All Forum Posts by: Rich Stark

I currently own a commercial business that rents salon suites. The model is great and cash flow is better than SFR or Multi family. I just opened my second location with a business partner and I am looking for some help in putting together a syndication to open more locations.

As I already have success with my first location (the second is filling up), I have experience and I am qualified to get more locations off the ground, but I am looking at outside investors so I can open more locations faster.  

This market is growing but still in its infancy and there is a lot of opportunity especially with small salon style businesses looking to move into private spaces which we provide.  

If you can help with putting together a syndication deal or you have investors looking for better ROI, please PM me.

In my experience, it's all about the numbers.  Starting with purchase price, then you decide how much you're putting down to determine a loan amount.  Figure out all of the expenses (loan amount, taxes, HOAs, repairs, property management) and then rent rates.  Once it's all down, you can see if you will make any cashflow.  If your cashflow is so low that one repair will wipe you out, the deal probably doesn't work.  Just "breaking even" won't get you much especially if a major repair comes up.  

Excellent.  Thanks for the insight and congrats!

How did you work this with only 5% down?