All Forum Posts by: Brandon Hicks

Keep in mind that at some point you'll be forced to use commercial/portfolio lenders with 15-20 year amortizations. You'll have a ton of debt paid off if you pick up a bunch of properties early on. I'm at 14 parcels for a total of 28 units and if they were free and clear I'd be around $9-10k a month cash flow.

Make them produce documentation. I have a kid who is recovered from Autism. While I've heard of ASD kids having service dogs I've never heard of kids with ADD/ADHD having them.

All are man-made disorders by the way. Autism isn't mental its normally symptoms of underlying gut issues and/or other problems which is why it's curable.

The closest thing Ive read to that is probably "Tales of a Whitetrash Landlord" by Dan Brouilette and "Confessions of a Real Estate Entrepreneur" by James Randel. Both really good reads. Dan's book about horror stories from residential landlording with tons of good advice learned the hard way. James's book is more on larger commercial deals...some gone right and some gone wrong.

I'm in Indiana and my course of action would be to file a 10 day pay or quit and then contact the courts for the next step. Quite often they move during the 10 day period. I'm not sure what county your in but in Noble County I'd get a court date for immediate possession within 2 weeks of the 10th day. Whether he showed up for court or not non-payment will get him 14 days to vacate. Non-payment is pretty cut and dry with our judge. Most of the time the tenants don't even show. If they're still there at the deadline I can call a sheriff deputy to come and physically remove them so I change the locks. Lease or no lease I'd let the judge sort it out. You'll win....document everything.

Here is a thread where I go into great detail on my process. http://www.biggerpockets.com/forums/311/topics/125040-how-do-you-scale-your-business-so-quick

Creatively! Do a direct mail campaign to owners of properties you'd like to own in your area. Buy using seller financing/land contract, fix and stabilize and then refi with a local bank once you've built in the equity. I do this and most of my deals are done with no money down.

@ Bob Bowling The market CAP is for other properties....not this one. You can figure the market cap even you're not looking at a property to buy. Commercial property is valued on CAP rates. Which is based on NOI. This one is technically distressed and that would make me value it more based on how it would perform with me running it. I'd want a discount based on it needing turned around though and I'd need way better seller finance terms for me to help them.

I struggle with this as well. I buy with no money down seller financing mainly and then refi with a small local bank after a couple of years. It's hard sometime for me to decide whether to use cash flow to pay down debt or continue to do deals. Even though they're no money down I normally have some reno costs and closing costs and so on. Truthfully though I feel that doing as many deals as I can like this will produce the bigger pile of cash at the end of the long road ahead.

You can figure out the market CAP by finding other storage facilities that have sold in that market. You'd need to know the sales price and the NOI of the properties sold. Finding a commercial broker that handles self storage should be helpful.

Have you tried setting down with sellers and discussing how they keep track of everything? You may also want to repost all this info in the commercial forum here as well.