Commercial Properties - New to the arena

[Paul Rosenbeck]

Hi all! I am new to the BiggerPockets for him and I need some input on my next venture. I recently completed a very successful and profitable renovation in the greater Hartford area. One of my private investors out of upstate New York is now interested in purchasing an apartment building or something of this magnitude out of state. I have been looking at and researching a very popular resort town out west which is in dire need of employee housing because most of what’s out there is short term rentals, VRBO, etc. etc. Fortunately he is a valuation analyst for a large company so he works in mergers and acquisition‘s all day and is very in tune with the financial end of things and I have experience in the operational side of the business just not on this scale. He drew up a very comprehensive, value-based business model and we have done most of our research for the sales deck. I have reached out through my network and am confident that I have found enough investors, both accredited and “sophisticated” to fund the venture. I know that there is a lot more involved with this whole process and I have been compiling a list of things I need to do. When I feel as though I have everything covered, my plan was to prioritize and get to work. Here’s the issue...A lot of the ins and outs are new to me because I’ve been working mostly in single family residential with a short term hold and have yet to venture into the longer term buy, rent, reno, refi and exit arena...it’s a different animal all together. I’m positive that I missing a ton of stuff! I was wondering if there was anybody here that may have been involved with something like this in the past and may be able to give me some pointers as to what the next steps might be? Find an attorney, broker, locate property, (architect, engineer if we decide building from the ground up is the way to go). Really anything anyone can give me would be much appreciated, I look forward to hearing what you have to say. Thank you in advance!

[Account Closed]

1. What state are you looking to purchase in?

2. If you feel your funding is solid and have an idea for what you want to buy, then your next step is making friends with the Commercial Brokers in the areas you're interested in. A good broker with have connections to architects, contractors, (In Texas I legally cannot suggest an attorney) and the like.

Don't use residential agents who "dabble" it'll just waste your time (or worse). Find an agent who specializes in commercial sales.