All Forum Posts by: Tyler Derickson

Good stuff. Should be a great turn out!

For the Fort Wayne, IN area, I would suggest Kathy Selig with Dreamkeeper Realty. She is an experienced realtor with many years of experience dealing mainly with investors, her husband and son are both local contractors and she is very involved with her client's projects throughout the rehab and even lease-up (she also started a property management business which is a great one stop shop), she also has a network of contractors and bankers with whom she keeps busy with her investor clients. 

Welcome to the BP community @Chris Maudlin! I live here in Fort Wayne, IN, so I would be curious to know how you picked Fort Wayne out of all the other cities in the nation. Feel free to send me a PM and I can try to answer any questions you may have on the area or any questions in general as I always enjoy expanding my knowledge by talking to other investors.

Have any of you guys/gals used the deal analyzer for non-MF Commercial deals? I'm looking for a deal analyzer in which I can adjust deals with tenants that are triple net, modified or full service, as I typically buy properties with several different types of tenants and leases. Also, can you customize his excel files or are they password protected?

@Jeff Kehl I understand supplying all the information when applying for the loan as it does make sense. The bank is wanting tax returns for all of my other unrelated businesses, personal returns and the entity borrowing the money during the life of the loan (after the loan money has been dispersed, sending them my 2018, 2019, 2020, etc tax returns within 30 days of filing during the life of the loan). So they don't want predicted future returns, but in the future provide those returns as I file them with the IRS.

@Jeff Licciardi I wouldn't fuss about the P&L and tax returns of the building entity. I'm trying to guess why they want personal tax returns and unrelated business tax returns (ie. my non-real estate businesses in separate entities with separate partners).

Thanks to all others for the feedback. I'm going to try to negotiate with the bank on the non-borrowing entities, as that is my biggest fuss. 

I'm in the process of negotiating through a loan and the lender is requesting us to provide all FUTURE tax returns for the entity purchasing the building, all personal returns for investors associated with the building holding over 10% equity and any other tax returns for businesses unrelated to the entity borrowing the money within 30 days of filing tax returns. The bank states it's for the purpose of proving the quality of the loan to regulating officials for the duration of the loan (aka the next 20 years), but how does an unrelated entity prove the quality of a loan? 

I feel it is a huge hassle to have to send all tax returns for the life of the loan from all members of the LLC or fear breach of contract. After a loan has been dispersed and the property is purchased, isn't the quality of the loan solely based at that point on whether it's paid on time or not?

   I understand when applying for a commercial loan the bank wants personal tax returns, business returns, etc., but I have never seen a bank ask for those items for the lifetime of the loan. Has anyone else had experience with banks asking for information on an annual basis? If so, how were you able to negotiate around those items?

Priya, send me a PM and I can direct you to some agents I have used in the past in the fort Wayne area with good success.

What is the best way to locate a national chain tenant rep broker?

When I talk with local brokers, they typically only know of the local/regional tenants looking for space rather than any national tenants. It seems most of the leasing brokers I've worked with sit passively waiting for someone to lease the space rather than actively seeking new tenants or national chains looking to expand. Is there any such database of national/regional tenants and their leasing/broker contact information? 

I don't see it as a "supply & demand" issue in RE. It's much more likely to be a default issue. According to CNBC as of 8/24/17, 78% of Americans live paycheck to paycheck, meaning most Americans can't afford their car payments, student loans, credit cards, or house mortgages if they would lose their job or have any meaningful increase in inflation of non-fixed rate items to include ARMs, credit cards, and regular items you buy from retail stores. With unemployment at multi-decade lows, potential trade wars and student loan defaults, it could cause a domino effect.

The trouble is a lot of investments are calculated based on low interest rates, 5-10% vacancies, and increasing rental prices. With higher LTVs, any change in either one one could result in losing money. People act irrationally when prices drop quickly, especially stocks! 

@Jeffrey Walker I know this post is now a year old.

 Have you had any luck with finding a national tenant to sign a lease from you?