All Forum Posts by: Daniel Rojahn

Erik, yes! That's exactly what I'm looking for. I just haven't met that person yet. As I go about due diligence to find if the deal is worth pursuing and assuming I find that it is, finding that individual will, theoretically, become easier because I'll have a deal/pitch to bring to them, not just hypotheticals. Thanks!

Mala, I don't know how I missed your post earlier. I was going to have an architect help me with planning and design but didn't know they could help figure out zoning issues! Thank you very much for the tip!

Going to have an environmental inspection as well as part of my due diligence. Thanks, all!

Great points, Oren! Will definitely watch out for this!

Thank you so much for the input, Matt! It is greatly appreciated! I'm still going to proceed checking it out, albeit very cautiously! I should have mentioned that it has a huge amount of open office space (at least she sheet of utilities exist) and only a few stories were technically for manufacturing, a lot of which have been cleared out. It is in a desirable area with demand for rentals and has plenty of parking space. I do realize I will have blind spots. I would be hiring at least a few consultants (if I don't find experienced partners) to help me with that as well. I absolutely will be keeping your input in mind going forward. Thanks again!

I am a newby. I have spent about 6-7 months just inhaling BP (and other) real estate podcasts, audiobooks, and picking the brains of investors I have networked with. I have analyzed, walked through, and even offered on a few single family/small multi-family properties (though all fell through at negotiation). I really want to aim my sights higher though. How high?

I recently found a 53k sq/ft building downtown in a relatively small but active city in an improving area. It was used for manufacturing. It could, by my estimate, house 50+ units if converted. Nearby apartments rent for upward of 1k/mo for similar units. Would be grossing between $500k-$700k annually just in rent and there is plenty of extra space for storage units to rent out as well as space for coin laundry. The craziest part is that it is for sale for under $300k. I can hear the "Something HAS to be wrong!" comments already and I get it, it sounds WAY too good to be true. I'll be taking every precaution as far as inspections, checking on zoning restrictions, insurance requirements, etc. before making any moves. I'll be walking through this weekend with another investor and a commercial real estate developer in the area to get a first glance. It was for sale for $700k just a few months ago (still cheap) and although, yes, the rehab will be massive and expensive, I love the idea of and concepts found in commercial investing and I feel this could be a great opportunity (you never know if you don't look). I will be looking for syndication and partnerships for this deal as well. I have my agent looking at cap rates in the area and he is going to do some more research on the building for me. I will post a follow up comment in the thread afterward. In the meantime, wish me luck!

Hey, Adam. Thomas M. (not sure last name but is active investor on BP) maybe someone to connect with. He does investing in Fort Wayne (lots of properties near schools) and may be interested. I am in Iowa but from IN and am not afraid to invest out of state (cash buyer). If you would, PM me the property info and pictures and I'll take a look. Also in the meantime, Thomas might be a good lead as well.

I should add that even if you end up only renting for 600/mo (still almost 2.5% of purchase price, btw) or have to put 30-40k into it to get it to where it will rent for the quoted rent, those numbers will still be good! Ex: 25k purchase + 40k renovation = 65k total to receive over 1100/mo in rent? Send like a good deal to me. Not to mention, if it is a crappier property in a slightly nicer area and you do renovations, you'll be adding equity.

I actually am looking into a similar property right now. Cash flow is supposedly 1150/mo. with an asking price of 39900. I offered 35k with an inspection contingency. They said they would only accept the offer if I waived the inspection (HUGE red flag, especially considering it is supposedly "turn key"). After more research, I found out that the owner received a forgivable mortgage from the city as they wanted the area to improve. Forgivable mortgages come with stipulations. In this case, the only one (that I'm aware of -will be talking to someone at the city to confirm) is that the property would be rent controlled until the end of the mortgage term (2020). Not a problem though as numbers are still good. Though I can't have an inspection, I can perform a very very thorough walkthrough. I'm still going to pursue the property. No matter what, it doesn't hurt to offer as long as you are sure you have inspection and walkthrough contengencies. Will it end up being a flop? Maybe. but don't be afraid to dig for gold because it would be "too good to be true" for you to find some.