All Forum Posts by: Matthew Drouin

@Gerald Moore

Also Quickline Capital is a hard money lender that services Rochester!

@Gerald Moore

I’m glad you are considering Rochester!

Beware of the lower price points though! You won’t be able to attract good tenants. Good tenants want to live in better areas and you have to pay for them!

Buy the most expensive most desirable real estate you can find that cash flows!

Are you living in Rochester currently?

Hi everyone!  I was wondering what real estate meetups were out there in Rochester, NY?

Find your real estate tribe!  Regardless of your experience level FFRIEA is the right community for you!  We foster collaboration, masterminding, and networking dedicated to the goal of helping people build generational wealth in real estate.

Check out Western New York's ONLY Real Estate Investors Association headquartered in Rochester, NY!

Join us at our main monthly meeting - networking focused with a short educational segment. Show up any time after 5:30 for networking and refreshments, stay for our speakers at 7 and hang out for more networking until they kick us out!

NEW VENUE - Join us at Eagle Vale in the ballroom as we move to a larger location and officially introduce you to our new leadership!

Free to attend for everyone - our price is your email address so we can make you a free member and get you discounts & rebates from Home Depot and other national partners. WE DO NOT SELL OR DISTRIBUTE YOUR EMAIL ADDRESS TO ANYONE.

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Every 2nd Thursday of the Month at Eagle Vale Golf Club, Fairport

5:30PM - Networking Start
6:15PM - Food & Refreshments
7PM - Speaker
7:45PM - more Networking!

@Courtney Nguyen

Boot the nail salon.

Relocating Cricket and getting franchise approval is going to be a pain in the butt and also relocating and buildout simultaneously is going to put both tenants out of business for a bit.

I would offer the nail salon an early termination to accelerate the move so that you don’t run into delays.

Although Cricket isn’t the highest quality tenant, a national tenant definitely gives a halo effect on your whole plaza from a valuation standpoint.

This sounds exciting!

@Brady Bitter

I’ve used a SBLOC to fund many of my deals. I like it because it keeps my money working for me in between finding deals, so I don’t have cash sitting on the sidelines getting chewed up by inflation.

That being said, if you have equity from day one. I would treat this investment capital as temporary, less than one year. Buy the property, lease it up and refinance.

One thing you’ll want to know about the credit facility is not necessarily the margin call parameters, which I wouldn’t be concerned with if there is a significant amount of equity in your investors securities securities portfolio, but what are the other terms?

My SBLOC requires that I pay it down to $0 once a year and keep it at $0 for one whole month. Have they ever done this? Not yet. But it’s something I tailor the business plan to just in case.

So your investor could get caught in having their loan called with not a lot of notice if things change. If they don’t satisfy that call, the broker could force a sale of securities, making them incur unnecessary tax liability.

Let us know which brokers offer the best SBLOC terms. I’m curious.

I want to know interest rates and maximum LTV for the SBLOC!

@Trevor Fulkerson

A few things:

1.) You are right to seek a partner that brings experience to the table! Especially if you buying something that is vacant etc. I think that would be non negotiable.

2.) What’s the environmental look like? I’m assuming because you are going to want this thing bankable eventually.

3.) Have an extended due diligence period. Like 1 year on a property such as this. If you have to negotiate paying operating expenses it might be worth it.

4.) Hire a national broker to lease the facility. And one that had an industrial division.

5.) And because this is in a low velocity market, 2.5 hours from a metropolitan area, I wouldn’t close on it without some kind of specific direction in terms of who’s going to pay you to lease the space. Or at the very least, could you get some income coming in on the space to at least cover your carrying costs. Sometimes we think that we are buying a property so cheap that nothing could possibly go wrong. But I’ve seen this happen before with investors and they burn through a lot of cash, more than they think!

@Manny Su what’s the square footage of the property?

One thing that is very important is surveying what the specifications for newly built stores are.

Dollar General for instance changed their spec to an 8000 sqft minimum back a few years ago.

The last thing you want is when the lease is up, some developer building a store for them down the street a few years from now and losing the tenant.

Also NN is not ideal especially with the possible age of this current store and deferred maintenance that could mount.

And finally, how are you making the numbers work from a Debt Service Coverage ratio on this deal with your bank? Even with 30% down, I'm not sure it even meets a DSCR of 1 to 1

@Nate Miller how much equity would you say you have right now?  A cash out refi might be a great idea but just be aware that some lenders might look to see what additional cash you've put into the property from a value add perspective.  The banks I work with right now are being increasingly cautious of cash out refis without demonstrating the additional money you've put into the deal.

That being said, cash out refis on commercial properties are how I've built my empire.  You might have to call on several banks, so don't take "no" for an answer on your first few calls!

Hey BP!

If you are interested in Commercial real estate investing, you will not want to miss this Thursday's virtual meet up with Beth Azor aka The Canvassing Queen™!

If you want to create millions of dollars of value to real estate assets, you're going to have to learn how to lease up vacancy!

Beth Azor has mastered the art and science to leasing up commercial investment deals so we are really excited to have her as our key note speaker this week!

You will have the chance to get your questions answered right with Beth.  I cannot post the zoom link here (due to Zoom bombing) but I posted the link to our FB group where the live will be streamed as well as the link to the Zoom so you can hop in the room with this absolute legend!