also the Income to take advantage of the costs as an offset?

D.  How old are the kids?  What happens if the friend dies before they are of age? Is this settled with his spouse, ex, or other?  Can the kids handle the legal ramifications?

E.  How old is he?  How healthy is he or his family side?  

Lot of questions that need to be answered.  What is his objective financially for this gift, not emotionally.

Post: Industrial/Flex Property- Day in the Life, Building a Flex Prop

Henry Clark
#1 Commercial Real Estate Investing Contributor
Posted
  • Developer
  • Posts 4,176
  • Votes 4,147

Got an update from City planning on our site.  Attend City Council meeting for approval next week.

Zoning:

The property we are using for this project is part of the same 8 acres we are using for our Storage location. It was collateralized under that SBA Agreement. Unfortunately SBA does not finance these types of contractor buildings, where someone else works in them. So we are having to subdivided the 8 acres and go through the City. Attached below are the City notes for an upcoming council meeting for approval. For your info. Summary, key thing is all utilities go underground. And a sidewalk along the street needs to be installed. I have deleted most of the non-information data. For the Quick Read, just look at the Bold and Underlined. I will attend the upcoming Council Meeting to address any quesitons.

City Council Development Notes:

Subject/Title
Request: Final plat approval of a two-lot minor subdivision to be known as Clark Storage, LLC Subdivision.
Clark Storage LLC Subdivision, as shown and legally described on Attachment ‘A.’ The subdivision contains 8.24 acres more/less of land and is located at 4810 South 35th Street. Proposed Lot 1 will contain 3.93 acres and proposed Lot 2 will contain 4.31 acres of land. The applicant’s commercial storage operation will be located on Lot 1. The applicant will retain ownership of Lot 2 and intends to locate contractor incubator buildings on this lot.
Zoning/Land Use
The subject property is zoned C-2/Commercial District and has nine (9) existing storage buildings and one (1) existing office building on the northern portion of the property. The proposed final plat shows six (6) additional proposed storage buildings.

Surrounding zoning in the general vicinity of the request includes R-1M/Single-Family Manufactured Housing District zoning to the north, A-2/Parks, Estates and
Agricultural District zoning across South 35th Street to the east and Veteran’s Memorial Highway to the south, and R-3/Low-Density Multifamily Residential District and C-2/Commercial District zoning to the west.
CASE #SUB-20-008
Staff Report Page 2
Existing land uses in the general vicinity of the request includes a residential neighborhood, Trailer park, to the north, and undeveloped land to the east, south, and west. xxxxx, a residential subdivision, is located across Memorial Highway to the southeast. The future land use plan of the Bluffs Tomorrow: 2030 Plan designates the area as Rural Residential/Agricultural.

Comments
1. The proposed subdivision is consistent with the Bluffs Tomorrow: 2030 Plan (comprehensive plan) as well as the purpose and intent of the City Subdivision and Zoning Ordinances.
2. Both lots in the proposed subdivision exceed the minimum C-2/Commercial District lot size requirements and have direct frontage on public roadways.
3. All development in the subdivision shall comply with the standards stated in Section 15.15 C-2/ Commercial District of the Municipal Code (Zoning Ordinance). Proposed Lot 2 is considered a corner/double frontage lot as the lot has frontage along both Memorial Highway and South 35th Street. Chapter 15.03, Definitions, of the City Municipal Code (Zoning Ordinance) defines the ‘front lot line’ of a corner lot as “the shortest lot line along a street other than an alley (§15.03.430)”. Based on this definition and the lot dimensions shown on the proposed final plat, the lot line adjacent to South 35th Street shall be considered the front lot line for proposed Lot 2 for zoning
setback purposes. The property line abutting Memorial Highway right-of-way shall be classified as the street side property line for zoning setback purposes.
4. A sign permit was issued to allow a 128 square foot pole sign in the southeast corner of proposed Lot 2 in June of 2020. The proposed minor, two-lot subdivision would not result in the creation of a nonconforming off-premises pole sign as Mr. Clark will retain ownership of both Lots 1 and 2. If Lot 2 is ever sold, at such time the pole sign would become non-conforming.
5. Public water, sanitary sewer and storm sewer utilities are available to service both lots in the subdivision. Any cost to construct, extend, remove and/or relocate any utilities within or to this subdivision shall be at the sole expense of the applicant and/or developer, and not the City.
6. All electric, cable and communication facilities shall be installed underground. All costs to construct, remove and/or relocate any utilities in this subdivision shall be the responsibility of the applicant and/or developer, and not the City.
7. Section 14.14.040, Sidewalks/Pedestrian Ways, of the Municipal Code (Subdivision Ordinance) requires that sidewalks be installed in all subdivisions and they be designed and constructed to comply with Public Works Department criteria. Proposed Lot 1 has frontage along South 35th Street and Proposed Lot 2 has frontage along both South 35th Street and Memorial Highway; however there are no existing sidewalks along South 35th Street adjacent to the proposed subdivision. A sidewalk designed and constructed to comply with all Public Works standards shall be installed along South 35th Street adjacent to the proposed subdivision. Installation of the sidewalk shall occur in two
(2) phases. The first phase of the sidewalk shall be installed along Lot 1 prior to issuance of a certificate of occupancy for the proposed additional storage buildings. The second phase of sidewalk installation shall extend the sidewalk along the entire length of Lot 2 and shall be completed at the time proposed Lot 2 is developed.

