All Forum Posts by: Derek Clark

I have a potential tenant interested in leasing a commercial spot that I am currently under contract on. I have met them and can tell based off there lease history and our conversation it would be a great tenant and most likely long term. They would be operating their well established Heating and Air business out of the dwelling I have available and would be adding gravel to the parking level and fixing up the inside slightly on their dime in this deal. 

They have offered me $200 below what my initial asking lease price was based off the other comparable places they have found being priced a little lower and includes an outbuilding/warehouse for storage. If I take there deal I will only be cash flowing around $100 a month but my expenses would be covered and I believe I would have a great low maintenance tenant for the long term. 

I am seeking some advice from experienced investors on weather they would take this deal and let the tenant pay down the debt and sit and let the property appreciate, I did not mention that this property sits on a major highway and at an intersection of a steadily growing area. Or,  do I push for an extra few hundred in cash flow a month and risk losing out on a long-term tenant? If this happens I will likely be putting in roughly 2K - 5K worth of updates to the property to make it more attractive to tenants and possibly waiting a month or so for another good tenant to come along and hope they pay what I would initially want to price it at. 

as i am writing this I am leaning more towards taking their offer. A good tenant can make all the difference and if they are willing to make a few updates to the property on their dollar and my expenses are covered then that cant be bad deal, right?  I also have the opportunity to raise rents over time.

I look forward to your thoughts! thanks.

@Joel Owens Yes the digital type of billboard is exactly what I have in mind. I love the idea of being able to control the ads/display settings from my PC at home and the fact that you can add as many ads as you want (within reason). 

I will definitely look up Ted Turners auto biography. 

I am not sure what you mean by buying the dirt, can you give me some more detail on that? Pricing/Terms/etc. Have you had experience doing this?  Thanks for you reply!

@Jeff Kehl appreciate the response. I knew there were regulations but was unsure of where to look to find out what they were. I went through the city and county websites but did not see anything regarding what I needed for advertising on a hwy. I will start with Lamar! 

I agree with you also on having a plan to cover the cost of the property. I have 4 other rentals in the area and am very confident it could cash flow if I turned in back to residential. This is my first commercial property so having that plan B to go back to residential was a big plus. I am going to research the commercial opportunities first.  

I will research the top commercial brokers in my area and see how they can help. Very helpful, thanks!

I am under contract on a property that is currently zoned commercial. It has a 1200 sqft 3 bed 1 bath home on the front side of the property facing the busy highway and the back side of the property is open land where the possibilities are endless. The front of the property sits on a busy highway with 20K+ cars a day going by the property. There are roads on both sides of the property for multiple entry points if needed. The owner of the property ran a antique shop there for the last 15 yrs and is looking to retire. 

I will not close on this property for another month. I am seeking advice on the next best step to get the right tenant in the property and at the right price. The area is growing quickly and I feel like it is a great location for a long term investment. 

I am also thinking of putting up advertising next to the busy highway and would love to hear your thoughts and any advice you may have on something like that!

thanks a lot!

My neighbor came to me a few days ago and mentioned that he will possibly be selling is home via short sale. Him and I are in pretty good standing so I have been trying to find a way that I can purchase his home to add to my rental portfolio because I have 3 rentals in the area and his home is in great shape and would need absolutely nothing as far as repairs, etc. and its across the street from my primary residence so I would like to have some control over who moves into the house. 

Would it make sense for me to approach him about doing a Warranty or Quit Claim deed to get him out of the mortgage and I take over the payments and ownership of the home and prevent him from foreclosure? Also, my understanding is he is going the short sale route to avoid foreclosure? Is that correct? 

I would much appreciate any advise on how I could pull this deal off via a Warranty or Quit Claim deed while also making it beneficial for him and his family. Thanks a lot!

@Marcia Maynard thanks for your advice. I think I would want to do something very similar to what you did in your example. By having the tenant and landlord agreement between the tenant and the home owner that would add protection on my end. then the home owner and I would work out another agreement that says he pays me to basically be the boots on the ground, so to speak.

I am not. Do you know if that is the same for every state? I will do some research into that. Thanks.

My neighbor is moving and wants to rent his home that is across the street from my primary residence. I have three rental properties in the same area. He and I are in discussion on me acting as the property manager for his house because he will be about 3 hours away. 

I would like to work out a deal with him because I would be finding the renters and basically handling everything as if it is another rental property of my own and I would make money of course. 

what advice do you have to set this deal up the right way between my neighbor and I? I told him that I would need at least 175.00 a month or 10% for it to be worth my time. The house would probably rent for around 2200/month it is in great shape. Am I asking the right amount to manage the property? 

thanks for your help!

I am currently under contract on a piece of land that is zoned residential with a small single family home and 2+acres. The location is surrounded by office buildings and new development for retail and highway business zoned parcels. I would want to rezone the property for commercial use after closing given the surrounding areas already being commercial. My concern is there is a church next door and a small grave yard is adjacent to the property but you really cant see the grave yard from the property itself or the road due to trees and the fact the grave yard sits back off the road behind the church. 

My question is should I be concerned at all about the grave yard so close and will that have an impact on rezoning or the types of businesses that would want to lease out the land?

Also, what advice can you give to determine the highest and best use for the property?

thanks for your help!