All Forum Posts by: Damon Pendleton

I think it depends a lot on your finishes and on what you are rehabbing (kitchen vs. living room for instance). Just call a GC and let them give you a real estimate. 

Like anything else, it's all about the terms of the deal. How much in gross rents? Expenses? NOI? What do the leases look like? What opportunities do you have to reposition and raise rents? Generally speaking, owner financings is ideal if the terms make sense.

Also I didn’t quite understand how you painted your mentor as having to work to his grave and then said he offered to sell you his million dollar commercial RE portfolio?? Is it just not cashflowing sufficiently for him to chill?

Good luck either way. Sounds like it could be an opportunity in there somewhere.

I've used Mark Fleckenstein in Richmond for many transactions and he always did a good job. 

You probably are looking at some type of joint venture arrangement where you find the deal and take it to the investor. Other duties you could take on might include overseeing any contractors or maybe even property management. Basically, there is groups of people with more money than time. So leverage your time to find deals, and they will fund the project for whatever split you can negotiate. All you need to do is figure it how to bring the value to the relationship (which imo normally starts with bringing the deals).

Congratulations on closing the deal. You sound like you have a decent enough plan but you’re undercapitlized. I’m not trying to be that ******* but you have to plan for this with this type of property. 

With that said, let tenants know there’s new management who will enforce the rules. I suspect your numbers will get worse before they get better so prepare for that too. Make sure you’re able to turn over the units once you evict. Is this a reposition play? 

You should hire the best  professional advisors starting with a CPA and an attorney. 

Series LLCs aren’t available in all states so check with your advisors.

You didn't say how much equity you have in each property/LLC but you could possibly reduce the amount of LLCs and with the money saved significantly increase your liability insurance. Confirm with your new Advisors what might work best.

Good luck.

If the contract runs out I’d still see if I could keep the financing in place. Then use that to try to get seller back to table. Unless Seller has another buyer on deck, then seller would be starting over too. After 6 months he wants to close too! You will likely pay a premium for your ****ery though, but I assume you expected that. 

Where do you plan to purchase? Are you only interested in Class A? What size space will your company occupy?

What type of business is it? Since the business has no RE and no other assets, is it something you could replicate with $260k?  Those numbers seem tight. Considering you are in a RE investmemt community, there seem like better ways to leverage $260k imo. Often businesses of that size mean you are buying a job. But let’s hear more about it so we don’t have to make assumptions.

Also if it made sense you could try to convince the owner to take a note in second position behind the bank (if bank is cool with that).