All Forum Posts by: Dennis Tierney

Chad McDanielI see you're just south of Lincoln. You could talk to one of the commercial brokers with Woods Brothers in Lincoln and they might be able to give you input as to what the cap rates have been for sales in your area.

Karen M.It isn't really difficult if you get a good real estate attorney with experience in setting up a syndication. I've had two set up and I was the "manager" for each deal and make all of the decisions. All of the investors however are people I know personally who are accredited investors so the expensive SEC rules aren't an issue and you don't need the 100 page prospectus etc... Be careful in sitting down with the attorney to be sure he doesn't design/set up a BMW when you really want a Chevy.

Steve GuerraIt sounds to me like you've a private money lender not a mortgage broker. A true broker IMO finds you the best deal with other lenders such as a bank or mortgage company or insurance company. He'll charge a commision (usually 1%) of the loan and that's how he makes his money, not on the money lending.

I think Steve's point is accurate. He's either falsifying to you or the IRS. Either way he can't be trusted and I would walk away. I recently had a seller admit he keeps 2 sets of books, one real one and one for the IRS. If he's not afraid to lie to the IRS, he's not afraid to lie to you either. I walked away from that one also.

Overall net worth + 10-15% in last 3 yrs in part due to saving and in part due to real estate equity increase due to tenants paying down my loans and cash flow. That offsets stock market losses as I am 70% invested in real estate and 30% stocks.

I agree with the wood floor votes. I've recently toured a rehabbed school turned into apartments. Part built in 1899 (not a typo) and part in 1929. All the floors are the original wood and look great. I also agree on a no pets policy on wood floor. Good luck!

Joel OwensThanks for your reply. I have not seen the leases yet, but, these are long term tenants 1994-2003 range and have had 3-5 yr leases.

Bill GulleyThanks for your reply. There is a lot of dead space as the rehabber had historical tax credits involved (which don't transfer) and had to keep a lot of the historical character of the buildings. He cleverly got around it by bleeding some of the heat from the apartments into the halls so the tenants heat the halls and they pay their own heating bills. (I don't think they know about that).
The bank that currently owns the paper is very interested in loaning to us so that's not an issue. It is a unique project however that has little comparison in the community. The rehabber did a great job with the classrooms

Sorry, math error. Total rents of the commercial. including the gym = $45,000/yr
Thanks

I need help trying to figure the value of the commercial side of a mixed use property. It is a rehabbed school and I can figure the apartment side, but, I have no experience on how to value the commercial spaces. They are 3 offices rented to a tax preparation business, a psychologist, a religous based family services organization. There is also a preschool and they rent out the gym for weddings, meetings etc. The leases are to run 1-2 yrs more. The tax guy and preschool pay their own gas/electric. The total rents are about $32,000/ yr. (including the last 6 yr average on gym rental).

Marc Faulkner Pinnacle is located in Omaha and the commercial loan officer is Brett Michael. E-mail:[REMOVED]