All Forum Posts by: Jonathan Orr

@Brian Schilling PM me, I have a property in AZ that I need transaction funding on soon.

@Account Closed My contractor does have some suppliers he uses, however the particular project is quite a distance from his "home base"  he is doing this as a favor to me so I am trying to help him out find some more local places so we dont have to take any delivery or transport fees

@Charles Peralta A book I like that was written by a NY developer called "The Real Estate Game" really is useful in learning from scenarios instead of a how too.  

However, I will tell you one thing that a big developer told me out here in CA.  If you want to do development (specifically ground up), go find a piece of property you like and can do research on.  If you think it fits then just go for it.  

In other words, go do it and figure it out.  I know that is a very rough way to do it but I will say I learned more about trying to do a development by just going out and attempting one my first time then I ever learned through other people or school.

Hey BP! I am replacing some exterior doors for a flip and I am running into a problem with the materials. Everywhere I look for cost effective doors I run into the places that want to do a home consultation and want to install the doors for me. All I need is a place to purchase the doors (particularly french or sliders). They will be standard size so no custom ordering should be needed. My contractor I have for my flip is more than capable to install and replace (his right hand guy does door and window installation normally).

Can anyone recommend a site or a place in Southern California (Orange County or Los Angeles) that I can take a look? I have been looking at Home Depot and Lowes but think I may be able to get better quality and better pricing elsewhere.

Thanks!

Hey BP! I am replacing some exterior doors for a flip and I am running into a problem with the materials.  Everywhere I look for cost effective doors I run into the places that want to do a home consultation and want to install the doors for me.  All I need is a place to purchase the doors (particularly french or sliders).  They will be standard size so no custom ordering should be needed.   My contractor I have for my flip is more than capable to install and replace (his right hand guy does door and window installation normally).  

Can anyone recommend a site or a place in Southern California (Orange County or Los Angeles) that I can take a look?  I have been looking at Home Depot and Lowes but think I may be able to get better quality and better pricing elsewhere.

Thanks!

@Andrew Thomas Sherman A LLC is a normal occurrence for properties. The reason is because when you place a property in a LLC it gives a level of protection from you personally if anything were to ever happen. Every time I develop a property or one of my investors buys one, I always have them put it into a new LLC, just for the protection. With that being said if you make a personal guarantee then it can be tough to protect yourself. It all matters about the amount you have and the right bank to work with you.

However, my accountant would probably have a fit if I ever ran a business out of a LLC. A corporation can be much better in tax savings over time, maybe not to run a business but to hold property, a LLC is the way to go.

It really depends on your experience and cash on hand.  If banks look at is as an investment property and you are putting in enough equity then there should be no issue, I would go to the bank you have your business account with, or a bank you have done business with in the past.  I really guess that it is alot of meet and greet to find the right one that will work with you specifically.  This will be a good learning experience so you know which ones will and won't work with you.  

Good luck!

I think an appraiser may be a viable option like @Eric Schleif said.  If you are acquiring the property the lender will most likely require an appraisal anyways.  It will run you a few hundred but is only a one time thing.

However, seems odd that the selling broker does not have comps that support his list price.  

One thing that you as a buyer should focus on isn't the actual price but on the CAP for a commercial property like that. If you can determine the CAP then compare it with others in the comp area and see where those cap rates land. Reason for that is you may have a small industrial built in 2010 that can comp similar with a larger vintage property because of its rental income. When looking at commercial deals I like CAP rates vs actual comps, with that being said I do look at comps to make sure it is in the same realm but CAPs are usually first for me and that is something I can do without pulling comps, instead I am able to call local buildings that are similar or may be a little bigger and small to get rental info. I also can look at active list properties to see how those cap rates compare

However Compstak.com gives you one free comp I believe. So does propertyshark.com

@Dorian Paidas you can always talk with a local commercial broker to gather comps.  However, they will probably want a piece of the pie or a commission if you are trying to purchase or sell a property.

best thing to do is find out as much about the property as you can.  See if the property will allow your vision.  This is probably best by doing research through the county and city Geographic Information System (GIS).  Also, call the listing agent, they will get you alot of information (hopefully).  You can then start the process of talking with the city that the property is located in (talk to the planning department) find out what you need to do to get it to the next step.  It is possible for you to develop it yourself, or if you are still nervous you can always get the property under contract once you do you due diligence and then try and take it to a local developer to partner with, or even wholesale.

Good Luck!