All Forum Posts by: Antonio Mcclinton Jr
Antonio Mcclinton Jr has started 5 posts and replied 14 times.
Post: analyzing a self storage facility
- memphis, TN
- Posts 23
- Votes 2
Quote from @Joseph Gozlan:
@Antonio Mcclinton Jr ALL commercial real estate is valued using the same formula: Value = NOI / Cap Rate.
Seems simple but there's a LOT going into those parameters.
NOI = Net Operating Income: All the income (money going into the bank) less All Operational Expenses which means all the money that goes out of the bank EXCEPT debt service and items that would be considered capex.
Cap rate is a factor that's determined by a lot of things and is very specific to your sub market.
As @Henry Clark mentioned above, there are a lot of factors to consider in underwriting a commercial property and getting yourself educated is critical to avoid very costly mistakes.
As for Henry's advice to build over buy, I'd say it's market specific. Some markets the cost of the land would not make the new build cheaper than buying an existing one.
Post: analyzing a self storage facility
- memphis, TN
- Posts 23
- Votes 2
Hello everyone, I am currently looking at self storage facilties, the more and more I educate myself in them the more I want to jump in. At the moment I am trying to learn how to analyze them so I can start making offers, any tips on how?
Post: contingencies on a multifamily
- memphis, TN
- Posts 23
- Votes 2
I have a question for those that invest in multifamily, what contingencies would you ask for when purchasing an occupied 8 unit, what questions would you ask and what would make you withdraw your offer?
Post: questions about buying rent ready properties
- memphis, TN
- Posts 23
- Votes 2
thanks for that, I forgot about the equity side of it
Post: questions about buying rent ready properties
- memphis, TN
- Posts 23
- Votes 2
thank you for putting that up, I didn't know myself the percentage but I have just recently went to a rei meeting and the speaker was pointing how much memphis is growing, from real estate, jobs, and etc
Post: questions about buying rent ready properties
- memphis, TN
- Posts 23
- Votes 2
I work at a storage facility and alot of people that get storage are moving and it is from moving to were they are originally from, some may believe the crime is too bad, moving for better jobs, no the properties aren't brand new but they are 10 to 15 years old, sellers are moving quickly but for some its due to there house selling quick, the market for rentals in memphis is good but I also see alot investment companies just buying properties and just putting a rent sign up and no there not thrashed
Post: questions about buying rent ready properties
- memphis, TN
- Posts 23
- Votes 2
Hello everyone, hope everyone is doing well. I wondering could anyone give me some input....I am finding properties that have been sitting for a while on the mls and some of those properties are just about rent ready but I do know enough to know there is always something that can be replaced, fixed, etc. I wanted to ask what are some disadvantages to buying a property thats already rent ready?
Post: requirements for a hard money lender
- memphis, TN
- Posts 23
- Votes 2
I wanted to know is what is the requirements for obtaining funding from a hard money lender?
Post: buying multifamily for the first time as a rental property
- memphis, TN
- Posts 23
- Votes 2
its in the downtown area and according to the description the units been renovated
Post: buying multifamily for the first time as a rental property
- memphis, TN
- Posts 23
- Votes 2
thanks for the help, I do agree that it might be too much for me right now especially with it being my first deal. I have set out alot of real estate goals that I know are feasible but trying to buy a million dollar multi family might not be in the cards at the moment