All Forum Posts by: Steve L.

I do mostly industrial properties in Inland Empire, California.  My tenants want as little office as possible.  It is funny.  

Can anyone recommend an eviction attorney in Martinez, CA or close by?

I agree with Joel.  The market is pretty stable.  Profitable value add opportunities are difficult to find.  We will build a couple industrial buildings to create inventory.

I am hoping to purchase 4-5 new projects this year.  

Building 16,800 SF of metal building for that price seems really low. Does that include bathrooms/office?  

The rent range is wide and seems pretty high, but I'm not sure.  

I think this is a question that an accountant can answer better.  

LLCs are cumbersome and require individual tax returns. In California, there is an $800/yearly fee per LLC. Not sure about Oregon.

Probably it is complicated to try to accomplish your goal in one entity unless all partners have the same ownership interest or if other partners want to come in partially as lenders.

I think the Ontario airport will have rapid expansion with it coming under local control.  The city of Ontario is very difficult to deal with.  Everything is a challenge.  I try not to buy anything there.  

If the land is on a lease I would pass.  The value will be very low when that lease is up.  

I think your lack of operational experience will be the biggest obstacle for a lender.   If you partner with an operator that has banking connections for the first deal or two that would probably solve that problem.  

The other option would be to find a stabilized asset.  If you find a stabilized multi-family asset banks are very excited to loan on it these days. 

I am not an accountant, but here is my understanding.

1. If you want to open a bank account in California you need to register the LLC with California and pay the $800 fee.

2. For taxes, i think you will need to pay Income Tax on that income based on your marginal rate.   

So I don't think you need to pay the $800 fee unless you try to open a bank account in CA.

@Chet Mazur you can do a deed in lieu but that wouldn't wipe out any liens with lower priority than yours.  Not sure if that is an issue.  The Borrower would have to co-operate or be incentivized. 

Does your note have a default rate in it?  Your usually best to take it to sale.  Hopefully, you bought it cheap enough where getting a full payout at sale is a pretty good plan b if someone comes to bid.