All Forum Posts by: Prisha Acquesta

If it helps. I am in GA

Hey All,

Can y'all guide me with what I need to do to become a real estate agent and get access to MLS ?

I own a few rental properties and would like to transition fully to RE.

Thanks,

Prisha

Hi All,

Are there lenders that offer loans for a business only purpose (i.e a business where you do not own land, building or any other equipment property). If so, can you please recommend a few names and educate me on criteria for the same ?

Thanks,

Prisha

Hi All,

I am new to commercial RE and have been involved in residential for a while. I am trying to understand the pros and cons of commercial vs residential. I am evaluating a few speciality properties that have absolute net leases of 15 yrs and that have a cap rate of 6% or higher.

As you can probably guess from my questions, I don't yet have a plan for these. My goal is to build wealth and create an income producing property over the long haul.

Here are some of the questions that I am wondering about:

1) What can I do with a speciality property after the 15 yr lease ?

2) Incase of an economic recession , do prices of commercial RE drastically reduce?

3) How much loan do banks offer on these and if you have any recommendations for lenders

4) What are some of the  things I should consider when evaluating a commercial property.

Thank you,

Prisha

Thanks for your inputs, Joel and Sam.

high volume**

Thanks, Ken. Its an extremely high gas station (260-270k gallons per month) with 15 to 18 cents profit per gallon. 

In addition , there is a tiny (the size of the old phone booths) that sells less than 10 items.

If the seller has multiple businesses on his tax return , is there a way to analyze numbers of a single one?

Thanks, Damon , Vinay and Brian. Here are some answers :

1) The current owner is 70 plus and retiring , hence he is selling. The business is profitable and he has been running it for 15+ years. The seller had previous offers of 500k plus (that's what the broker informed) and refused to sell at that price. Seller does not seem highly motivated to sell.

2) Per the current owner, business is pretty much on auto pilot and he just provides oversight (less than 5 hrs per week) . From what I have seen so far, that seems to be the case since the overall operation is pretty small. So far, the documents I have reviewed seem to show that business is pretty organized.

3) My current job is pretty bad and pretty much sucks the life out of my life , I am earning well and have solid benefits but don't like my workplace and lifestyle. My plan is to continue for a while longer and pay off the seller before I can transition full time to this business. This opportunity seems to be organized enough to not require me to work fulltime , give me the needed flexibility and motivation to grow.

4) In terms of hidden expenses, so far I have not uncovered anything. However, this is a good point and I will try to find out more about this. The net of 150K is after all expenses are deducted. Last year net was over 150k , but I am being conservative in my analysis and hence using 150k as a good number. I will also evaluate impact of increase in COGS or decrease in Sales - Vinay - You have a great point here. Since the total number of items being sold is less than 10, I need to evaluate this point. I also plan to review P&L for last 3 years to ensure that numbers are consistent.

5) I am new to the field but have other family members who are running similar (bigger) business and are available for operational guidance. In my conversations with them, they have encouraged me to go ahead. They agree that sales price is high for goodwill only but still think its an ok deal as the market is hot in this particular geographic region.

6) I strongly think that 560k is pretty high for goodwill only , the seller has excellent location and I have been unable to find another store that offers the balance of time commitment and return. I will be meeting the seller soon and intend to discuss support during and after transition. 

Please keep your suggestions, critiques and recommendations coming.. these are invaluable and giving me ideas on all items I need to analyze before I sign up for this opportunity.

Thank you,

Prisha

Hi All,

I am a newbie to business (been a RE investor for a while) and need advice from folks on this forum.

I am currently in a dead end but decent paying job that I desperately wish to leave.

I am evaluating a business opportunity where the seller is willing to sell his business (no assets, no real estate, only opportunity cost) for $560K. He is willing to finance 300K over a term of 5 years. I will be paying the remaining 260K as down payment. The business currently nets 150-160K (after all expenses) annually and is estimated to do the same over the next years. The business does NOT really have potential to make significantly more than what it is currently makes.

I am looking for advice from existing business owners on whether or not this is a good opportunity. My dilemmna especially comes from the fact that per current calculation , it will take me 3-4 years to break even (i.e to get my initial investment back and pay off the seller’s loan).

Greatly appreciate any insights , suggestions and guidance you all can share.

Thanks,

Prisha

I agree, Prenup is the way to go!