Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Ed Long

Ed Long has started 11 posts and replied 27 times.

Post: Looking for Real Estate Lawyer to draft a POA (Professional Owners Association)

Ed LongPosted
  • Real Estate Investor
  • Greenville, SC
  • Posts 28
  • Votes 4

Hello,

Looking for a Real Esate Laywer to draft a POA (Professional Owners Association) for a piece of commercial property located in Greenville, SC. We are looking for this to indicate detention pond rights for multiple parcels.

Thanks!


- Ed

Post: Looking for commercial builder in Greenville, SC

Ed LongPosted
  • Real Estate Investor
  • Greenville, SC
  • Posts 28
  • Votes 4

Hello,

I have 6 commercial acres in Greenville.  Looking for a developer to develop the property.   I am ready to start today.  Thank you.

Post: Price per acre or sq. foot of land for ~3 acre parcel for chain

Ed LongPosted
  • Real Estate Investor
  • Greenville, SC
  • Posts 28
  • Votes 4

I know a lot of this is 'it depends'.    

Looking at 5,650 - 11,300 SF Industiral/Flex on ± 3 AC
• Outparcel to Home Depot Shopping Center (across the street), +-400ft road frontage facing HD, backs up to major interstate.

Area is good, land is level, zoned properly and I've seen a lot of BKs across the home depots in my area (for some reason) and was thinking this is a similar setup.  

After searching, I could not find a good reference to determine the % of land cost for a chain like BK to determine if this is a feasible Invesment.

Post: 2Acre Lot, Multi-Family Build?

Ed LongPosted
  • Real Estate Investor
  • Greenville, SC
  • Posts 28
  • Votes 4

Interesting.  This is similar to the time that I realized why folks were buying class B type commercial  at 4% cap rates.  Different economics for them and things like urgent 1031 exchanges and realized that its an area that I don’t want to compete in


On the institutional side I presume you are referring to the money guys ?  The developers that I know that build sub $20mm commercial won’t bother for anything less than about 14% cap. This was a few years ago so that may have come down, but not to the 4% range.    

Post: 2Acre Lot, Multi-Family Build?

Ed LongPosted
  • Real Estate Investor
  • Greenville, SC
  • Posts 28
  • Votes 4

Hello,
I have a 2AC piece of property that is properly zoned and I believe perfect for a multi-unit in Greenville SC. I currently own multi-units but have NEVER BUILT. After speaking with a few local agents/builders, I'm not sure of the 'quality' of information. I'm looking at 1-2 bedroom units with a rent in the $750/mo range. I have some background, conducted enviro studies, know the set backs, retention ponds, city utility connections, spoke with the town planner etc. What I don't have a good feel on is the TOTAL cost of the build from the parking lot / landscaping up - understand it varies on a bunch of factors. All my current math shows that the ROI is not there, yet I see these being built all the time.


I'm looking for some consultation from a neutral third party around total building costs.


Post: Scranton and Wilkes-Barre

Ed LongPosted
  • Real Estate Investor
  • Greenville, SC
  • Posts 28
  • Votes 4

You can cash flow, and you better buy cashflow because you won't get appreciation. I have props in the area.  Hit me up if you want to discuss.

Post: Experience of a Fair Market Valuation at option period

Ed LongPosted
  • Real Estate Investor
  • Greenville, SC
  • Posts 28
  • Votes 4

Hello,

I'm interested in touching base with investors that have been through the option period with a CVS, or similar, where the lease states that the new rent (in the option periods) will be based on Fair Market Value. This seems to have significant risk and weight on the assessment process. Especially because, from my analysis, the leases are often 'front loaded' and they tenant is paying a higher than fair market value for the first X years of the lease. Additionally, in talking with numerous assessors, they do not agree on the methodology to be used in calculating FMV.

Thanks.

Post: Cap Rate - The Real Number

Ed LongPosted
  • Real Estate Investor
  • Greenville, SC
  • Posts 28
  • Votes 4

I've worked with dozens of agents and dozen of investment property owners and their constant misrepresentation of cap rate has lead to this post.  I have YET to see any one of them provide a proper cap rate and just wanted to let the folks at BiggerPockets know that in my experience almost every provided cap rate is wrong. 

Most of the time the seller only includes basic expenses, such as taxes and maybe insurance.  In general they often leave out significant expense items, such as repairs.  I'm amazed at how many properties I've seen that magically require ZERO repairs over many years.

Cap rate is ALL EXPENSES, except loan/finance servicing.  This is everything.  Lawn maintenance,  repairs, utilities, etc.  Another amazing fact is that properties are magically 100% rented 100% of the time.  Another trick is they will use future income numbers.  How many times have I heard "well you could rent this for $X more dollars", sometimes rents may be low, but you should know the rates in your area and know if they are giving you the real numbers or future expectations.  I recently closed a deal where in the due diligence phase the rent rolls were much LESS than what was provided.  Again, it's magic how the rent rolls are never more.

Don't let these people fool you.  I've seen far to many folks stating cap rates that are NOT even close to the true cap rate.  Advising these folks that this is NOT the cap rate is to no avail. 

Be smarter, run a proper CAP rate and stick to your numbers.

Post: Looking for private mortage with 35% down for $200K loan.

Ed LongPosted
  • Real Estate Investor
  • Greenville, SC
  • Posts 28
  • Votes 4

I am looking for a lender to purchase a single family property (appraised at $350K) for an investment. Here are the high level details.

$325K selling price

$5K deposit

$120K cash

Mortgage for $200K. I am looking at a 5 year callable over 20 amortization.  800+ credit score.  Would like to be in the 5-7% interest range.  Please contact me for more details.

Post: FHA OR CONVENTIONAL?

Ed LongPosted
  • Real Estate Investor
  • Greenville, SC
  • Posts 28
  • Votes 4

I've just run through a lot of buyers that were looking to go FHA on a property. Just note that the FHA has some pretty strict standards on the property condition.

http://portal.hud.gov/hudportal/documents/huddoc?i...

I've had a few deals fall through due to this, and I know sellers, in this area, do not particularly like a contract based on FHA financing. FHA requires it to be your primary residence.

That said, the lower down payment is enticing to the borrower and is a valid loan option.