All Forum Posts by: AP Horvath

When you are looking at a Mom & Pop deal like self-storage or self-service carwash -- and the seller absolutely refuses to provide financial statements or tax returns -- because they have been running this as a cash business and avoiding taxes ---- how do you determine the property's true CF and value? 

Obv there is risk and it would be easy to say -- just move on etc etc 

But there might be gold in them there hills -- how to figure this out? 

We are on the verge of getting our site development permit for 13k SF of office-warehouse. 

However, we may re-do our site plan *right before we cross the finish line* -- and re-design for more intensive parking. 

Not sure if we should get permit and then revisit -- or redesign now. 

What's the rule on naming a forthcoming retail asset with a name similar to the existing residential subdivision next to it?

Say subdiv name is: Sunny Lakes

Can a non-related developer (namely, me) name their project: Sunny Lakes Biz Park?

@Henry Clark -- keep on keepin' on Henry! Merry Christmas and Happy New Year too! 

@Jay Hinrichs -- actually, once the water line is relocated -- that is exactly what will happen -- it will be cut and then a new line installed in the right spot. Obv if I did that without proper permissions, it wouldn't end well for me. 

Update on this -- my attorney is talking to the city attorney. We feel strongly that the current situation does not meet the five necessary elements to be deemed a prescriptive easement. 

While I have no appetite for a lawsuit --- neither does the city --- we are attempting to meet in the middle wrt cost of relocation -- which would be less expensive and less stressful for both parties. 

Question for any of your who have subdivided, developed and sold lots --- 

We are looking to rezone and subdivide a 10 acre property into multiple commercial lots. We will be adding a throat road into a cul de sac, addressing drainage, and stubbing out utilties to each lot. 

We could sell them as fee simple lots, however, this would incur greater infrastructure costs (public road size requirements vs private road) than if we created a condo scheme -- wherein we would sell units (equivalent to a lot). Obviously, the condo association would have to collect monies for ongoing maintannce of the road and drainage.

On the sales and marketing side, do fee simple lots enjoy a premium to condo "lots"? Or asked otherwise, do condo "lots" suffer a discount to the same size fee simple? 




  

@Marco Rodriguez

For semi-truck parking, how close to the trucker's home does the parking facility have to be? How is best way to find a cluster of truckers?  

It used to be that self-storage was difficult to finance -- now it looks like many local commercial banks are happy to do so. The upside is that it is easier to get a self-storage deal done -- the downside is, it is easier for the average Joe to get a self-storage deal done too. 

And when money is cheap and a lot of average Joes are jumping in the same asset class -- cap rates plummet. That's obv good if own assets in that class -- but makes the game tougher if you're trying to get in and actively acquiring properties. 

So the question is:

What are the current CRE asset types that are hard to finance? (But will become easier over time.)

@Bill B. --- on the face of it, that seems to be the case. 

However, my RE attorney says that they likely do NOT meet the standard for adverse posession. If I recall correctly, there are a number of elements that all have to be met. 

But it looks like, short of legal action, even if I am in the right (ie the water line does not fall under a prescriptive easement), I don't have a lot of leverage. :(