All Forum Posts by: Ronald Rohde
Ronald Rohde has started 17 posts and replied 5108 times.
Post: NNN LEASES -INSURANCE RESPONSIBILITY QUESTIONS
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Quote from @Cindy Zhang:
Hello!
Wondering if I can get clarity on the following insurance questions for commercial property with NNN leases.
1) Tenant - must purchase commercial general liability insurance for building naming the landlord as the additional insurer.
2) landlord - has to have property insurance as well as commercial general liability insurance as well?
Does the tenant pay for all of the above then for NNN or is that negotiated and written clearly on the lease if tenant pays for what premiums?
Maybe some landlords out there can help?
This is a grey area where I have asked around and can't seem to get a straight answer.
Thank you!
Are you asking as a tenant or landlord? If LL, you'll often have an overlay of requirements on insurance from your lender.
Post: Just bought 93k SF in downtown Fayetteville, NC. What to do!?
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Quote from @Mika M.:
Quote from @Ronald Rohde:
How much gain are we talking? $1 million or $500k?
Id take a million.
Is that the right question to ask though? Would think the right question is - will it be worth $6M+ once we sign a tenant or two and bring it to even 30-40% stabilized.
Sure, but $4-6m is not worth the risk in time/cap rates, for a $1m gain in 60 days. You're in this business to make money, not take unnecessary risks.
Post: when looking for self storages
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Quote from @Henry Clark:
What range of investment are you looking at?
Example: If you have $300,000 at 25% down on a conventional loan this is a $1,200,000 deal. Do that and it will narrow down your search and discussion. If you have no background or similar experience it will be harder to get a commercial loan.
I've heard a rough rule of thumb that first or second loans will not exceed your paper net worth regardless of DSCR.
Post: Investing in MHPs
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Good asset class, are you in city limits or outside?
Post: Where to find financing for single tenant NNN building in near future
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Where do you keep your money? Ask there first.
Post: NNN Gas station property
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
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whats the lease look like?
Post: Just bought 93k SF in downtown Fayetteville, NC. What to do!?
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
How much gain are we talking? $1 million or $500k?
Id take a million.
Post: Opportunity to buy Commercial Prop for my business
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Definitely try to buy with seller financing. As long as you compare lease costs vs ownership return on equity, it sounds like you already have a good formula. I like the exit vision as well.
Post: Office/flex space purchase leaseback opportunity
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Biggest things are debt terms and lease. What is market rate for rent? How easily can you re-tenant the building if they vacate?
5 year NNN lease, can have building obligations as that's normal. but understand the condition.
Post: when looking for self storages
#3 Commercial Real Estate Investing ContributorPosted - Attorney
- Dallas, TX
- Posts 5,329
- Votes 2,254
Why build? Acquire an existing facility first. See if you even like the asset class.