Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Jason Moore

Jason Moore has started 3 posts and replied 13 times.

Post: Triple net lease portfolio- how to split with partner?

Jason Moore
Pro Member
Posted
  • Contractor
  • Granbury, TX
  • Posts 13
  • Votes 11

I have been in a partnership with my father-in-law for about 15 years wherein we bought land on a major interstate frontage road and developed & built commercial office warehouse buildings (we still have 10 of these buildings after selling off several over the last 4 years). All the leases are triple net. We then bought a property that had two 10,000 sf storefront office space buildings which are separately metered for electricity but share water/sewer. However, i then designed & built a bank building on the front of this property at a major intersection in town, with a 10 year lease with two 5 year options (I have is also triple net lease)

Now of course the partnership is strained because my father-in-law & I have been at odds for a few years. He taught me the commercial masonry business over 25 years ago (which I own separately). He then taught me the development & commercial real estate business. However, he was pretty much self taught & we never really ever discussed cap rates, NOI, etc. which I am learning about here on BP! We mostly talked about the buildings & their values as "cost per square foot" & does it cash flow.

Now we are starting the process of dividing the partnership or selling off the buildings & I want to price them right. Because he has many other sources of revenue besides our partnership he just wants to be rid of the properties not caring about the financial impact on me. These buildings gross over $1,250,000/year NOI=$960,000/year. We have always managed the buildings ourselves. Because they have been in the heart of the oil boom country we have had no vacancies since 2008/2009. But therein lies the new wrinkle, we all know where oil is right now...in a down cycle. The cap rate in the area for these types of buildings is 10%-11%,

Finally! the question(s):

Is it best to try to ignore any discussions of psf prices when dealing with an old school "partner"?

What other analysis should be done to truly value the cash flow from these industrial buildings?

How do I quantify the impact the slowdown in the oil economy has on the value of the cash flow (other than increasing my calculation for vacancies which I am sure will increase if oil does not rebound soon)?

Are there other analysis or discussion points I need to be considering?

I haven't really posted much but I sure read a lot on these forums as well as listening to the podcasts! It has been such a tremendous resource I became a pro member! Thanks in advance for reading my too lengthy post!

Post: Texas Multi Family-Loan Question

Jason Moore
Pro Member
Posted
  • Contractor
  • Granbury, TX
  • Posts 13
  • Votes 11

Most of the commercial loans I have gotten over the last 15 yrs. have been 15-20 year amortizations with a 5 year balloon. However my bank has always been willing to renew the loan at the end of the 5 years. Now, we all know that the gamble is that they "always will" renew & many have been caught with their 5 years ending in a bad lending year putting you at risk of the balloon payment coming due with the bank taking a pass on renewing. Also most of these loans have had a "prime plus X% adjustable rate". These deals in my area may have been because of the volatile economy of the oil industry. Recently I made a deal with another bank for a commercial loan at 1% over prime locked in for 5 years.

Post: Builder & Investor in Uvalde, Texas

Jason Moore
Pro Member
Posted
  • Contractor
  • Granbury, TX
  • Posts 13
  • Votes 11

I have spent the last 25 years in the commercial masonry business in the Midland/Odessa Texas area. The last 15 years I have added to that by getting involved in building & leasing commercial office/warehouse buildings in that same are. However, in 2013 my wife and I and 4 of our 5 kids bought a ranch in the Hill Country of Texas near Uvalde. I have a great general manager still running the masonry business back in Odessa and the commercial buildings are all leased out (triple net!) and I was able to buy two single family homes as rent houses, so now my family is at the ranch raising 30 buffalo, goats, chickens, horses!

Over the last two years I discovered I had essentially killed my kidneys by the long time over use of Advil and just last month had a kidney transplant. I tell all of you this because I used that time wisely to read and research all of the stuff I am interested in and construction & real estate are at the top of my list! I am very thankful for discovering Bigger Pockets. I tell others who don't know about it that it is a lot like Facebook but without all of BS! It is a focused community of those with great knowledge helping others with little knowledge and most importantly without talking down to them.

Now that the transplant is behind me I have decided to start looking at residential and commercial RE opportunities in Uvalde ( population about 15,000!). My thought before starting was "it's a small town how much opportunity could there really be"... Wow! I've already discovered not only what a great little town it is, with its little historical district, but I was told my real estate agent they have very little inventory of rent house available and are in desperate need.

I am truly impressed with the BP community and have already hired an asset protection attorney who is active on BP and was a guest on the podcast! So BP has already paid off for me! I am mostly self taught especially in real estate so I don't always know all of the lingo like more of the professional investors but I pledge to help out wherever I have knowledge that will help!