All Forum Posts by: Cason Acor

You said the property is an 8 cap at the asking price, so I'm assuming this is strictly an investment property, correct? As far as I'm aware, for investments purposes, you can only get an SBA loan to purchase hospitality and self storage assets. You can't use an SBA loan to purchase a fully occupied industrial investment.

Unless you plan on occupying a portion of the building you're buying, then you have to occupy at least 51% of the square footage in order to use an SBA loan.

Can you clarify your question? I don't understand what you're trying to ask. When you refer to cap rate compression as a strategy, are you talking about forcing appreciation by stabalizing a deal after an acquition?

Are you asking what other factors affect a cap rate besides risk?

Just means the building will be delivered empty and the ideal buyer will be someone who wants to use the property for their business. But anyone can buy a property regardless. An investor could buy it if they wanted to lease it up and turn it into an investment. 

INAL, but I think it’s highly unlikely your current tenant will be able to hold you liable over being honest. 

@Gavi Balsam "full value" could mean literally anything. If they're actually recapturing all of the true asset values, why is the REIT still trading at a discount? Stock buybacks are also a common way to falsely boost earnings per share without a corresponding boost in actual earnings.

From an investment sales perspective, underwrite each use independently to segregate the NOIs. Then identify the market cap rate for each use. Lastly, combine those into a weighted average cap rate for the entire project.   

Relationships, and being at CBRE, JLL, Collier's etc.

@Eric Sebast if you run into any issues with your current bank, make sure you shop the deal around to other lenders. Everyone will have different terms and underwriting requirements and some will lend in deals that others won’t. 

SBA loan and find a good, national commercial loan broker. 

Why didn’t you use an SBA loan the first go round? You would have had a 5-15% down payment. 

SBA 504 and 7A loans