All Forum Posts by: Greg Scully

What are you getting for assign parking spaces?

I'm looking at some vacant land on a potential property to add additional parking. Just adding a basic paved lot for residents to store a trailer, car, rv etc.

@Aurelien Bonin - Make sure you are clear on the specifics for the MB deal desk.  It's a small percentage of the market, but it can be valuable resource should you find the right deal.

@Bryan Oro - Have you considered doing a refi on the house that has 90K in equity?  The return on equity is 0%. Can pull some equity out, maintain conservative leverage, and still have it cash flow?

Keith Weinhold has some great info about this on his podcast.

https://www.getricheducation.com/podcast/

@Justin Hannah Ask for referrals on BP or other forums and interview them specifically about going direct to seller and being a transaction facilitator for investors. If you bring a seller to them with a negotiated price in hand, you've done a lot of the hard work.  

Most markets have a handful of brokers that close the majority of commercial transactions.  I'd focus on finding them.

@Justin Hannah - You may benefit from using a commercial broker.  Some buyers will pay the commission in order to keep the seller whole on the purchase price.  

@Brian Burke - For pro forma purposes, what's your calculation for terminal value (thank you @Tyler Kastelberg)?

I'd appreciate any additional responses from other syndicators.

@Brian Burke - Thank you for your detailed response.  

@Taylor L. - I've looked at three popular calculators and each one does it differently.

Removing them will increase the NOI substantially on larger deals and of course makes the projected returns look good. Not surprisingly many of the OM's I get do not include it in their pro forma.

I have been told that it's the "industry standard" to not include it in the final sales price projection.  

When projecting your returns to present to investors, do you use the NOI before or after Cap Ex reserves and asset management fees? Specifically the sales price.

Thanks,

@Beary Bowles -  I prefer 3rd party management.  Should your handyman get a better offer, you could be left in a difficult position.  The same goes for your property manager.  Professional managers typically have more and better resources for most scenarios.  You can make more money managing yourself, but it can be time consuming.

There are numerous software companies that may be able to solve the technology problem.  Here's an article:

https://financesonline.com/property-management/