All Forum Posts by: Derek Bell

@Henry Clark

Thx for the reply. My CPA thinks is best to just pay the taxes and move on. We have had talks about it but never talks about specifically “cost seg”. 

The sale of one of my businesses was a stock sale, so it is 20% of the cap gain, so roughly 550k for that. Secondly, the tax on the sale of a warehouse of mine will be about 250k. 

Has anyone done a cost segregation for a tax year?

I will have a 750k+ tax bill from a warehouse I sold and from one of my businesses I sold this year. I have not looked too much into a cost segregation, but I am wondering if my current properties could help on this tax burden I have coming up. I have three properties totaling around 8.5 mil. 

@Joshua Austin

The extra 5 acres of land lease is for sure helpful in getting that rate. I didn’t catch that at first. 
either way, that’s a great deal. Sure, pm me anytime to set up a zoom. 

@Joshua Austin

How did you secure a nnn tenant for 10 years at $21/sf? If this is your first move into commercial, you did good. I have been in this space for 5 years and am currently building a 20k sf warehouse for single tenant. I should be done around Q3 2023. It’s a spec build and have it marketed for $14/sf nnn or buy at 5.5. I would love to find out how you secured a $21/sf nnn tenant for 10 years. Well done. 

@Joshua Austin

You are getting $21/sf?!

Dayummm! How long is the lease? 

I have used reonomy in the past to search properties based on debt. Works well and the data is usually correct. You can use reonomy for a few days but then they make you commit to a year. I did the year and then opted not to renew since I didn’t use it as much as I thought. 

I have done what you guys are doing multiple times. 

I am curious, why are you doing 20 units at 1k sf each?? If you are planning to sell this to an investment buyer, stick to units around 4-5k sf. Only mom and pop businesses will rent a 1k sf unit. Investment buyers want to see bigger national/regional business as tenants, not mom and pop. Also, the build out for 20 units will be costly. Do 4 units at 5k sf each. So, doing less units will be better for you all around. Less up front cost, bigger named/pocket tenants, roughly the same lease rate, etc etc. 

Do a NNN lease and bring in that broker's help while you are in construction. Try for a 5 year lease. I wouldn't do less than 3 if you are planning on selling. Also, you dont need to do property management. Do it yourself.

Finally got my construction loan. Not as easy as it used to be and the banks are drying up for sure. Got 85%LTV with a rate of 6.5 for 5 years. Amortized at 25 years. Half point origination fee with a 321 prepayment penalty. 16 months interest only.

@Ronald Rohde tell me about it. I locked in a 3.5 earlier this year, now its double. I think prime is at about 6.25. It’s only going to get worse. Prime hasn’t been this high since 2008. 

@Ronald Rohde current lender will convert. 7.25 for 25 years.