All Forum Posts by: Daniel Lioz

I am a regular person (not realtor or agent), what are the steps to buy from Crexi or LoopNet? If I find a property that I am interested in, contact the broker for more information or additional details...What's next? If I send a LOI (Letter of Intent) do I still need a representative like a RE Broker for residential properties? Who represents me? At which point do I need to find/engage this buyer side person and say I am interested in this property/warehouse/building can you work with me? Who pays for the buyer side rep? Do I need to find one that specializes in what I am looking for...like self storage or warehouses or old building conversions? What are fees and steps?

Thank you for the information!

If your other property has equity in it, have you tried doing a regular refi loan with the other property as collateral for equity of the first property? The LTV will be based on the assessment value which you said is 580K, so your 20% or so might be there between the high assessment and the cross collateral. with 20% down you can get a regular loan even if your credit is not great. If your situation permits it, try doing it as your primary and move there for a year and house hack. Depending on the property, I also would easily increase the value by adding a $10K office shed that just has electricity to it. This has been an easy value add if property allows it.

Great work!

What was the purchase price CAP vs sell CAP? Was this off market deal or you found it through some listing?

 Why self storage are defaulting on loans? Is it because they are being reset with higher interest? If they were bought with cash flow, I would have thought self storage is pretty stable in any economy, people will continue to pay $50 or $100 for their storage units to keep their stuff.

Sorry to add my 2 cents, but may be you need to consider how it will increase the value of the land vs just the value of the contract. Since the billboard is owned by the company and can be taken down, I would personally take no money at all for a period of time if the contract states that you own the structure and they cannot take it down even if they cancel the contract.  Now this increases the value of the land which you can easily resale.  Also I have seen billboards that are positioned that your land is no longer very useful for anything else, so I would make sure they position it so you can add additional value, like building out the land with driveway, etc.  Another point is that I have seen contracts that billboard companies pay all taxes on the lot, so if you increase the value and increase it even more down the line, they are on the hook for the taxes.  Again just my 2 cents because the land with real property on it...like a billboard that is real value.  In addition if your land allows to build a structure, usually local billboards (of the business at the location) do not require any special license, but because it will be right next to a big national billboard, it will get a lot more visibility, this increases your land and rental for that space exponentially....now that is money in the bank. 

 I'm no expert, but I would say no. Considering in your example a $500K total lease value is worth only like $100K or less in today's money (50 years of inflation) and there is probably a clause in the contract that it can be terminated at some point. Insurance on billboards is probably to only cover the construction cost and little liability since it is on the ground, which might total like 10 to 100K depending on construction....so the money equation just doesn't work in terms of value of contract vs loan.

Just an idea to stand out when you are ready is may be some cross marketing to add value, since it is close to ski resorts may be have a deal with local ski rental place to get a discount if you stay there or add some casino incentives (like one round trip on Uber included)....these are things just to get it rented fast and get traction. May be buy some second hand fishing equipment if there is fishing near by. Add the luxury feeling to the luxury place.

Put rocks and pavers on the top...like a Roman road. It will also help with the drainage as it can go into the ground.  You will probably pay more to remove the existing exit area so you maximize your ground area for what ever usage you want it to be.

Bowling alley or gym. Also will depend on sprinkler systems and fire doors, etc of what kind of business you can have in the basement.

You can also convert it into small office spaces to have flex office or conference center.  You can spend additional 20K and built an elevator that by itself will increase the value of property because it will become usable space.  In the basement you probably have good sound proofing, you can also consider a recording studio that rents it by the hour....depending on the area of where it is to see if there are demands for any of these things.

So what does the purchase price includes?

What is the ARV of the container home? Any issues with a loan or mortgage that you see with banks on the re-sale side?

Good luck!