All Forum Posts by: Naresh Mistry

I am looking for good multifamily opportunities $2M-$7M in the Central Florida area where seller is willing to finance some of the purchase.    Preference is more fractured condos/townhomes or individual units in one location as opposed to a single apartment complex.   Looking for suggestions on the most optimal path to find such opportunities.  I am already searching on the usual public sites like loopnet etc.  Is it worth pursuing a strategy to locate owners of such units and trying to contact them?  If so, how does one go about this?

I have a construction savvy investor who wants to purchase a distressed Multi-family, renovate, stabilize the project and then sell for a good return (20% +). Since there are very few in the market (in Florida), he asked me to look into purchasing a distressed motel and then converting to condo (possible combining 2-3 room into one condo (not condo-tel). My first instinct is not practical - location has to be right, cost of modifying low ceiling heights, zoning changes etc. Anyone have experience with this? Is this even feasible from a cost perspective?

Joel & Tony: Thanks for the great feedback. I have moved on to see if I can find the investor a true NNN lease with 10+ years, even though the CAP rate will be significantly lower, since it more aligns with his risk tolerance and investment objectives.

Thanks for all the feedback to date. Greatly appreciated. Joel to answer some of your questions:

Cap is 8.3, new loan - whatever investor can leverage, not 1031 Exchange. Lease is NN (owner responsible for roof/structure). There is Eight 5 year renewable options on the lease. I am trying to evaluate what options we have if this goes dark.

Investor really just wants something that is hands off. This may be more risk than he can chew, I will research others NNN with longer terms with at least 7% cap. If anyone has anything decent in Florida, I am all ears.

Has anyone had experience of purchasing NNN lease with a few years remaining with multiple renewal options and somehow getting agreement on securing the renewal or redrafting the lease as part of the due diligence period? I am looking at Walgreens with 3 years remaining on base term with a 8+ Cap rate. If this were feasible, it begs the question why a seller would not just do this before putting it on the market? Appreciate feedback from anyone that has had first hand experience with this.