All Forum Posts by: Adam Craig

Thanks all - So when I go to refinance I have 3 commercial lenders I have worked with refinancing some of my single family portfolio that I plan to bring this deal to. I am a little sure what to expect

Purchase price 275K

Rehab - 20K with more to come in a round 2.

So when I go to refinance this how are they going to come up with market value. Will the rent coming in give more weight then comparable buildings? I went back a decade and there really is not much comparable to this building that sold so that might be tough. I just want to make sure I have enough to pay back lenders at 75-80% LTV. The building appraised for 350K in 1992 and 425K in 2003 which I understand have no meaning now.

But this downtown area is in about year 10 of a big growth with restaurants and shops so I hope with a fully leased building with a recent remodel I can get in the 350K range which is what I need to pay everyone back.

We are closing on a 7 unit office building next week. The building is completely vacant so I am purchasing it with private investors funds. I'm going to do about a $20,000 rehab then get at least up and try to refinance it quickly.

I'm going to use one of the spaces for my new office on my real estate business. I have a second business that I am contemplating moving into one of the lower units. My thinking is if I can get two tenants immediately (which would be both my businesses) then I am well on my way to getting it refinanced because I only have to fill a few more units before I bring it to the bank.

the question is how much should I charge myself for rent? I initially thought well below market rents but now that I am wanting the numbers to look good for the banks should I just charge market rent since the payment will be going to my business?

I am purchasing an office building near a trendy downtown area in my home town. The address is 38021 Euclid Ave Willoughby if you want to take a look - its an old century home that used to house a medium sized law firm. I am going to use a small section of it for my office and plan to rent the other 3-4 units.

I am a real estate investor that flips/rents single family. I have a portfolio of 32 rentals that I have in house management for. We do a great job on single family rental listings. My wife is my agent and another girl is our part time property manager, we have professional photos, we syndicate to all the listing websites. So we tend to rent our units quick and at a premium.

Because of our success, I initially planned on leasing the empty office units myself but because I am just starting to get into commercial I am thinking of hiring out the leasing at least initially to get a batter idea on market rents and different lease structures in the commercial space.

Thoughts on this?

I dont really need to hear much else :)   That summed it up enough for me.

Now that I can really get back to work since I will be out of my home office I am going to start building! Thanks

I am an investor that buys/rents/flips/residential/commercial. I have done 50+ rehabs and hold 30+ rentals so I am at the point where my near future goals are raising more private capital and investing in apartments/commercial.

I am finally moving my home office (due to 2 young children) into a new commercial office building I am purchasing and leasing out the other space. 

Aside from putting my name on the sign, is it worth the time and effort to build a real estate brand? Everything from creating a website, instagram/social media posts, youtube videos ect...

I am certainty not the look at me type on social media. I think its cool when successful wealthy guys go under the radar. The only reason I am considering it is because I have a lot of information and knowledge to create content BUT WOULD IT BENEFIT ME other then feeding an ego? Would it help me find investors or potentially earn income if videos and posts get enough followers?

Is having your name and business as "out there" as possible good? Anyone with experience or not please pitch in.

 Since I dont own the property I dont have all this information decided. Between bigger pockets and a commercial agent I was going to figure all that out.

I was planning on having them pay for phone and internet unless someone recommends otherwise. 

 This leads me to another question I planned on asking. The electric is divided into 4 meters but the gas is not. How will I go about charging for gas. Could I just take the bill and use square footage to divide it up? Same goes with water...

 Good tips thank you! I might not have the best location in town but I would say its as desirable location as anywhere in Willoughby. This building is steps away from downtown Willoughby which is the area of Willoughby everyone wants to be due to the emergence of restaurants/coffee shops - it has become THE trendy downtown area in this 4-5 city area.

I will reach out to some commercial agents and see what they have to say. 

We are closing on an office building in about 40 days. Its a 5000 sq ft century home converted into 5-6 separate office spaces with me occupying one for my business. I plan on having some commercial agents through for a better understanding but what dictates when to apply NNN/Gross/Hybrid lease?

When I initially ran my numbers I didn't even know what a NNN lease was so but it sounds interesting to think I can get some taxes and insurance paid for.

I certainly do not want to modernize it. I want to keep the historic charm but it needs painted anyway so just want to see if there were any other ideas out there but you're right I don't mind the current color.