All Forum Posts by: David Wolber

@Christen G.

@Mat O'Grady

Since the property is owned by an LLC, and an LLC is technically it's own entity, you have to have passed the BAR in order to represent the entity. Even though you may own said LLC, it is still seen as a separate thing. It would be just like if I had asked you to represent me in court. Additionally, this is not just limited to CT.

Right at the beginning of the year I had some heating issues in a commercial office building we own. The propane delivery company did not get my tank filled over the holiday and on Jan 2nd the building was 34 degrees. We had that fixed by 11:30 am and it was over 60 degrees by 6pm. Then, that same week, we had a huge snow storm on that Thursday where a wind-blown snow drift clogged the air intake of the finance. The next day the building was in the low 50s and it took me all day to figure out that the intake was clogged, but I reacted as soon as I was aware of the issue.

I have a tenant who rents M, Tu, and Fri. So she basically was unable to work that whole week due to the building heating issues since that Monday was New Years Day and we had the heat issues on both of her other days for that week.

She has just approached us about reimbursing her for those two days.

We’re talking about $70 here, so not a huge deal.We plan to pay her for those two days as a PR move.Now if she starts trying to go after us for loss revenue then that’s a whole different situation.

I’m wondering if anyone else would do this or if I am being too nice?

Also, does anyone have anything regarding this type of situation in their leases or do you just deal with it as it comes?

Thanks!

@Dale Kuhn Welcome!!

My wife and I own a commercial building in Groton and are also currently engaged in the fun process of viewing and number crunching 5+ units in New London and Norwich.  The folks who already have posted in this thread are a fantastic resource as well as just awesome people.  They have helped us as well.  The meeting that @Mat O'Grady mentioned is a great place to just ask any questions and meet people who are doing the same thing you are.  Good luck with your adventures and let me know if I can help in any way.

Thanks for the info @Brian Pulaski

Though we havn't completely killed the idea of moving forward with this deal, we are actively looking at other properties. 

So I found this property in South Eastern CT that was a perfect fit for my application.  The town is rural so they don't really have a commercial zone per se, but with special permit they will allow the business my partner is looking for.  There used to be a dirt bike showroom and repair place on the property.  The shop section has a "commercial" space attached to the house.  So technically it is a residential house.

After we walked the property yesterday, the selling agent informs us of the following:

-The house is under CT Title 19 (Medicaid)

-Because of this fact, the nursing home the current owner resides in has a say in the selling price as well as the state of CT

-The house is a moldy mess and hasn't been lived in for over a year.

-All the copper in the basement has been cut out and sold (not sure if a break in or family)

-One of the foundation walls is crumbling

-The nursing home has rejected several offers including one over asking price.  They refuse to sell at under the town's appraised value of $151k (it's listed for $125).  It has been on the market for 200+ days.

-The appraisal was done two years ago when the house was somewhat lived in so doesn't reflect the current condition of the property.

-The estate has no money to fight this.

So all the mold, copper and structural issues are actually not an issue for me since I was planning on gutting the place to put the salon in, however I have no intention on telling the selling agent this!

Has anyone ran into this situation?

I have reached out to my lawyer to look into it as well.

I would think a third party appraisal chosen by the nursing home would clear up the price issue, but according to the listing agent it seems they have no desire or care to entertain anything. 

Thoughts?

@Jarrad Horsley how did you end up doing?  Did you go forward with a Norwich property??  I know a lot of investors shy away from Norwich, but I can't help but think SOMEBODY is making it work or everything would be for sale.  My wife and I are looking into Norwich as well and we think a lot of the properties for sale currently have potential.  If others can make it work, why can't we!?  Especially if a lot of other investors don't want to go near it, seems like less competition for great deals!  :)

I know this is far away, but I used Charter Oak Federal Credit Union up here in Groton.  I have all by business accounts with them and have used them for 2 commercial real estate loans.  They are responsive, nice to work with and portfolio smaller loans. 

So my advice would be to check your local bank scene and call them up.  When I was shopping around all the local banks were absolutely happy to talk with me.

I will absolutely be a maintenance company for you! Additionally, we can work with my very awesome real estate agent for leasing. And we could be your point of contact. Having been in the Navy myself I very much understand all the pains of it. 

What is the property zoned as? I'm assuming since there is an established practice on site that it should be zoned commercial. Therefore this would be a commercial real estate deal. 

Due to the residential units on the property I'd be willing to bet the dentist office is not a NNN, but you will easy determine that when you look over the leases

You should definitely look over the leases so you know what the cost shares are this is the best way to determine the NOI and therefore valuate the deal appropriately. As above-mentioned I am assuming this is commercial so asking the seller for active leases should not be a surprise

As far as the space goes and with most commercial spaces, vacency can last a bit longer for some types of businesses. So definitely plan on it. However, converting the space for a future tenet is negotiable but usually the tenet takes the responsibility of build out. 

Do you know how long the current lease is? How much time is remaining? Is the current doc wanting to leave or is he happy? If he isn't happy, what can you do to make him happy and keep him?

Also, if there is only a small time remaining on that lease and he's planning to leave, that means the building is worth less. 

Good luck!

HAHAHA @David Friedman we're not quite to that point out here in CT where cannabis cultivations is game for legit commercial leases.  Though there are a few around for the medical folks.

Another data point is my business partner / better half / wife is an owner occupant in this particular office building so checking the data wouldn't be that much of a chore.  And the unit is WiFi enabled.

What about a three month probation time in the lease as an evaluation period?  Basically it would allow me to monitor their use, then adjust the rent if needed??  Otherwise I have no data as to how much they will use.  They operate out of a home space currently so no previously rented spaces.  Though I could ask them I suppose.

Thanks!