CASE #SUB-20-008
Staff Report Page 3
8. The cross access easement between the two (2) proposed lots shall be extended to the far west property line to ensure no access issues arise in the future between the two parcels.
9. The City Fire Department stated that they have no comments in regards to the proposed minor subdivision.
10. Cox Communications stated that they have no issues with the proposed minor subdivision.
11. The following technical corrections shall be made to the proposed final plat:
a. Revise the side yard easement for each parcel to state five (5) feet, as opposed to the 10 feet, stated on the plat.
b. The full metes and bounds legal description for the overall subdivision boundary shall be stated on the final plat.
c. The following standard easement notes shall be included on the final plat.
a) ERECTION OF STRUCTURES PROHIBITED: Grantor shall not erect any structure over or within the Easement Area without obtaining the prior written consent of the City Engineer, provided however grantor shall have the right to place and maintain a surfaced roadway over and within the Easement Area.
b) CHANGE OF GRADE PROHIBITED: Grantor shall not change the grade, elevation or contour of any part of the Easement Area without obtaining the prior written consent of the City Engineer.
c) RIGHT OF ACCESS: City shall have the right of access to the Easement Area and have all right of ingress and egress reasonably necessary for the use and enjoyment of the Easement Area as herein described.
d) REMOVAL AND REPLACEMENT: The cost of removal and replacement of any unauthorized
improvement or structures within the Easement Area, necessitated by the exercise of the rights under this easement, shall be borne by the Grantor or their successors or assigns.
e) SURFACE RESTORATION: City’s liability to restore the surface within the Easement Area shall be limited only to grading and seeding, and replacement of grantors surfaced roadway.
f) DUTY TO REPAIR: City agrees that any drain tile, drive or access way, fence, or yard or other improvements outside of the Easement Area which may be damaged as a result of any entry made through an exercise of the City’s right of access shall be repaired at no expense to Grantor.
g) EASEMENT RUNS WITH LAND: This easement shall be deemed to run with the land and shall be binding on Grantor and on Grantor’s successors and assigns.
h) GRANTOR RESERVATION: Grantor reserves the right to use the Easement Area for other purposes provided however these purposes shall not interfere with grantees use of the Easement Area under the rights of this agreement.
d. All building renderings shown on the final plat are not necessary and shall be removed.
Recommendation The Community Development Department recommends approval of the proposed two-lot minor subdivision to be known as Clark Storage LLC Subdivision, as shown on Attachment A, and subject to the comments above and the conditions below:
1. The final plat shall be recorded within 90 days of City Council approval or the plat will become null and void unless an extension has been requested and granted by the Community Development Department Director.
2. Conform to all City standards and specifications, the zoning and subdivision ordinances and the Department of Public Works Standards for Public Improvements.
3. All comments and technical corrections stated in the case staff report shall be addressed on the final
CASE #SUB-20-008
Staff Report Page 4
plat prior to execution of the document.
4. All utilities shall be installed underground. Any costs to construct, remove and/or relocate any utilities shall be the responsibility of the applicant and/or developer, and not the City.
5. A sidewalk designed and constructed to comply with all Public Works standards shall be installed along South 35th Street adjacent to the proposed subdivision. Installation of the sidewalk shall occur in two (2) phases. The first phase of the sidewalk shall be installed along Lot 1 prior to issuance of a certificate of occupancy for the proposed additional storage buildings. The second phase of sidewalk installation shall extend the sidewalk along the entire length of Lot 2 and shall be completed at the time proposed Lot 2 is developed.

Post: Surveyor needed for a site plan.

Henry Clark
#1 Commercial Real Estate Investing Contributor
Posted
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@Ismael Loreto

What I'm recommending above is to see it it can fit before you get any more expense or time into it for the Site plan.  You should be able to go back to your original surveyor and have him lay in into the survey.

For the guest house, recommend you just find an existing plan and purchase it.  Make modifications as needed.  If you start with an architect to design the guest house you might have $20,000 to $40,0000 wrapped up in engineering fees.

