All Forum Posts by: Joseph Gozlan

@Joshua Austin We buy/invest/broker industrial NNN as well.

Happy to jump on a zoom call to share ideas and strategies. 

Here's a unpopular opinion: NNN industrial or small retail strip. Safer in the short term, WAY less management intensive than MF and there are some really good opportunities out there these days.

Here are a couple of strong commercial women/leaders I've had the pleasure of meeting and taking with:

https://www.facebook.com/meetu...

https://www.facebook.com/maure...

So your underwriting is based on 100% occupancy? These things are usually at 60-70% occupancy depending on the demand in the area.

@Henry Clark put the commercial land up front for sale, fund some of the construction before it's even finished. 

This is a personal pet peeve of mine. The only time you should use "off market" to describe a property is when a buyer is talking to an owner directly. 

If there's a broker, wholesaler, bird-dog or any kind of intermediary between the two then it's "pre-market" or "limited marketing" property. 

Sorry, couldn't resist it :-D

@Taylor Witt the most critical thing I'd try to figure out is how long have these two spaces been vacant. A small rural town could mean it takes years to fill up a space and while 10% might sound great for the current numbers, lose 2 tenants and you're under water. 

Make sure to stress-test your underwriting at lower vacancy to figure out where's your break-even point.  

@Ash Patel I would really recommend changing the approach from "if you build it they will come" to "who do I want to cater to and what do they need".

As @Ronald Rohde and @Henry Clark pointed out, each tenant type will have an ideal size and once you figure out who is that ideal tenant for YOU then the ideal size will be obvious. 

@Randy Krock Co-Star and CRExi both have subscriptions that will give you relatively accurate data on ownership and contact details. 

You can also partner with a broker to help you find what you're looking for. 

@Kyle Curtin The seller is not the one you are worried about, it's the broker. Brokers like @Brian J Allen will "black list" you if you re-traded on a deal they represented the seller.  

Now here is the reality of things:

1) In a HOT market, Brian is right, sellers and seller brokers have SO many options that a buyer that's trying to re-trade is not worth their time in the future. This is also the same reason why "hard money day one" offers came about.

2) That said, as the market cools, all of these brokers will have to change their attitude or they will lose potential buyers for their listing. 

3) Personally, I believe that Re-trade should ONLY be limited to things you could not see during your initial tour/visit. Don't come and try to re-trade because the building needs new paint, you should have seen that and account for that before making an offer. If the ACs are on the ground, same. But if you found serious plumbing issues under the building during Due Diligence, then that's a legit reason to re-trade.  Common sense is very important at this point. If you're buying a $20M property, don't waste everyone's time over a $20K issue you might have found. Stick to material items otherwise you will back on the black list and this time for a good reason!

4) Another reason why we started seeing a lot more re-trading going on recently is interest rates. The Fed has been moving the target so fast that if you got under contract in October 25th trying to close before year end, you will see 2 rate hikes before you get to rate-lock (yes, I'm including the one that will happen next week). This caused many buyers get to a point where they had to re-trade or walk away from the deal. The sellers had to "eat" those re-trades in most cases because walking away meant the next guy still has to live with the new interest rate in the market.