All Forum Posts by: Johnny Harrington

My uncle is a former Marine. Like Trevor, though, he has no interest in REI. Shame.

In your case, a VA loan for a triplex or quad might make sense - house hacking, basically. The VA loan would allow for a very small down payment - they could live in one unit, and rent out the others.

  Factoring in taxes, insurance, management and maintenance, along with vacancy rates, it should be possible to have the rental income service the debt, pay utils, and have some left over. Could get paid to live in the new property.

  If they had more to invest and wanted more than just expenses paid and some extra cash every month, a small apartment building could do the trick. 

Looks like I phrased my question badly! Apologies all around. The agent is representing a buyer that needs to do a 1031 exchange in a fairly short amount of time - so he's literally the buyer's agent.

  In any case, he was having some trouble locating a property that covered all the needs of the client, and he reached out to his professional network to assist him in bringing some things into the pipeline for the buyer to have a look at.

  I responded with the listing, and it's killer! Annnnnnd he doesn't want it because it isn't a pocket listing, in spite of the fact that it gives him everything he said he needed for a deal to get done. That's my quandary.

 That's really good to know, thanks! Like I said, I'm fairly new at bird dogging for people at this end of the spectrum - my bread and butter is multifamily properties between 2-4 units and SFRs, so the rules of engagement are totally different. Thanks for your input!

Partly true - I am playing middle man and looking to get an admin fee, but the numbers are verifiable. It's not a question of believing me, it's all in the 2014 P&L statement... and he has access to the Seller of Record, so he'd be able to ask anything he wanted on a conference call. If I'd lied about anything I'd be looking mighty foolish! 

  In this scenario, since it seems the primary cause of concern rests on my shoulders, how would you fine folks present the deal? It's really a fantastic property, and it'd be a shame to swing and miss with it.

The 'he' is the agent, yes. The criteria is pretty simple: 4-6MM, 10% CAP or higher, 11% cash on cash, 25% down payment. Mine delivers all of that, at a higher CAP, with the potential to add another 30% to the bottom line by continuing development.

  It would be a big payday if he got both sides, I suppose. I didn't think of it on those terms. Makes sense, though. We're all in the game to make some cash.

No, I'm not the buyer. I'd totally buy this property - it's a 15% CAP pulling in nearly $775,000 a year, net - and the upside could add nearly a third to it, with proper oversight and development. If I had the money I'd have closed the day I finished due diligence. Alas, I am not a multimillionaire. Yet.

I understand that once a property is listed, the competition grows, and the pool of people with awareness of the offering increases... but this one just went live, fits all his criteria: the price, the CAP rate, the potential upside, the cash on cash, it all fits. But he's ambivalent because it hit the open market last week.

  I'm fairly new to commercial properties selling in the millions, so I'm deferring to you, Bigger Pockets! What's the deal?

Trying to make the 50% rule work if you're buying at retail prices will limit your chances of finding a deal that works. Read up here on the BP forums about short sales, wholesalers, and foreclosures. Like Rusty said above me - the sheer amount of information available on this site is staggering.