All Forum Posts by: Daniel Torres

@Chris Grenzig thanks for the advice on 1031

@Jonathan Schwartz thanks for the advice. What do you mean by gurus?

Hi All, 

My current situation is one that I have a fair amount of capital but not a lot of time.   I’m considering investing in syndications vs  buying single family homes.  The syndications appeal to me because of the passive nature but I’m comparing single family homes because they are the less time intensive properties to “landlord” in my area.  

It seems syndications have a fair amount of tax advantages and capital gains can be pushed back through a 1031 making it attractive as well.  Single family homes in decent areas near me (South Florida) are fairly expensive and cap rates are not great.  

Please convince me as to why syndications are better because, similar to many others here, owning a property outright and having full control is appealing but everything else makes me think syndications are a better investment for me right now.

Thank you!

Thanks Taylor and Ron! 

Yes I will be paying the rent from my business.  I am not purchasing their business however, I am moving my existing business into that space.  

I don't have leases in hand yet, we should have an offer accepted in next few days and then will get them with due diligence.  

I do have a rent roll which shows the rents increasing 2.5 and 3.5% annually.

Yes, my business is in the medical field, I don't know if it adds any more value as all 3 are already medical in nature. It's a gable style roof.

Hi Gang,

I am in the process of purchasing my 1st commercial Deal and I wanted to run the numbers by you all and see what you think.  I do not have an inspection yet but I believe the condition of the property to be fairly good.  Obviously that will affect the value and I will post once I get the inspection.

It's a 9800 SF 1 story office building in Broward county FL built in 1980.  Taxes are 33k/year.  Currently there are 3 tenants, the largest unit (5300SF) is also the owner of the building.  All tenants are medical offices.  The Largest space/current owner will actually be leaving for me to move my business into the space but for what its worth their rent is $9500/month.  The other two units which are 2300SF each rent for $4500 and $5900 (this includes CAM).  The tenants have 3 and 5 years left on their lease and one has a 5 yr option.  The purchase price is $1.9million

So... thoughts?

What questions should I be asking and what should I be looking at?

Thanks in advance!

Thanks for sharing everybody, great advice! 

Hey Patrick,   

Great advice. I started doing searches on list source and it doesn't seem huge but there are definitely some carry backs around.  Enough to give it a try.  I figure if going "direct to consumer" doesn't give me any solid leads my next step would be dealing with brokers.

Acquiring*  whoops!

Hi All,

I've been researching for a few months reading the threads, blog posts and a handful of books that I could find and am now ready to start investing in notes.  Before I jump in, I have been formulating a business plan with specific actionable steps for me to follow in the process and I wanted to run it by the group for suggestions and critiques. I want to get started in the route advocated frequently by @Bill Gulley of investing locally by purchasing seller carry back notes directly from the lender.

1) Marketing (go through courthouse records, direct mailing, calling, REIA meetings, etc)

2) Initial contact (1st phone conversation) - I plan to ask some basic questions about the note i.e UPB, payments remaining, interest rate, payment history, etc. If I am still interested at this point what is appropriate to ask for next?? Ask for a copy of the note to review? Ask for entire collateral file? Report from loan servicing company?

3) Initial Due Diligence - Check county records to verify lien position, property valuation, check borrower financials, check title, verify taxes are current, verify insurance.  Are most of these checks things I can do myself with public records??  Should I request an O & E report already at this point?

4) Negotiate -  based on condition of the file, property valuation, borrower credentials, etc.

5) Complete Due Diligence - This is the point at which I plan to employ the use of professionals like an finance attorney, title company, and/or a broker who offers due diligence services (such as those offered by SDXS) to check for note compliance, chain of assignment and all other legalities which I know very little about.

6) Finalize purchase (with an attorney? or broker?)

I know that it there is much to learn and that I will learn as I go with the help of competent professionals hopefully avoiding any big mistakes.  Thanks in advance for any suggestions!

Thanks @Chris Soignier, looking to invest, not start.

Thanks for the connections @Alex Franks