All Forum Posts by: Grant Steiner

Hello BP,

I am looking for someone familiar with self-directed IRA investing or a custodian to come and speak at one of our local meet ups here in Minneapolis. I know there are a lot of rules a SDIRA needs to follow to fully take advantage of the tax benefits and make sure you are in compliance. I hope this meet up could give investors to ask questions and learn more about an alternative strategy for getting into the real estate game. Any leads would be greatly appreciated!

Thanks,

Grant Steiner

Brad,

For commercial deals a commission should always be expected. Did he bring the tenant to you or did you find them on your own? I highly recommend always paying brokers because they are a main source of deal flow at your commercial property. Owners who do not pay leasing commission quickly get a reputation in the market and tenant rep brokers will exclude your property from tour lists if they know they are not going to get paid.

Grant

Xaxuan,

Here are my thoughts on the questions you posed.

1. As long as the tenant does have a renewal option that specifically states the renewal terms you should be good to convert them to a NNN lease. One thing to note, make sure to see what their NNN rate would be on a gross basis, since it can be tough to get tenants to switch to that structure if their rent increase is substantial.

2. I would say CPI is a fairly rare escalation format. Depending on your market I would suggest fixed rate steps (ie. $0.50/YR or 3% increase/YR)

3. Do they have a lot of vested capital in their spaces? If so, that can make them more sticky and give you more leverage. You can throw them to Tenant Improvement dollars to sweeten the deal to get them to do a longer term deal.

Hope this helps.

@Aaron Ohri , I recently went through the same decision-making process and decided to buy. I am currently house hacking with 2 other friends. I went to college in Omaha for 4 years and lived there for 3 after, so feel free to PM or give me a call if want to know more about the market and good areas to look. I would just make sure that you have enough of a cushion when you run the numbers to pay for any needed repairs or improvements with the money left over after your downpayment.

If you are still having issues getting the smell out after replacing the carpet I would recommend renting or purchasing an Ozone machine.  They are less than $100 and will eliminate the odors. 

Thank you, everyone! Can't wait to see where the start of this journey takes me. 

Hello BP community,

I am a new real estate investor and looking to get some advice on my first property purchase. I am 26 years old and reside in Minneapolis, MN. 

In an ideal world, I want to purchase a house/duplex that I could live in and rent out to friends for a year or two before turning it into a full-time rental property. This property location might not be exactly where I would like to live in 2 years if I get married, so I am wondering how big of an impact it would have when I try to get another mortgage on a second property? Has anyone else done something similar or is there a better strategy that I could try for my first real estate investment?