All Forum Posts by: Edward Salazar

Hello tgere everyone, I am looking for Information on a bank that works with industrial/commercial properties.

I own an industrial building that is paid free and clear, it was paid off recently (maybe a year ago), then I conveyed title to a Holding LLC.

the Building appraises 450k and I am looking to get about 200K from it, does anyone know a good bank to work with for this purpose?

property is leased out and producing income, I have several other business and have a good W2 and K1 income from those, aswell as a great (over 700's) credit profile

Any help with some leads to good Bankers will be greatly appreciated

Appreciate the Detailed answer @Janene Tompkins, it was very insightful. Quick question regarding the repairs; they were also paid in cash to handymen and most of the materials were bought through them too and paid in cash as well, Would I be able to deduct these expenses even if I don't have invoices, receipts or contracts? I have a Ledger of every penny going out.

Regarding the 199A, I have an Inactive real estate licence and have purchased a few vacant lots and warehouse buildings in the past 2 years, I am going to research the deduction to see if I qualify. Again, thanks a lot for the awesome response

Thanks @Kurt Jones for the response. The company was set up as an S corporation and I will follow the advice of talking to an attorney

Hello everyone and thanks for any feedback. This year i bought and renovated a few mobile homes in FL under the same LLC and already rented them out. The income is coming in to the LLC's bank account. My questions are: How would I be taxed on this income? What deductions can I use? The money I used to renovate them and acquire them, was mostly from my own cash (no bank or personal checks to prove amounts), could I use this cash as an expense? Since the mobile homes depreciate, can I use the depreciation against the income? and what would be the best way to get the income out from the LLC?

I appreciate any guidance on this matter

@Ash Patel I really appreciate you raining on this parade, its a great way to stay grounded.

So here are a few observations and questions:

• On your first case, I noticed you either kept the old tenants or just discounted the rent to new tenants, maybe causing the cap rate calculation not to work on your favor?
• In both of your cases: How would a new appraiser know what the previous appraiser valued the property for? How would they know that I just bought it for really cheap and want to flip it today for the real value? (for Example: I buy a warehouse for 200k, but it appraises 400k; a year later (or less) I improve the current economical and physical conditions and place it on the market for the 400k it appraised for a year ago, you mean that the new appraiser would not value it for 400k because i bought it for 200k? Or maybe I did not understand it.

@David Benton@Arianne L.@Roy N.@Chris Martin@Scott Matthew C.

@David Benton I Appreciate the great input and will keep the capital gains in mind., as well as contacting the appraiser to see if he could help me out.

@Arianne L. Appreciate the great tips (As always) and smart observations. You are right, the old tenants were in at the time of the appraisal, I will look for that appraisal and use the same Cap Rate with the higher rents. I will keep them in mind.

Do you know if there is a big market for Cap Rate Buyers? My wharehouse is in Kissimmee, FL and the Idea is to try and sell this one and already have my eyes on another piece of property, more specifically an industrial vacant lot ready to be built. The Idea is to start building a new unit while i sell this one. Thanks again for the great input

@Roy N. Thats a great Idea (Solar), I have been looking into this, but everyone wants me to BUY the solar panels + converter, but never heard of a solar farm that would be interested in renting my space for that purpose. Quick question: Florida is a huge state with a lot of empty land, why would someone want to rent my roof for this purpose, instead of either buying some cheap piece of land? and do you know of any companies that might be interested in placing their panels on my roof? Thanks for your help as always Roy.

@Chris Martin The property is in Kissimmee, FL. The leases are currently 5 year leases, with good qualified (personal guarantee and business credit checks). Thanks for the time.

Is there a lot of customers looking for Cap Rate deals?

@Scott Matthew C. Regarding the BPO, I think its a great idea and I am going to post it in BP, pro bono sounds even better.

The property is in Kissimmee, FL. How much of a market is there for Cap Rate deals? Do they normally look for big brand retail rental agreements? Is there an specific lease term that these kind of customers look for? Is there a % cap rate that sounds good ? Say 8,9 or 10% ?

Also spoke to my lender, and there is no Pre-payment penalties or seasoning of any kind. Thanks for your time and help