All Forum Posts by: Greg Dickerson

This is an easy one @Mauricio Rauld can help you.

To answer your question specifically yes you could potentially find private investors to fund this deal for you and all the deals you want to do regardless of your credit history. The investors will be relying on you and your expertise as well as the fundamentals of the deal. Become an expert in the space and the market with these types of assets first. Understand what a great deal is. It's not the Gross rent that's important it's the NOI and potential NOI that creates the value. Of course you have to increase gross rents but remember it's not how much you make but how much you keep that matters.

Yes I developed and owned many STR's on the Outer Banks of North Carolina from 1997-2011. I had several STR's when the 2009 GFC hit. We only experienced a 10% dip in rents that year and continued to experience positive growth of around 10% in rents YOY after. People still took their vacations even when they lost jobs they just spent less while they were there and in some cases traded down in accomodations. The most expensive properties and restaurants suffered the most (which I happened to own both) but again only to the tune of about 10%. The STR market has changed a lot since then and so have the abundance of new properties and accommodations. It is going to take a major event to put a big enough dent in rents and occupancies given the strength of the consumer right now. Some properties in some areas will take a hit but historic iconic vacation destinations like the beaches and mountains will always do well in almost any economic environment.

 Thank you for the kind words. Glad to hear the course was helpful!

 Thank you for the kind words. Glad to hear the course has helped you!

This particular strategy is called "entitlement flip". I have lot's of resources on this in my course and Real Estate Development playlist on my Youtube channel as well. 

First step is to educate yourself on the business and the market. You really do not want to start courting investors until you know the business intimately and until you know the numbers you do not know the business ie. values, CAP rates, Comps, Occupancies, Prevailing Rents, Rent growth, typical CapEx, OpEx, prop taxes, financing, SEC regs, Investor requirements etc.

Best place to start is to study the OM of the types of properties you would like to get into then connect with the brokers and ask good informed questions about the property. You can also discuss properties for sale with the PM you plan to use and get up to speed on expenses and operating issues you need to be aware of.

Bottom line you ned to become an expert. Once you can recite all of this for any property you are evaluating in any market anywhere in the world you want to invest you are ready to start raising capital from investors to start buying deals. Otherwise you could partner with an experienced operator and focus on raising capital.

 If you do not have a sufficient downpayment, net worth and reverses it can be difficult to get financing. The next option would be owner financing. Many commercial property owners often prefer financing the deal vs cashing out. I have used this strategy many times on all different types of assets and several times the owners would not sell otherwise.

Commercial comes in a lot of different shapes and sizes depending on what you're looking for. You mentioned "passive investment" so are you looking to invest passively with someone else and they do everything or are you wanting to purchase and operate the property yourself. In any event I have tons of info on my Youtube channel on all types and classes of real estate investing and development. You can also seek out local meetups and investment clubs that focus on commercial property as there are several in San Diego.  

Have you fixed the issue? In any event the best bet is to show up in person to discuss if you are not getting any response. If for some reason you can not connect with them in person ask for the director of planning and explain the situation.