All Forum Posts by: James Storey

@Rick Trivedi if you haven't considered Indianapolis, Indiana, I would at least look into it. We have one of the fasted growing populations as we are constantly bringing in new jobs and commercialization over the past 5 years has been incredible. We are one of the value cities in the country that has a lot of growth potential.

When it comes to a particular CAP or determine your mode of investment (commercial or residential), it all comes down to your particular needs, competitiveness, and cost of capital. For example, with multifamily being so hot, it may be hard to compete on getting the best returns when your back is against the wall on making a decision for a 1031. On the other hand, if you are looking for some true passive tax savings and income, maybe a STNL might work for you.

I am biased towards commercial since it's what I do and it's the hardest thing in the word to manage across state lines.

James Storey, CCIM

Though I haven't held an STNL for over 10 years, I can attest to their strength through my experience as portfolio manager of STNL that were held for over 20 years. As the demand for space increases, caused by overall population growth, rental rates have followed suit. Sometimes rates have seen as much as 3.5% increase year over year especially within medical and industrial. 

As long as you buy in a good area and not super old, you won't have a problem keeping it leased and leasing it for more and more ever renewal. There are a lot of variables to consider though that is just too much for a post.

James Storey, CCIM

@Steven Burritt my specialty is actually medical real estate with several surgery centers, urgent cares, and clinics under my belt on the sale and leasing side. Unlike some brokers, I am actually invested in this arena as well since I truly believe in it and see large growth in the rental rates. Also, once a doctor becomes established in a particular area, they tend to not leave. The timing is actually pretty spectacular with this question because I am currently in the process of developing another Surgery Center here in Indianapolis. 

Feel free to connect if you would ever like to bounce ideas or just discuss.

James Storey, CCIM

@Bryan Mitchell Jim Baker is a beast! He is the past president of the Kentucky CCIM Chapter and I am the president of the Indiana chapter. We have collabed on a lot of things between the two chapter as well as brokers. 

Also check out these books when you are done with that one. These books, just like Jim's dive deep into what the monster brokers are doing. 

Commercial Real Estate Power Brokers by Jim Gillespie, CCIM

Brokers Who Dominate by Rod Santomassimo, CCIM

Thrive by Blain Stickland, CCIM

Its not that the CCIM designation is the driving force that makes you money. It's that it sets you apart and are able to discuss investment analytics and variables on a deeper level then other commercial broker. Again, im not saying that not having a CCIM means you don't understand the same stuff, but on average it is generally true.

In my experience, gaining the designation has been monumental in my very early career. I earned the CCIM when I was 23 years old and I know for a fact that if I didn't have it next to my name, investors and other brokers wouldn't take me as seriously given my age. I also recieve most of my business through referrals from residential agents in my company and it is encourage to refer to CCIM brokers.

Again, there are a ton of brokers making bank without the designation however, the designation is an indicator of success because you actually have to be producing to get the designation just like the SIOR.

James Storey, CCIM

I use ESRI ArcGIS mapping. Use it for every commercial industry type. Little bit of a learning curve because you can customize reports and analysis based on your own equations but once its setup, its very effective and works great.

James Storey, CCIM
 

Ditto to wait @Greg Dickerson said. Try to make Due Diligence as long as possible. The longest I have personally used and seen has been 90 days in which the purchase agreement will have a list of conditions for the buyer to be able to back out in the timeframe and receive their earnest money back. For some of these deals, I have seen the seller try to get 60 days of due diligence with an option to extend by 30 days with hard earnest money. Try not to get trapped into something like that.

Makes sure you have a good architectural team on your side that understands there is a timeline to be able to complete schematic design and run surveys. Possibly even a construction manage that will work in tandem with the architectural team though it can be more effective to bid out the schematic design after completing. These things are what takes up most of the time in due diligence.

James Storey, CCIM

As someone with an undergraduate and masters degree, a small portion of my education actually translated into my career in real estate. Although, I will say that the finance, accounting, business skills course I took allowed me to sound confidently and precise on issues with my commercial and investor clients, the actual education wasn't all that helpful in starting out in investing.

The most important part of my education was the connections I made and the spheres of influences I was able to tap into. When they tell you in college that networking is where its at, believe them. Being in business school, I was able to put some really well known people in my contacts to do business with later.

James Storey, CCIM

It all comes down to preference and risk tolerance. Contrary to popular belief, adding debt does add risk. Therefor with added risk, there has to be added reward. Thankfully, with low interest rates, the cost of capital is significantly lower then unlevealed yields in today's property markets and in almost any situation, returns will be leveraged in a positive manner with debt.

In the end, you do you. I have a lot of clients who start off all cash and then move into buying with leverage later. Also, I have people who won't do anything unless they are able to pay all cash. It all comes down to an individuals strategy and risk tolerance.

James Storey, CCIM

Welcome to the Indy real estate market, Christian. Look forward to seeing your progress and building a great legacy. Hats off to you for your initiative on the charity for Parkinson. I am sure your grandfather would be very proud.

Best Regards,

James Storey, CCIM