All Forum Posts by: Cole Bigbee

@Nick M. I believe the real estate company JLL handles all of the USPS properties. Here is a link to their website

https://www.us.jll.com/  

@Jacob Johnson might be a good idea to get with a local civil engineer and a local dirt contractor to hear their opinion. They could probably take a quick look and give you an idea if it was feasible and what you would be looking art budget wise for the dirt work.

Let me know if I can help @Allen Chaney and @Michael Logan. I work with a few banks in the area and can also turn you on to some private lenders if interested. 

@Tanay Patel

Definitely check the zoning first and also see if a Phase I has been done on the property. If everything checks out, then building some smaller 2500 sqft-10,000sqft warehouses with some office space could be a good fit for the area. My suggestion would be to go to the industrial areas and see what is leased, vacant and what  type of space these tenants could use to improve his or her business. Although I haven't done any business in that area, my guess is the smaller warehouse space rents for more per sqft. So five- 2,000 sqft warehouses would yield you more than say one- 10,000 sqft warehouse.

Hope this helps!

@Henry Clark

Normally we do a 3-phase service with 120/ 240. On the smaller spaces and we haven't done any floor drains but that is an excellent idea! The 12' x 14' door is pretty standard and I do a chain operated as it is easier to replace and less that can go wrong.

On the outside parking, I do assign some yard space either in the front or the back of the building, as so it does not block anyone else from getting to their unit. You might even do a small fence for each unit for yard space as most of the people that would rent these types of buildings will need some outside storage.

On cleanliness, I screen the tenants pretty good to start with and try and select the ones I think will take care of the property and keep things neat and tidy! 

Looks like you've got some of the major items nailed down. This type of space is my bread and butter! The biggest thing on these type buildings is to make sure they are tall enough. My suggestion is a 16' tall building as that will allow you room to put a 12' x 14' overhead door, which means someone with a big truck, RV, or piece of equipment can get it inside the building. The sweet spot for me on the smaller shops are 2,000 sqft, with 1 restroom and 2 offices and the rest in warehouse space. Let me know if I can help in any way.

@Ajay Sharma  What type of roof? Metal or membrane type? If it is metal, is it a screwdown panel or standing seam? Please add some pictures and I can help!

The best advice for locating commercial properties is network and keep your ears to the streets! There are plenty of properties for sale listed online, but most likely, none will yield a 10% CoC return for you. At best you will be looking at a 7 Cap. The commercial world is an excellent place for you to be "cutting" your teeth. Stay after it and good things will come your way!

@Dave Foster

I have an owner finance deal in place on an industrial property, where I was the seller and offered financing. I received a down payment and will get the balance in 4 years. Can I do a 1031 on an owner financed property? If so, is that something I should have set up on the front end, or can it be done when the balance is due?

I only invest in warehouse buildings. 10,000-25,000sqft. 1K-2K in office space with the remaining in warehouse space and some dock doors. Great for the light manufacturer or service provider. I'm currently developing in Huntsville Alabama which has many different industries. These type buildings are in short supply and rents keep going up! Looking to expand to other areas in the future as, I have an unfair advantage in that my family owns a metal building manufacturing company.