All Forum Posts by: Ronald Rohde

I'd go with the contract. Are you near closing? past DD?

Did you have a list prior to going under contract? These are a business, with real estate component, not investment real estate. That size also sounds very small, so the list of buyers is probably even smaller.

Read all of @Henry Clark old posts. Then take action. MAKE MISTAKES EARLY, WHEN THEY  ARE SMALL

There are plenty of firms that do email blasts. What are you looking for? a buyer's rep?

Sure, we handle them.

Quote from @John McKee:

On an absolute you won't get any depreciation because you don't own the building.  The only thing you can write off is the Interest on the loan.  A lot of investors will 1031 into an absolute because they would like to trade up their existing equity.  Even if it doesn't cash flow as much initially they will own an asset that is worth more.  Other investors just need a place to park their cash and like the passive nature of it.  I own one of these but it did it with all cash.  The rent bumps are small so these assets tend to be traded once every 10 years to capitalize on the equity of it.   

I'm no CPA, but i don't think thats right. absolute net lease does have depreciation, maybe you mean ground lease has no depreciation. Land doesn't depreciate.
There are plenty of reasons to buy these assets, but the number of buyers has gone down, thats why you see the WAG and Sherwin Williams sitting for months now. 


If you're 1031 trading in, your basis may only be $500k, so deal cap rate is a 5, but your internal cap is 15...

whats the rest of the analysis? Whats your projected P&I? that will help us understand your cost of debt. 

He needs to lease a building first. Rezoning land to build for his first CRE space? Terrible business decision.

Please have a lawyer review and explain the lease as well. How many sq ft?

There's a lot to unpack in your post.

Retail/Industrial/office are all very different in terms of economic outlook, investment thesis and operations.

NNN does have reimbursement for operating expenses. The longer terms leases limit your downside, but also cap upside until a new tenant comes in or rent resets.

Fixing them up generally means improving vacant units, vacancy=risk.  Follow my Youtube channel for more details!

You'll need to narrow down your search before looking for representation. Be prepared to pay your exclusive broker fee yourself. Its all negotiated, nothing standard in commercial, but most buyers are not represented.