All Forum Posts by: Mason Clark

@Mike M. The stock market can be leveraged as well. If you are going to use leverage and an example of little down to finish your deal then compare it to the stock market and using leverage there through margins. If you are unfamilIar then get educated on this as well. It’s deceptive to compare the two the way you did because as others said it is apples and oranges. Make it more apples to apples to be reputable in what you are saying. I feel, if done properly, real estate can return better than the stock market consistently. However, the stock market is a great tool for all investors to use.

@Michele B. Got it. I don't get on the web version but now I found it. Any idea on how I can do a waterfall projection? We do a lot with value add properties. The one specific one sits 40% vacant and we will be adding additional tenants to increase income. With this tool I haven't figured out how to add this variable in to the report. It only lets me put income in but if I put in what it is currently at or what I expect it would skew the initial report. Thoughts?

@Michele B. Haven’t explored that yet. Could you explain a little more and where to find it??

Does anyone have any experience using the software Argus? We are looking to potentially start using this for analyzing commercial properties and projecting cash flow. Mason

Does anyone have any experience transitioning tenants from a previous owner on gross leases to NNN leases? How did it go? How did you make it a smooth transition? Or any other opinions on this? It is office space with professional tenants. Financial, medical etc. Mason

@Zac Gavin if you’re looking at buying his business, owner financing will definitely be a major benefit. It will be more difficult going through traditional financing where you need to provide all details related to the business you will be operating and still potentially being denied. He knows you, you know him so the trust level is already there whereas a bank needs to figure out if they trust you to be able to pay them back. You will probably want to get a commercial agent to see if they can get a better idea of price based on comps in the area and how your market is. Or you can do this on your own without an agent. You probably want to go through an inspection as well to make sure there are no major issues just to protect yourself. Get everything in writing and i always ask for a low rate because you never know If you dont ask. It just needs to be mutually beneficial for you both

@Mindi Rosser I would say you do need to immerse yourself to fully understand it. Would you feel confident working with residential buyers knowing 50% of what you should? You’ll be dealing with businesses who often times can smell when you don’t know what you’re fully doing and you’ll be fired after the first meeting. With that said, I definitely feel commercial is the way to go. You can make money selling, buying and negotiating leases. Purchase prices can typically be higher but transactions can be fewer and far between. You’ll run in to not only local competition but national competition as well as people do want the best of the best selling what often times is their retirement plan. There are so many commercial avenues to sell - office, apartments, medical, land, manufacturing, warehouse, storage and more. That’s why it may make sense to specialize in a few and truly be an expert. Hope this helps!

@Michael O. There are quite a few different strategies to use. I would probably never lock It up in a CD even if they generate “high yields“ because compared to what you can get with other strategies, they are small but are less risky. The below may be better If you dont need right away. 1.) Open an individual investment account and use a high yield income approach. Depending on the funds being held it can generate a few hundred dollars in passive income reinvested in to the principal. It is more risky than a CD but could easily generate 3x the rate on it. You will pay tax on the annual income and gains in the account. 2.) Tie an individual account with a Roth IRA. Use the above but section off enough to max out a Roth IRA every year. After you satisfy a 5 year wait rule you can access any of the money you put in (principal). With this strategy you will defer any income or gains in the account of the Roth and will always have access to the principal after the 5 year rule. You can invest these accounts however you like and be as risky as you want. You give up being able to use the gains until retirement and there is a max you can deposit In a Roth. 3.) If you inherit an IRA, look in to Ed Slott and read about stretch IRAs to see if it makes sense for you.

Looking for retail space for sale. Anybody have anything interesting available? We are expanding nationwide and would be interested in seeing what else is currently on the market. Thank you! Mason

@Zach Quick just verbal