All Forum Posts by: Craig E.

A sole proprietor/ third party PM must have a broker's license in CA.

Hello from Nor Cal too. Do your neighbors know you're a Yankees fan? Go Giants!

Worth the cost? Are you hiring a contractor? If you do it yourself, prepare to scrape and patch. Not hard, but laborious. Depending on year, be mindful of lead / asbestos (floors too). Check your state/local laws for disturbing interior/exterior surfaces/containment/abatement/environmental (particularly if it will ever be a rental). Some munis even require a permit.

Each state (where you perform the work) has their own licensing requirements.

I install in-line sub meters for a fraction of the cost (depending on service diameter) and bill back. Is the AR burden the reason you are considering going through the muni?

Interesting situation. Let us know if the provision is removed. That said, since the beneficiaries of the restriction are the owners, you could go to them individually and have them sign a waiver re the provision. Cumbersome, but effective. Also, if that doesn't work, look for a structure that doesn't necessarily comply. If the owners acquiesced (implied waiver), you may be able to argue your case on that basis.

My response was relevant and material to Jason's query (re "any feedback"). Nuff said.

As a broker/General Contractor, I've deferred commission and rehab costs for flips that I believed in (no equity other than a lien). Your model is fine, except I (contractor) would push back on the provision requiring tenant repairs/ modest improvements until disposition. That could get pricey in the aggregate and be time intensive (for the contractor), unless the rehab includes new infrastructure and the contractor is simply warrantying his work. That said, he may be fine with it as is. What is the scope of the rehab? That is critical in determining whether the on going maintenance portion of the deal is reasonable.

Generalization re large (global), multi fund (flex class) portfolio holders/ managers, funded and buying (always building pipeline). The take away being that they are easy to find/ present to, but tough to crack (for good reason). Thoughts / experiences?

All cash. Liquid by nature. Very quick (if you have "a deal"). Even then expect every PCA and DD issue to land in the seller's lap (in retrade). REIT's purchase in clusters. Research REIT portfolios. They will have multi properties in specific markets <10 ish mi's away from each other (easier to manage). If you have an under performing property within their cluster (or a portfolio cluster in a new market), they will entertain a deal, but it must be a fire sale (again, expect all physical issues to land in the seller's lap for retrade). REIT's are not just property owners, but fiduciaries in equity. They must play hard (by law) Over paying for a property, repairs/improvements or management is actionable. Take your deal to the regional PM (managing a local portfolio). He/she is also a scout (and they always do drive by's). They will know if your deal fits the field and product model. If it does, they will connect you with their acquisition team, internal or 3rd party broker. REIT's are easy to canvas because of their size, but the deal must more than pencil.