All Forum Posts by: Cody J Leivas

My order would be: 

- They will keep me in compliance

- I won't have to worry about keeping up with the entity paperwork. 

-Then Privacy. 

We typically use a law firm. It's only a small amount of paperwork so make sure lower-level lawyers are working on it rather than the expensive partners. 

Hello Erik, 

You will want to focus on the deal first and the debt second. Collect Offering memorandums from brokers, loopnet, and crexi. 

You will want current financials (last 12 months), a rent roll, operating statements, rent comps, and sales comps. 

My buddy works as a debt broker that can go direct to Fannie and Freddie (message me if you want his contact info). He can send you current Fannie and Freddie rates. 30 year amo, and if you must stabilize the property, you can likely get Interested Only. 10-year maturity. If you talk with him he can better answer your questions. 

Commercial Real Estate is different than residential, and the price point is determined by income and comps based on cap rates. 

Where is the property? I would look at one of the large brokerage houses and contact someone on their Retail Team. 

CBRE, Colliers, JLL, M&M, Cushman

It will likely cost between 5 - 8.5% of the total lease amount. 

You don't need to use the pivot table. You can use the sumif formula to organize information better. 

Try looking up how to use sumif on youtube. 

If you send it to me, I can do it in less than 5 Mins.

A typical equity raising fee is 2-3% of equity raised. 

When the numbers get into the $10M+ it's 1-2% of equity raised. 

Example: 

$300,000 * 2.00% = $6,000

You can give the broker $6,000 worth of equity. 

Cash-out Refinance - Refinance the debt and pull money out. May be more difficult in the current lending environment and you will likely have a high rate than when you bought in 2021. (be careful because you could take on too much leverage)

Cross Collateralize - Buy another property and use your current equity in the property as collateral. You might need to bring new money into the deal as well. (be careful because you could take on too much leverage)

Sell & 1031 Exchange - Sell and move your proceeds into a new building that can cash flow and or produce a better return. 

The more you know the more valuable you are so keep learning. The skill of consistently learning eventually leads to success. It's a long game and success doesn't come quickly.

Evidence = confidence. 

I have taken the course.

Initially, I started my career in real estate financing at a small community bank, but later on, I transitioned into a consultant role where I specialized in underwriting and valuing deals for various groups involved in commercial property acquisitions. However, one particular group became my primary focus due to the volume of work they provided. Presently, I collaborate with them on acquiring industrial properties in the Midwest for their investors, while simultaneously developing my own investor base to invest alongside them.

Over time, my approach to adding value has evolved, but my ability to accurately forecast returns and develop strong business plans has remained a constant. Excel modeling was the foundation.

The lease will spell it out. 

If it's multi-tenant, you can put the servicing expense in the CAM. I would put together a maintenance contract for the HVAC. It may be LL responsibility but it's more likely that it is on the tenant, which they are responsible for the service/maintenance of the equipment. As the LL you will still want to make sure they are keeping their HVAC serviced because if they vacate, they might do so with a broken HVAC and the LL will likely have to fix it. In general, if the tenant is responsible for certain parts of the building, make sure they are fixing those items periodically. If/when they leave, you will want a well-functioning building not one that is going to cost an arm and a leg to get leased.  

If the lease doesn't spell it out you may want to get an amendment or add the proper language to the next lease. 

Check out wall street preps real estate course. They are the best when it comes to building Excel models at the instructional level for a reasonable price. You can do it all online or in person in some cities. 
Highly recommend. As someone that has gone back to school to get a Masters in Real Estate, I would say this course will get you 70% there in terms of foundation and 100% in the hard skill of excel modeling FOR A LOT LESS MONEY. 
If you want to meet people in the industry and have an easier time getting a job in this field, a Master's degree will help.