All Forum Posts by: Deren Huang

@Ronald Rohde

The tenants have improved the property significantly by installing climate control in the majority of the space. The lease rate doesn't include the space being climate controlled, so the option being exercised is a high chance, and if they default or move out, I can jack up the rate based on the market and improvements. (run on sentence, don't judge)

Also, an owner/user could be a play for exit. 

@Ronald Rohde

Market is really good for landlords haha, probably not like Dallas and other metros. I heard some places have less than 1% of vacancy...

 Attached are some screenshots of the analysis from JLL for the appraisal. 

@John McKee

The lease structure is not an absolute NNN, I am responsible for the roof they are responsible for everything else. The % was clickbait =)

@Account Closed

the % was for clickbait =), I have decent reserves and will skim off the top for additional until the renewal

@Jade S.

Good call on the cash reserves, I had convo's with the tenant and they plan on exercising option, they have built out the facility extensively. 

Market is good here, approx 3-4% vacancy. 

We have 3 grade doors 1 dock high. 

12-14 clear height, majority climate controlled. 

Hello All!

Grateful for this community. 

I wanted to share a deal I recently closed on in Tulsa.

This is a 25k sqft manufacturing building, as you can see, it has been added on multiple times. 

I may lovingly call it my Frankenstein building. 

It had a 3 year NNN lease attached to it, with approx 2 year left, and an option to renew for another 3 years.

Purchase: $1,100,000

Rent: $10,000.00/mo + NNN charges (I still can't believe this is a thing)

Debt Service: $5,887

Cashflow: $4,113*

COC: 17.26%

*This does not include reserves for vacancies, etc

Next steps is to raise capital to get more deals like this!

I AM LOVING INDUSTRIAL!

Just walked a huge value add mobile home park in a rural area (Population 4,000)

Cashflow is great, financing may be tough, but ultimately what scares me is the exit strategy, most homes are owned by park. 

What are some good tips to be attractive to buyers in rural markets? 

@Adams Jean Baptiste

Getting feedback from your agent or going with seller's agent could be key. 

If you are constantly getting the 2-4 place in your bid, then it's just a numbers game aka getting more offers out there and being competitive.

If you are not even close to winning the bid, then it's time to either up price or terms, or both. 

This is a great article, off-topic but those ads are crazy.

I used to give little gifts when I was more in the day to day of my rentals and also when I didn't have as many as I do now.. It would be a big bill if I was going to do that. 

At the time, being smaller was my competitive edge so leaning into relationship was key. 

But I have shifted and the rentals I have now are a business and I treat it like that. 

If you have the means and time, why not?!