All Forum Posts by: Jonathan Orr

Originally posted by @Account Closed:

I have the course if anyone is interested. It's the real deal.

 Anton, very interested in learning more about the program and it’s potential.

@Ariel Jeidel

I appreciate your comments. It is funny out here in California. A majority of tenants (retail and/or industrial commercial) are so use to NNN that if you mention anything else it is almost a turn off. I guess that is partially due to the fact if the tenant is paying for their own utilities they can write the expenses off when it comes to taxes. However it is good to know that with CAMs you can expense what I, a property owner, would be paying to have the property managed (or at least a portion from what you are saying). Thank you for the help.

@Chad Hale Thank you for the information.  I figured as much but wasn't quite sure.  In talking with a few property managers I know that have done commercial management.  The fees are usually based on a percentage of income the property draws from leases.  The CAMs are then expensed back to the tenants typically.  Thank you for confirming that Management fees are included in the expensing back to tenants.  Really helps.

Hi BP I wanted to get your opinion on what is included in Common Area Maintenance fees (CAMs). I know that most if not all fees for the maintenance and care of the property are included. However one thing I am wondering is if you have a tenant (I am speaking from the commercial side of real estate) and have a NNN lease. In your CAMs charges, do you include the fee for a management company or manager? I am looking at developing a few industrial properties and want to be able to base my underwriting correctly if I should include the property management fee in the CAMs once the property is up an running.  Looking to pick the brain of any commercial property managers or management companies. Thank you!

Hi BP

I wanted to get your opinion on what is included in Common Area Maintenance fees (CAMs). I know that most if not all fees for the maintenance and care of the property are included. However one thing I am wondering is if you have a tenant (I am speaking from the commercial side of real estate) and have a NNN lease. In your CAMs charges, do you include the fee for a management company or manager?

I am looking at developing a few industrial properties and want to be able to base my underwriting correctly if I should include the management fee in the CAMs once the property is up an running.  

Thank you!

@H Patel I feel your frustration.  I am in the hotel and commercial development industry.  This site is mostly dedicated to single family real estate however, you may be able to find some people in the landlord/ tenant forum that have PM experience for either hotels or multi family properties that could translate to your issues.  Or you may have luck in the commercial forum.

Wish I could help more. Good luck!

@Jessica Scott  fellow Californian! I would say first is finding what market you want to be in for your properties.  If you are thinking of the Oakland/Bay area it will be tougher than say Sonoma county just because of the density and pricing issues.  I would say, get with an agent or consultant to help you and determine a game plan of what you are looking for, what pricing you want, and your strategy (flipping, long term hold, house hack, etc...)

From there you now know what you will need to finance the properties, which means either finding a lending platform that compliments  your needs so you don't have to empty your pockets on one deal.

Hope this gives a little insight on what my first step would be.

@Yafei Tang being a small town that would scare me too.  Even though the deal makes sense from a numbers perspective, does not mean it is automatically going to be rented and or sold.  With smaller towns there is always that gamble.  I would say if you like the deal, try to find out the population growth over the past couple years.  If the area is growing it may make lenders and yourself more comfortable with being able to rent it.

@Aaron Humerickhouse I think you are on the right track.  I think you can get more specific on property evaluations, such as specific pricing on a per sq ft basis, how long properties are on the market, do they usually go above asking, etc...

I would also include some more about the jobs.  Such as median income, major employers in the area, average age of individuals in the area.

There are a ton of things each person looks at when evaluating an area.  I guess it really is finding the blend you like and what matters to you the most so when you purchase or sell a property you can use those as knowledge when dealing with others in the industry such as lenders, property managers, investors...

I will say if I had a top 5 for what I look at in areas is 

1)Median income

2)jobs in the area (major employers)

3)population and changes year of year, 

4)future city plans,

5)competing hotels and apartments 

Those are my five but mine may differ than others because my focus is in hotel development.

Hope this helps.

@Arturo Borges most family offices require a relationship to raise money from them.  Additionally family offices are very specific in what they invest and want to partner with in so depending on your deal you would need to find an office that fits your deal.  There is a podcast out there called "Family office podcast"  it is a group that consults for family offices and I believe they have a system for connecting investors with.  May want to do a google search to find them, I can't remember their information off the top of my head.