All Forum Posts by: Tod R.

What is the deal with all these flipping shows? I don't normally watch them but have caught a couple (think it was Armando). I don't remember much emphasis on market/repair analysis compared to the drama within the team. They seem to really gloss over numbers.

Mark Updegraff this is great news for you. Developing is definitely a creative and challenge endeavor. I'm looking forward to your updates!

Tod

Aah yes...Ryan Moseley. This question has been raised before:

http://www.biggerpockets.com/blogs/1833/blog_posts/20476-just-say-no-to-property-management

http://www.biggerpockets.com/forums/52/topics/59621-property-managers-why-do-they-always-overpromise-and-underdeliver-

http://www.biggerpockets.com/forums/12/topics/70563-why-bp-so-negative-on-property-management

Let the games begin!!!!

Hey Andrew Jones. How strong is the leasing market? I would take this into consideration as well before evicting.

For commercial acquisitions, you should have a property condition inspection/report. This will give you an assessment of the remaining useful life of the major components of improvements and recommend a certain level of reserve. Usually the lender will base their required initial and monthly capital reserve escrow payments off of this report.

Location would have me interestd.

I would want to make sure you completely understand the leases in place, including any and all remaining obligations and rights of tenant and landlord through the termination of the lease.

I agree with Don Konipol that you should make sure you understand your market. What are the potential replacements if your current tenants left.

Joel Owens also makes good points about property condition, and potential redevelopment.

Just make sure you've studied the downside and have a contingency plan for any potential challenge.

This is a good strategy for families as well. It works around the school year.

In our cash flow analysis we will include the components of NOI (rent and other income, operatinge expenses, taxes & insurance) with a subtotal. Then deduct expected capital expenditures with a subtotal to get to cash flow before debt service. Then we deduct debt service to get to cash flow.

We go through the exercise of analyzing major components of the improvements to determine estimated remaining life.

This is a common theme among successful people. I've also heard it referred to your "core skill set".

[quote=J Now, all that said, there are some good turn-key companies out there -- just make sure you do your due diligence. In terms of Memphis (since you mentioned it), while I've never used their services, Chris Clothier who runs Memphis Invest (and is a well-respected BP contributor) is a great guy, and everyone I've spoken with who has done business with him has only had great things to say. So, there are definitely good companies out there, and it appears Memphis may be one of the places you can find them.

I was thinking of Chris as well in my post. I don't specifically recall others off hand.