All Forum Posts by: Marcello Di Gerlando

@Greg Dickerson

Thanks again. I downloaded a file from the adventures in CRE wed site. Wow!

BP has been an invaluable resources to me for almost 10 years. One of the most powerful aspects of BP is the access to user documents like proforma's , leases, checklists etc for all different types of deals.

Can someone please help me with the link to the File Place in BP?

@Greg Dickerson

Thanks. 30%. sounds like a very safe margin.

I've heard the term soft costs used by residential developers when separating costs of land, debt service and the hard costs of construction. The rule of thumb understanding I have is that soft costs should not exceed 15% of hard costs. Have you heard this before or anything similar? I want to be able to plug in different assumptions and war game this project in excel.  Do you know of any proforma calculators I could use? Thanks.

@Ronald Rohde

I will investigate the $6, $6.5 MM exit. As far as experience in attracting national tenants, no one has domain knowledge on my team. I do know a local developer working on another project who has experience with national tenets I believe I could get an audience with him. 

Since I've been on BP I have taken advantage of the proforma spread sheets that I could pull from the users file place...I cant seem to find access to the file place?  I was going to ask for a recommend pro forma excel file for a commercial project of this scope. BP user docs have always played a key part of all the deals I've done since 2011. This is showstopper for me. @Joel Owens do you know what happened to BPs User File place or how I might access it? 

@Joel Owens

Thank you. I'm not sure of the right question here. How much more would you need out of it? 

1031 is not going to happen for this deal. My target exit 3-5 years would be to owner-finance the resale. 

Target tenets; a mix of national and regional retail, bar-restaurant. Its a C the goal is to make it an A.

@Greg Dickerson

Thanks for your reply. The $25sq is about right (ARV not current) This property is slap dead center of Colorado Springs. Within two blocks we have both a Marriott hotel and Hilton hotel,a 15000 capacity stadium and the Olympic museum all under construction. Multiple high rise apartments either just finished or in construction (400ish new apartments all within walking distance). Gentrification is going on and I believe most of the new wave construction is fueled by the influx of aerospace/space dollars pumping in from the private sector and DoD. Can you help me understand how you would calculate a 30% margin here. Thanks again.

Hi @Joel Owens. I'm hoping you could take a look at my deal. I have been reading your posts since 2011. Since then, completed a variety of different real estate deals including fix and flips, hard money lending and an STR in ski country; all residential. However, I have never bought a commercial space. I have a shared interest in a commercial space but that is just not the same thing.

Take a look at the details below and please give me your opinion using CCIM/Rule of thumb/beer-math/inter web BP analysis and tell me if this deal is worth a closer look or should I shelve it without a second though. Much appreciated.

I'm looking at purchasing a marquis building in downtown Colorado Springs. Currently a crappy sports bar with no cool factor at all which has been operating miserably out of this space for as long as I can remember. The building is a former haberdasher/clothing store with 1900 charm. There was 2004 remodel that updated mechanical, electrical and sprinkler systems. It has a kitchen and a liquor license. 2 floors of lease space. I anticipate sub dividing and remodeling to incorporate mix retail/office and bar-restaurant spaces with a lot of cool factor; multiple tenets. I'm not interested in operating a business out of there myself. I'm simply interested in this space for the real estate potential.

16,000sf downtown marquis building asking $3MM. 

I'm anticipating a $1.2MM remodel and a 1yr holding costs of 250K. 

30% equity position with down payment on on the full $4.2MM. (Building plus rehab)

After rehab lease space should average $25sqft NNN. With the potential to ask for $50sqft NNN.

ARV once fully leased. $5MM

happy to share more info. let me know what metrics and details you need.

Thanks 

Marcello

@Jamie Pritchett

Don't waste your efforts on the 2% rule in Colorado for an LTR. Unless you bought decades ago you may not find those returns on an LTR. Getting 1% is a stretch. You may find an outlier but the 2% rule of thumb is a total unicorn, especially in ski country. You would need to be in the mid-west or south to find those types of returns. Running a lean STR in Dillon you can squeeze 2% or better and do way better on long term appreciation than you would in other parts of the country. Recommend you get your hands on a larger property (no HOA) with multiple bedrooms, price per square foot can be a lot better than a 3Bde 2Bath condo; Ski tourists like to travel in packs which should keep it full without a problem.

Check out our STR in Placer valley. We've had it running since DEC 6 2019 and have over 50K bookings averaging $650 a night.

https://www.airbnb.com/rooms/40807609?location=Alma%2C%20CO%2C%20United%20States&adults=16&source_impression_id=p3_1580703126_PgONPwBn7lyJcDvq

I have an STR near Breckenridge CO that I stated operating this ski season. What immediately comes to mind to avoid the increased tax rate and take advantage of the 31day rule. Is to take the property off the market on the two slower seasons for a few days and occupy the property strategically during off weekdays. Who's to say which family or friends are occupying my second home ( I only live 2hrs away). With a potential sharp decrease in STRs in the area the continued demand from tourists will also offer a potential increase in rates that will offset the days occupied by me, my family and friends. 31 days is roughly 8% of the year. If I can still book for 92% of the year at the current tax rate I would be doing just fine. The reality is that I don't need to get anywhere near 92% occupancy to be satisfied with my STRs performance. In fact this bill proposal may put up barriers to entry for new investors looking for STRs in ski country; good for me. My new concern is buying a second STR. Don't know that it makes sense if this bill is passed.