All Forum Posts by: Brock Mogensen

Sounds like a solid deal!

However, worst case scenario is the warehouse sits vacant for a year after the sale-leaseback term. Have you modeled out a vacancy period post sale-leaseback term? Did you include a TI budget for the new tenant? Do you have a plan in place for the re-lease?

Short-term sale leaseback deals are a great value-add opportunity, we do lots of them. Just need to make sure to have these points buttoned up. 

Took me about 3-4 years, through syndication deals.

Networth is a great goal, but also want to ensure cashfloooow is strong

Syndication deals can be structured many different ways. The key is to understand how to underwrite a syndication structured deal.

GP/LP splits, acquisition fees, asset management fees, refi/sale periods..among many other things that vary when underwriting a syndication deal vs traditional purchase.

Happy to share my model for underwriting these deals if you want to shoot me a DM.

I'm assuming you are referencing an underwriting model instead of loan calculator?

Having a good understanding of how to underwrite industrial deals is critical, as there are some major differences between multifamily and industrial underwriting.

I built out a custom model for underwriting Industrial deals, has helped a ton.

 Yes, I did. I will send you a DM with some further info

Track record, a strong deal, conservative underwriting, realistic returns, good debt terms. These are some of the things sophisticated LP's look for.

Those that didn't put the right debt on their properties and are bad asset managers will see some pain. Those that have conservative debt, liquidity, and are strong operators - will capitalize.

You are likely talking about a syndication not a fund..big difference. Syndication is deal by deal, fund buys multiple deals. There is extraordinary differences on the legal/compliance side between the two.

For a syndication, offering equity for investors is the most common way.

There are many different fees and structures you can go with.

I suggest learning the underwriting side of syndication deals before engaging an attorney. And you definitely want to engage an attorney and not just copy and paste docs.

Happy to send over my underwriting model for syndication deals, just shoot me a DM.

I love NNN. But there are some differences you need to be aware of compared to multifamily.

The lease is the most important part. How much term is left, strength of the tenant, rent escalators, rent/sq ft, etc.

You also want to make sure you have a good understanding of the roof, parking lot, and mechanicals because in a traditional NNN lease, the landlord is reponsible for these items..and they can get expensive.

If you're planning to invest in another market/out of state, you want to really understand the market. A common mistake is investors see the low price/doors in the midwest and don't truly understand the location. C-class locations can make money but your operatins need to be on point. Solely having a PM isn't all it takes, asset management is critcal. That being said, definitely want to get the cash to work. Either become an expert in the niche/market you want to invest in or invest passively alongside an experienced investor (syndications/funds).