All Forum Posts by: Matthew Drouin

Want free real estate legal advice? 🙋‍♂️

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Want to surround yourself with the most active real estate investors in Rochester?

Come to Freedom First Real Estate Investors Association - FFREIA.com monthly general meeting Thursday May 11th and rub shoulders with our community!

Steve Pheterson Esq. will be there spitting gems and golden nuggets as our presenter! So bring your legal questions!

All are welcome regardless of experience level!

For more information and to register for this free event, go here: https://www.ffreia.com/Events....

@Michael K Gallagher sadly I cannot point to economic drivers and catalyst in our area. We are a steady eddy kind of town. It’s more of a “butts moving seats” kind of market.

That being said, I see a trend of companies needing smaller space and being more price conscious. Gone are the days where companies desire trophy office space to impress employees and clients.

We see an opportunity in acquiring class A office space at a price where we can offer it out at class B pricing or make significant concessions to get class A pricing.

@Richard Herrera we love office and continue to buy it.

I would check in with a local broker who specializes in office and has a subscription to Costar to assess the health of the market and where the demand and weakness is.

We have been focusing on acquiring Class A office that has spaces that are easily demisable into smaller spaces.

We have been acquiring these assets on pricing based upon in place NOI and occupancy in the mid 9 cap rates in our market.

@Neil Cronkrite sounds like a great opportunity!

@Chris Seveney haha looking forward to it my friend!

@Neil Cronkrite why is the IRR lower than the COC? Usually it's the other way around. Are you expecting the cap rate to go up on an exit or refinance?

12% on a triple net outpatient surgical center seems pretty good.  Medical office tenants are pretty sticky.

What's the duration on the current lease?

Come to the Go Big! Live Podcast and be a member of our "Live Studio Audience"!

Go Big! Live is like the Oprah Show for real estate investors.  We will dive deep with an active commercial investor on their first large deal.  You will learn:

How they found the deal

How they funded it

How they ran it

And all the minutia of what it takes to do a large real estate deal.  Next week's guest is Chris Seveny of 7E Investments.

Over his career, Chris built an impressive portfolio, which included managing over $1B in new construction and acquiring over 500 notes in over forty states. He currently runs a $75M Regulation A+ offering open to accredited and non-accredited investors.In 2022, after 25 years working in real estate development and construction, Chris decided it was time to go big and launch two funds under Regulation A+ and Regulation D, raising $150M focused on the niche market of distressed mortgage notes with his business partner Lauren Wells.Chris's tenacity and continued desire for self-improvement have made him a respected voice in the industry. Chris will share insights into his success, as well as the challenges he faced and overcame when he decided to leave his W2 job and go big.
Get ready to be inspired with Chris on Wednesday April 5th at 11am. This is your opportunity to ask questions and learn from one of the best in the industry! You won't want to miss this opportunity to Go Bigger.

This event will be live broadcast on Facebook.  If you don't have Facebook, shoot me a message and I'll send you the Zoom link!

@Eric Sebast that is awesome news!  Congratulations on the growth!

First question.  How much equity do you have in the current buildings you own?  If you have substantial equity, you could cash out refinance and use the cash out proceeds to put down on a new building.

If that doesn't do it for you, you could do a sale lease back on your current building with a company like Royal Oak that specializes in sale leasebacks.  That means that you sell your building and lease it back from a company and use the cash to buy your bigger building.  You could do this through a 1031 exchange without having to pay capital gains.
You could negotiate a clause to retain an option to buy back your old building at a certain price when you were in the position to do so.  It would probably be at a higher price than what you sold it for but still make sense anyway.

Of you could partner with a sale lease back company to purchase the new building in partnership with them.  The value you would provide is long term lease income.  The sale leaseback company would provide the cash.

Or you could partner with a real estate developer on the purchase to put of all or most of the cash on the new acquisition.

Hope this helps!

Come to Western New York's premier Real Estate Investors Association monthly meet up!

Get belly to belly with other active real estate investors in your area!  Great opportunity to network, build relationships with like minded people and grow your real estate investing knowledge!

This event is free and open to the public.  It's a casual dress happy hour format.  Enjoy some drinks and pizza and real estate connections!

More info here (register for your free guest pass at the lower right hand corner of the page link below):

https://www.ffreia.com/Events....

Martin Grizzanti is going to bring the fire!  Rochester, NY