All Forum Posts by: Ronald Rohde

3 years is pretty short commercial term. Single tenant?

Do you have the bank loan in writing? need a Commitment Letter, not just an LOI.

EDIT: do you have an LLC or the entity formed for the purchase? Operating Agreement between yourself and partners?

Are you looking in Dallas? land prices are pretty darn high right now, everybody is pricing for luxury MF...

Good cash flow business, but very hard to exit. NJ is a CON state, I have done work in that state for stand alone ALF.

Hi Hemal, do you already own the land for the parking? is it fenced and secure? a commercial broker would be able to list a parking lot/"parking available"

I assume you are taking this property off the lender's hands. Id be suspicious of such a "free" deal. Run your numbers, but you can probably get more from the lender. Are you going to have any equity left if its only worth $80k?

So for a $2m project, you are putting in 1% of equity plus personal guarantee on the loan? 10% down seems too low for CRE LTV.

The answer also lies in what your expected profit is. What will the completed value be? What is the minimum return your investors would still invest in? Figure that out, then the balance is yours.

Texas has no state income tax, higher property tax, proximity and supply of construction workers, year round construction, booming economy. Lots of things make Texas different and it all has some impact on your RE investment strategy.

Look into Texas SFR as well if you want passive investment with appreciation.

As an Airbnb host, the glaring factor I haven't seen you mention is your time. Or whoever is going to be answering emails, texts and phone calls. check in, directions, repairs, etc. For Dallas, we're making 1-2k above long term tenants, but I keep my time below 4-6 hours a month. That makes it worth the extra hassle.