All Forum Posts by: Jared Haxton

@Jeff Costa thanks for the reply! I will dm you shortly!

@Sean T. Thank you for the encouragement! I'm just trying to take action and examine deals and push them forward one step at a time! Even if this deal doesn't come to fruition, I am determined to get through the learning curves so I'm better positioned to do the next one!

In my mind, getting the capital together is the biggest obstacle. How did your first deals come together if you don't mind sharing?

@Jordan Woolf that is great advice! I was figuring I needed to have interested investors before I could engage an attorney about this prospect. Do I have that backwards? What team members do you need in place before looking for capital? What was the order of operations on your first deals? Thanks!

@Ronald Rohde Hey! Thanks for your response. I do not have it under contract yet. I wanted to find some interested capital before making an offer. I do need a team and all the necessary parts to make this deal happen. Do you work on deals in Arizona?

@Mike Hern thank you for the reply! I will incorporate all of that info! Are there places you like to look for this subset of people or does that type of contact typically come organically from your network? Thanks again!!

@Abhishesh Acharya this is a deal I came across through a friend of the family. My only experience so far in real estate is converting my primary residences into rentals. This is the first commercial deal I have examined. Nothing is underwritten. I am about step out and start looking for capital so I can make a valid offer.

Being so new in the arena, I am just taking steps forward and asking all the questions I can to keep pushing ahead! What would be my next step in the process here? Would love to make this deal happen if it pencils for everyone involved! Thank you for the reply!

Hello! I am preparing for my very first deal to pitch to investors and wanted to see what details I might be missing that an investor would like to see. I have the basic info but am not experienced enough to know obvious things that are missing from the details presented. Would love any feedback on how to put my best foot forward in this venture!

This off-market deal is 2 pieces of adjacent land (3.29 acres and .25 acres) that are zoned as General Industrial (M1 zoning in Yavapai County AZ. Details at bottom of post*). There is one office building on the land that has around 8 offices with break rooms, bathrooms, kitchens, etc.

The land and office space is mostly rented out and it brings in $10,200 in net rents per month ($11,600 income and $1,400 in expenses). There are 7 different tenants, six of whom are month to month but want to renew for longer-term leases. The owners want $2 million for the land and building and are not interested in financing any portion of it themselves.

THE BREAKDOWN

TENANTS

The building is two stories with a footprint of around 4900 sq. ft. and an additional 1552 sq. ft. upstairs. Total square footage is 6481. Some of the building is shop space that runs the full height of the building. The current tenants include a vehicle repair shop, concrete pouring company, Well-drilling company, food company, Industrial cable company, freight company, and diesel fueling station. Three tenants lease only yard space, three lease office space and yard space, and one leases just office space.

EXPENSES

The only recurring expenses the owners have are about $9,000/yr taxes and insurance, $400/mo in utility bills not paid by tenants, and $250/mo for office cleaning services.

VALUE ADD OPPORTUNITIES

My surface analysis is that most, if not all of the rents are below market and could be bumped up 10% or more as part of signing new leases. There is also about one acre of land that is currently being used as free overflow parking, scrap storage, convenience roadway and other random things. This space could easily be cleaned up, partitioned off, and used for a business in need of this special industrial zoning for their long-term operations or even simply adding a gate, a little more fencing, lighting, and 20-30 storage sheds/containers that could be rented out for $200+/mo each.

That concludes the basic details of the deal I am working on. Anything blatantly wrong/off about it? Would the deal make sense to a seasoned investor? What kind of equity/cashflow split might entice an investor to be interested? Negative criticisms are welcome as well! Thank you so much!

*M1 Zoning info is on pages 52-53 of https://yavapaiaz.gov/Portals/0/OrdinancesRegulations/Ordinance-Planning-Zoning.pdf

Hello everyone! I'm wondering about the mechanics of having your realtor make an offer on a house and ask the seller to carry part of the financing.

Let's say you want to buy a $1 million home. The seller has about $400k in equity and you want to see if the seller will carry $300k of the loan at 3%. The rest will be a traditional mortgage.

I'm wondering some of the following things:

1. Who/what kind of company would facilitate the seller financing a portion of the sale? What might the structure look like?

2. What would be a good sales pitch to the seller to get them on board with the idea? Tax benefits? Long term payments to the sellers family?

3. Would the company that carries your conventional loan need any special things if you qualify for the loan amounts just fine?

4. Has anyone here ever done this? Bad idea? Pitfalls to watch out for?

Thank you! Looking forward to seeing other thoughts on this!

 Thank you for the recommendation! I will give them a call today. Appreciate the advice!

 Thanks for getting back to me! The two LLCs are not connected to the properties. Just random businesses that do little things here and there. I will take a look at the book you recommended as well! Are there any specific companies that you use to manage your portfolio that you like to use? Thanks!