Most people know me as either a Qualified Intermediary or a Private Real Estate Investor and I am pleased to be thought of as either. However, those of you that know me best, know that more than 70% of my commercial property portfolio spanning North East Florida throughout Southeastern Georgia is composed of Self Storage Facilities and I have been buying them and building them and keeping them all because of the consistent cash flow I have come to rely on. As a personal goal, I have been purchasing, on average, a new facility at least once a quarter but all of these properties have been purchased with my Wife and I as the only owners.
However, as the real estate market has been increasingly active and with my Qualified Intermediary business growing rapidly over the past year, I have been requested, asked, and even pushed towards setting up some of my new purchases as Tenant in Common Properties ("TIC") thereby allowing individuals or business entities to have a fractional ownership in a self storage facility as an option for their replacement property either in part or in whole keeping in mind that the minimum buy in is $250,000, with exceptions being made for certain clients and referral sources.
As such, I am pleased to announce that, we have recently released five new opportunities that can be found on our website Here. Generally, an investor can expect to receive an initial preferred annual gross annual return of around 6.25% return which will be largely offset by their proportionate interest in the depreciation/amortization expense resulting from their fractional ownership. The end result is that most investors realize around 75% of their income being tax free because of such expenses and that, when extrapolated based on their tax rate, typically results in an after tax rate of return which exceeds 10%.
We, and me especially, are so excited by the overwhelming demand but we also recognize that agents and brokers play a huge role in our success and so we always protect their commission for any deals brought to us that result in a funded closing. However, and this is the most exciting part, we have decided for the remaining 3 weeks of May 2017, that we are going to offer any and all licensed real estate agents and brokers a historic commission rate of 10% of the gross sales price of any deals initiated in May 2017 provided they close within 30 calendar days of the original introduction. We must cap the bonus rate of 10% to a total of $5,000,000 in gross sales attributable to any one broker.
However, we always compensate, depending on the particular property, between 5% and 6% of the gross sales price to any brokers or agents that are responsible for bringing the buyer to us and that introduction results in a closed and funded sale. Please check out the opportunities and remember that these products, while are designed to be 1031 exchange compliant, are certainly not limited to 1031 exchange investors. an investor can be any individual, IRA, or company, notwithstanding if they are participating in a 1031 Exchange.
Finally, please note that, while I am still practice as an intermediary, any potential clients that are interested in utilizing our services but also want to purchase our products, we have requested that you either retain @Dave Foster , who is a Bigger Pockets Celebrity or @Bill Exeter as both intermediaries have my respect and both are aware of the partial transition of my business to allow me to focus on my passion, which is commercial real estate, specifically self storage. If you feel strongly about having me be the intermediary, then we will respect that but we do insist that you have a broker represent you in the purchase of our products and we have one or two brokers that have indicated they will help our clients and they are compensated by the specific TIC company in the form of the 5 to 6% broker commission so the representation is free to you and we feel strongly that since it is a sister company of my Qualified Intermediary Company, that you retain representation as it is worth the additional costs to our firm to ensure you are adequately informed about the transaction from someone looking out for your interest.
I will say that with the overwhelming demand and fairly generous broker commissions, we have found that we need more brokers to refer to so if you are interested in receiving our in house referrals for those clients looking to purchase our Self Storage (some retail shopping centers as well) TICS, please contact me so that we can immediately set up a time to speak and ensure you have been brought up to speed on our product and then get you on the referral list. I hope to hear from both buyers and brokers in the very near future as we always welcome brokers and their clients as reflected in our ongoing and generous commission schedule. Check out the website by clicking here!
