All Forum Posts by: Douglas Dowell

Hello Vincent....I am far from an expert on the SBA 504 loan but I think your loan might be a good fit.   I would reach out to Chris Hurn with Fountainhead Commercial Capital. He has been in the 504 space along time.

I understand that you can get into the property with 10% down.

"SBA's regulations on leasing require that the small business occupy at least 51% of the rentable property if the 504 project is for an existing building and at least 60% of the rentable property (with the intent to move into at least an additional 20%) if the 504 project is new construction.

• For-profit, non-publicly traded businesses
• Tangible business net worth (including affiliates) not to exceed $15 million
• Average net income of the business not to exceed $5 million over the previous two years
• Ownership must generally be comprised of 51% U.S. citizens or Legal Permanent Residents (some exceptions apply)Examples of Property Types Fountainhead Finances:
• Medical offices or medical facilities (such as labs and clinics)
• Office buildings (including office condos)
• Warehouses (and other industrial properties)
• Day care facilities (for children or adults)
• Free-standing restaurants
• Limited-service, flagged hotels (some unflagged destination hotels will be considered)
• Auto repair shops
• Assisted-living facilities
• Call to ask about many other property types that are eligible

• Non-profits (except sheltered workshops)
• Passive holders of real estate and/or personal property
• Lending institutions (mortgage brokers and correspondent lenders are eligible)
• Life insurance companies (franchised agents are eligible)
• Businesses located in a foreign country
• Businesses selling products or services through a pyramid plan
• Gambling concerns
• Businesses which restrict patronage
• Government owned entities (excluding Native American tribes)
• Consumer and marketing cooperatives (producer cooperatives are eligible)
• Businesses engaged in loan packaging
• Businesses that have previously defaulted on a Federal loan
• Businesses engaged in political or lobbying activities

• Working capital
• Inventory
• Rolling stock
• Business “good will” or “blue sky”

Propsectnow is pretty good depending on the jurisdiction.

I recommend reading Tony Robbins book on Money Mastering the Game.  Mutual Funds are only good for the money managers.

You cannot go wrong with Alpha Architect and Professor Gray and his team have taken value investing to the next level.

I highly recommend networking with Urban Land Institute and/or NAIOP.   

@Tyrone I am in the camp that believes that an LLC is an unnecessary layer of complication until you go commercial, have 5 plus properties or like your case have an outside party in your deals.

Discuss dissolution thoroughly...its all shiny happy people in the beginning but often ends very differently.  With this in mind I think legal counsel is a wise idea.

Thanks for the mention @Brian Gibbons.   In a former life I indeed wore the attorney hat but alas Real Estate is all I do these days.

To the original question....it can vary widely from $100 or so per hour to $500 depending on the number of floors your attorney is above the ground.

Ask around your REIA and I am sure someone can give you a solid referral. I also really like AVVO.com for attorney searches by practice area.

I doubt a retainer really serves any function here unless you don't want an ex-wife to use the same lawyer lol.

@Karen Margrave  is a very experienced developer and might have some insight on how to proceed as well.

I think with those facts I could see doing without the appraisal if you feel you have done enough supply and demand analysis. 

I would check out Real Estate Development handbook by Zuckerman....it will fill in some gaps.

Have you considered getting a MAI to do a commercial highest and best use?   $3k ish to get an appraisal of your proposed target might be a way to get some more information to get an idea on what to pay and what to execute.

I think you might want a broker who will list the property on the back end involved AFTER you go to contract but that is just what I would do.

I believe joint ventures with experienced development partners are a great way to minimize risk as well.

I really like Real Estate Development Workbook and Manuel by Zuckerman 

It provides the best framework for driving home the point that it takes a village to do development deals.

I have found any book the Urban Land Institute to be worth the time and expense.