All Forum Posts by: Adam Craig

So far I have gone without a broker but do understand the importance of having one and what you mentioned just adds to that need. 

I know the bigger ones likely have quite a few relationships with bigger guys then me they feed deals to first so maybe call the younger guy on staff? I would be happy for a referral if you think you have someone in the Cleveland Market.

So far I have gone without a broker but do understand the importance of having one and what you mentioned just adds to that need. There are so many in the area - do you have any tips on which ones I might have best luck with?

I know the bigger ones likely have quite a few relationships with bigger guys then me they feed deals to first so maybe call the younger guy on staff?

 Great info!  The host of that podcast suggested small banks in the same city as the subject property if possible. Do you look for banks this localized or venture out ?  Also - what is your strategy for getting the bank to know and trust you? I wrote up a short elevator pitch speaking about how I have years of experiencing turning around distressed real estate. I planned on sending out a bunch of emails but would it be better to call and request to speak with the commercial lender?

Sometimes I feel like laying my experience and plans out on paper via email can rely info better then on the phone.

I am a long time residential investor transitioning to commercial real estate. I purchased 3 office/retail buildings in the past 2 years that were vacant or nearly vacant and turned them around with such good success, I may never buy a single family home again.

I finance the acquisition + rehab with my private lenders (I offer 10% interest) then refinance with my commercial lender which is a small bank.

I was recently a guest on a commercial real estate podcast and after hearing about my experience, the host said I need to get away from private money at 10% because I should be able to find a small bank to finance the acquisition even if vacant closer to 4%.

The 2 commercial bank lenders I often use did not seem interested until the building had some stability so I figured vacant buildings could not get bank financing off the rip.

The host of this podcast said he does it often I just need to find the right bank.

I plan to make a lot of phone calls this week to commercial lenders but are other investors getting bank financing in these situations?

Good insight thank you. After I get the buildings partially filled I tend to have more patience and wait for bigger tenants. But when they are 100% vacant, I end up catering more to the smaller applicants because I have so many.

I might plan on doing a mix of bigger and smaller and see how it goes. Thanks again

I am a 10 year residential real estate investor but I have limited experience with commercial real estate. I own 3 commercial properties all purchased in the last 3 years so I am still learning as I go

What is the opinion on renting 400-800 sq ft offices VS leasing the entire unit of 1500-2000 sq feet to one person?

When I purchase vacant buildings, I am very eager to get tenants after we rehab so I am usually willing to break up bigger spaces to accommodate multiple smaller tenants.

Should I be more patient on waiting for a bigger tenant or can you do well tailoring to small tenants? I have been offering roughly $1.00/sq/ft for larger spaces and $1.40/sq/ft for smaller spaces. So the cash flow when fully leased should still be good. The only negative I see is more tenants more work and more turnover.

Thoughts?

Thank you all! Very helpful

Right on! Is there a go to website for awnings or do you shop locally? I see many sites with similar products priced way different.

Still getting my feet wet on rehabbing commercial space.

I feel this building is very boring so I plan to add some awnings. So many choices I need some input.

I want to do something orange or copper in color and canopy style or metal. But should I just have one over each door or should multiple awnings span the entire length of the front of building?

 Another solid question I could use some thoughts on...

Always a fine line for me on knowing on how much to do before leasing. I am usually buying distressed office space that is in terrible shape and looking to rent quickly to get the building stabilized and pay private lenders back. So I go into it with a good budget to at least put down a floor and make it more appealing. 

Is this uncommon in commercial real estate?

The lower section is completely gutted and I was going to ffer it at 90 cents build to suit. The upper level was recently doctors offices and I decided to make "rent read" with flooring/paint and charge $1.25/sq ft.