All Forum Posts by: Ronald Rohde
Ronald Rohde has started 17 posts and replied 5108 times.
Post: The best site for NNN commercial properties
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Originally posted by @Joe Villeneuve:
Originally posted by @Jeff Kehl:
@Joe Villeneuve Block Buster, Toys R Us, Sears, Kmart, and Borders all were corporate guarantees with solid credit at one point in time. So I don't think it's fair to say just go for a corporate guarantee. A mom & pop with a beloved local business or a franchiser with just a few of a hot new concept are probably better bets and cheaper too.
@Kevin Noesner I'm on the mail list for the national brokers like Cushman & Wakefield, CBRE, JLL and Marcus & Millichap. I probably get 10-15 emails a day about NNN properties. You can go to each of their websites and see what they have and sign up for alerts.
Jeff. I never said the CG made it automatic. Read what @Joel Owens said. Did you notice what the ratings were of all of those corps before they started down the path to doom? Corp guarantees are very important. The rating/stability of the corp is what separates the good from the bad guarantees. NNN's still have to be analyzed, like any other REI.
And thats really my question, what do you look for in one set of financials vs another that helps you guide that decision? Do you have a policy of underwriting?
Post: Setting up LLC'S. How should wife be involved ?
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Nice chart! Can you make one for the OP? I think married people are pretty easy, Treat them as one entity. If she is involved in the business put her on the LLC, if not, don't.
Post: Pay for onsite manager
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Originally posted by @Jason D.:
I think he is ultimately targeting 42 units, but still same problem of scale.
Find a local PM that has offices nearby, I think that will be the only way to facilitate frequent visits.
Post: RE Agent is also Principal in Transaction - Use of Forms Texas
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Originally posted by @Daren H.:
I agree with @Greg H. I am a licensed, but purchase properties off market for my own portfolio. I use the TREC form and never had an issue. You have a lot of people out here talking about magic contracts and such. Just do your part by the letter of the contract, be ethical and honest, and you should be okay 99.9% of the time. I actually use the TREC contract as a positive to get people to sign without delay. I tell them it is not my handcrafted contract. I tell them it was written by lawyers on behalf of TREC to be equally fair to buyer and sellers. As a result, I never get push back on the contract and people will sign literally at the kitchen table without reading in detail.
that's really unfortunate since there are many elections and "check the box" that can drastically change the contract.
Post: The best site for NNN commercial properties
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Originally posted by @Joe Villeneuve:
Originally posted by @Ian Ippolito:
Kevin, sounds like you are a bit under the gun and have already initiated your exchange. You may want to check out 1031Crowdfunding.com. They have one of the larger lists of 1031 exchange properties, including a lot of NNN.
In my opinion one of the biggest risk of owning individual NNN properties, is the "go dark" risk. A single property going dark can have a huge negative effect on a smaller portfolio. That's why personally like to use NNN funds with thousands of properties so the few "go dark" properties have little effect when the others are fine. One I have invested in and like the best is Broadstone Net Lease. They have full real estate cycle experience, conservative leverage at around 40%, diversified thousands of properties across geography, and tax that they feel are recession resistant. They do have an upREIT feature where you exchange your NNN into the portfolio tax-free, they are a bit selective. Also, since you've already initiated your exchange, I'm not sure if that would be a dealbreaker for them or not, but you can always contact them and find out. Good luck.
Buy NNN with corporate guarantees then.
How do you analyze the strength of a corporate guarantee? Which entity do you require?
Post: I want to buy a condo and I need some advice on the processes
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Great comments above, a condo just adds another lawyer of DD that a SFR typically doesn't have. Understand you are buying into a relationship with the Board. Can be good, can be bad.
Post: Single Family House Rental Property While I am on Different State
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Wait until your personal life is firmly established before investing into an illiquid investment. That's not legal advice, but just free life advice (haha). Save more money for another year, it will never hurt you when your other situations are still up in the air.
Post: Where do I get contracts I need? NC
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Originally posted by @Nathan Gesner:
BP includes forms for anyone with a PRO account, which is just one of the many benefits of being a PRO member. But as @Karen Rittenhouse pointed out, nothing is better than a local attorney that is willing to defend the contract in court (if it ever comes to that).
Which for wholesaling, there are plenty of disputes over these "real estate" "commissions."
Post: Do you recommend Series LLC
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Originally posted by @Andrew Syrios:
From what I've heard (from a real estate attorney), the whole series LLC thing is probably not all its made out to be. I don't believe there's much case law on it as of now. But, at the very least, I don't think they would hurt you.
In what state? What is "much"? A series LLC is failed, would be very harmful, so I consider them valid in Texas and would not advise my clients otherwise.
Post: What is needed to qualify for a non-recourse loan for commercial?
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
All great answers, and even some of my strongest borrowers/properties don't get to non-recourse until 12 months of P&I before a burn off. If any rehab or improvements, forget about it until those are complete and cash flowing,