Post: Industrial/Flex Property- Day in the Life, Building a Flex Prop

Henry Clark
#1 Commercial Real Estate Investing Contributor
Posted
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  • Posts 4,176
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@Cole Bigbee

The major differentiator between locations I have seen is actually the parking outside.  In your leases have you assigned outside parking?  It’s usage so you don’t get a bunch of junk?  

Cleanliness of the location. I’ve seen two ways.  Professional and clean outside. No derelict vehicles.  Or Joes weekend warrior location with spare vehicles and equipment sitting around.  What are your approaches?

Post: Industrial/Flex Property- Day in the Life, Building a Flex Prop

Henry Clark
#1 Commercial Real Estate Investing Contributor
Posted
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  • Posts 4,176
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@Cole Bigbee

What type of electric service or alternatives do you see for the 2,000 soft spots?   100amp

Also what do you see for floor drains in the service area?  None, middle or at the doorway and squeegee?  

I’ve seen 14x14 doors mainly.  Versus the 12x14 you mention.  Obviously bigger is better.  But in this instance the operator becomes $3,500.  Versus just a chain operator. Or do you always go with a remote control door?

Thanks. 

Post: Next step after Land Purchase and Survey

Henry Clark
#1 Commercial Real Estate Investing Contributor
Posted
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@Ronald Cahill it’s fun selling 2 acres for $100,000 that you bought for $580 per acre.  Just doesn’t happen every day as @Joe Schmitt can attest.  Let me know if you need any further input on your objective. 

Post: Self Storage Security Camera system

Henry Clark
#1 Commercial Real Estate Investing Contributor
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  • Posts 4,176
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Few other Odd bits of info:

Another note, this is both a surge protector and a battery backup for the camera system.

Normal 1599340676 Surge1

Below is the latest camera we added for one of our unattended locations. This is at the entry way. This camera will be used for many functions:

1. Motion Sensor. It will send me a message if someone is at the gate. This one is turned towards the entrance at the moment. We will set to send me a signal on my phone from 11 to 7 in the morning.

2. It has a verifocal lense. We can zoom the picture in/out and side to side on the NVR recording. This is different than just enlarging.

3. Picture or camera definition is measured in Pixels. The more pixels the higher definition of picture and the more you can enlarge it to get license plates, tattoos, and facial images. All of our cameras are now 4 meg and cheaper than when we started with 1 meg. This camera however is a 4 "K" versus 4 meg. At first you would think a 4K is lower than a 4 Meg; however a 4K is actually 8 megapixels. This is not a License plate camera, but it achieve most of the features that a license plate camera, but allowing for a wider angle shot than a License plate camera which only covers an area half the size of your front grill on your vehicle. It has higher definition. Also it can be zoomed in further.

Normal 1599340741 Cam 4k

Post: Self Storage- Cargo Containers

Henry Clark
#1 Commercial Real Estate Investing Contributor
Posted
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  • Posts 4,176
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@Paul Leavitt

All local zoning questions.  Leg work time. Do a market survey first.  Products and pricing

Tent sites

Camper sites

Camper rentals

Motels

Hotels

Check availability and how they contract.  You want to be below Camper rentals and motels.  Above tent and camper site pricing  

Post: Industrial/Flex Property- Day in the Life, Building a Flex Prop

Henry Clark
#1 Commercial Real Estate Investing Contributor
Posted
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@Ronald Rohde

What are your suggestions?

Post: What do I do with this property?

Henry Clark
#1 Commercial Real Estate Investing Contributor
Posted
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@Keith Olson

Couple of avenues along the same lines as above:

1.  The Martial Arts studio my son went to, had to move three times in the last 10 years due to unusual things.  I noted the Tropical Fish store followed him twice.  What I mean by this is you have other businesses who have customer basis or areas of town similar to yours.  As stated above build out as much as possible.

2.  If you construct from scratch talk with your CPA first. Ask him how he wants the expenditures to be segregated on the contractor billings.  Example:  Electrical, HVAC, Security system, Roads/Parking, etc.  He can write off some of these in year 1, giving you a tax/cash advantage.

3.  Also have him look at who should own it and how it should be owned.  He might recommend a Sale/leaseback or renting from a family member.  Trying for a tax advantage.

4.  Build for the future.  Watch out how you position the building on the property relative to street access and view.  Look at how your parking is done.  You might never want a drive through window, but a future owner might.  Etc.

5.  When it comes to the footprint, check with zoning on Setbacks, required landscaping and parking, need for Storm retention ponds, fire hydrants, sidewalks, water/sewer/gas easements,  etc.