All Forum Posts by: Adam M.

@Wayne Bolen Ouch, that's some expensive education. You make your money at the buy...I've never lost a penny on a RE deal. Tread lightly, be careful and make sure your ARV and rehab costs are conservative. Never force a deal and justify doing it. Good luck!

@Cody Evans First of all you have to be someone able to build rapport almost instantly and need a good elevator pitch, but it has to be 100% natural. Very simple and to the point. Don't dress or talk like a salesman. Ask questions and just let them talk and you listen. 

Ring their doorbell and step back down to the bottom of the steps, it makes them feel way more comfortable when they open the door. 

Good luck!

@Arianne L. Great story, thanks for sharing! Your rehab and wholesaling business is interesting in this market. I'm surprised you're finding that many deals. Are you following the 70% rule on your rehabs?

Also, the 24 unit deal is bringing an ~8% cap rate. How much did you factor in for repairs, maintenance, and CAPEX? I've been looking at deals like this also.

Real estate is definitely local. During the downturn between 2009-2012, our market was pretty much flat. 

@Hai Loc I'm trying to see the build out plans to determine plan B. Will the company be around in 20 years??? Great question, my research on them is they've been up and down over the last 5 years and just recently finally posted a profit. If they could last the entire 10 years on the current lease with no issues, I'll be sitting pretty. I would have a lot of equity and would still cash flow positive even at $17/ft if I had to drop to find a tenant. My target price is still $2.5M

@Ryan Keenan Cash for keys and move on...I know it's brutal, but don't let bad tenants ruin you as an investor. Been there, done that. Good Luck!

@Josh Lyons Nope. I've always driven a beater wagon to my properties. <$2000

@Hai Loc The building will be brand new. It's a built to suit and the developer has this tenant locked in. I would be financing the deal. I did dig into the land and it can have additional buildings on the property and also can be subdivided. 

Thanks for your feedback. 

@Jessica Zolotorofe Yes, the 8% cap rate is pretty good for the area. I don't have a lot of commercial experience, but the 10 year lease is very attractive. However, I feel like I'd be paying a premium for that lease in place at $312/sf. I'm looking into if I can build additional units on the property down the road. 

I'm trying to get to ~$2.5M for a 9.6% cap rate. If the company stays solid, I see it being fairly low risk for the next 10 years. The company has been public for 15+ years and is in the natural gas space. 

I'm looking at an off market commercial deal. It's a combination of office and industrial space. Leased by a solid, publicly traded company for the next 10 years. Would love to hear some feedback. Thanks.

9,600 sq. ft. on 4 acres
NNN, 10 yr. lease
$240,000 NOI/yr.
Asking price is $3,000,000