All Forum Posts by: Priyanshu Adathakkar

There are things that excite me and frighten me.

Things that frighten me:

Retail: How much of the property is occupied by the restaurant? Who are the other tenants?

Small Town: What is the economy based on? Single employer, tourism, something else?

Things that excite me:

Restaurant tenant: Is this their first venture (start-up) or is it an established chain or franchise? If it is a franchise check with the local SBA office to see how they view the franchise.

Other due diligence:

Examine all leases, look for lease terms (length of leases) and any escape clauses.

Good luck!

You need to worry about insurance, mortgage rates and terms (different for primary residence and investment properties) These cannot be switched at will. You need a plan and your ducks in a row.

Talk to a large developer and park the money as a 1031 purchase in one of his/her lands that they are holding for future development. This can be liquidated when your seller finds a suitable property to buy.

I am very excited about our 2 new crowd flipping projects. The first one is in Olde Town East which is a 3Plex new build in this Central Ohio historic district and the other one is in Delaware, OH which is a fix and flip. Both these projects are an awesome opportunity for new (wannabe) flippers with little or no experience or low capital to get into the business and I am very happy to be able to provide people this opportunity. 

I'll keep you informed about the progress of these two projects here.

To be successful in commercial investing and management you need some level of knowledge, experience, and savvy if you lack either or all get help. 

@Vincent Migliorino just one comment on saving 6% as a licensed agent. Remember, if you want to sell your properties fast you need to cooperate with fellow agents which means paying them 3% also remember that as an agent you would want to keep your business as an agent and your business as an investor separate that would involve paying yourself a commission on the sale  or purchase of your own properties. There is also this small issue of your brokerage (you'll need one to practice) which will require a percentage of your commission.

These type of leases have periodic increases and are absolute net leases (tenant is responsible for everything) and all the landlord does is look for the check in his/her mailbox every month. As long as they do not require any restrictions put on the deed, this is a good deal. Absolute net leases normally net 6% CAP, here obviously you are getting more.

You have not identified any properties yet and you are talking of 1031 exchange?

It depends on the lease terms, on a 3 year term carpet, paint and good ceiling tiles are standard LL paid TI. On a 5 year term you might do a little extra. Cost of rest of the work can be amortized in the rent.

Ask for 3 years tax returns for the business as well as personal returns. Also ask that the lease be signed personally and not as a corporation.  Some landlords also ask the principal also sign a personal guarantee especially if it is a startup.