All Forum Posts by: Gabe Sirkin

I'm looking for a high net worth individual as an LP to personally guarantee a NNN Retail Lease for a national quick lube franchise.

They would not have to do a thing, and would get ownership in either the real estate and/or the business for that signature. 

My real estate developer partners are NOT in operations and will not personally guarantee the lease. 

My operating partner does not have a high enough net worth for my developers to move forward.

Hey BP!

I want to convert an old mechanic shop into one huge apartment with a loft and one studio. Please see images.

Clean environmentals (Phase 1)

Zoned for multi family

All masonry, with 3 garage doors.

Has anyone worked on a project like this?

Would love to hear the good, the bad, the ugly?

What am I getting my self into?

Any before and after photos?

Suggestions, comments, tips?

Need some help with how to finance this deal with minimum out of pocket as possible! Currently set up as vacant commercial property, needs full gut rehab, convert into 3 unit, owner occupied property. Numbers fully check out. 

I finally found my dream property after looking for years, and finally ready for the investment.  An old truck garage with an office. I want to live in the back garage, and convert the two story office in the front into Two 1BR units. It's zoned for multi-family, so no issues there. 

From my understanding, a 203k loan won't work because the existing use is commercial, even though renovations and purchase will be under the loan limit. 

I have a hard money guy that would do 75% acquisition + 100% rehab, but how would I refinance them out as an owner occupant? I would definitely want to pull as much of the 25% out as possible. 

So what are my options? I'd obviously like to avoid the hard money route if possible. I would like to take advantage of owner occupant and first time home buyer. Good credit and good income. 

Any other suggestions?

Purchase $250,000

Rennovation $300,000

ARV $900,000

Any help or thoughts would be extremely appreciated! Let’s treat this pre Covid for all intents and purposhe’s.

The developer put the ball in my court to come back to him with a proposal. 

The plan has always been that I would get a piece of the profits for bringing him the deal. I would get a percentage of the GP level returns. He always said it would be very fair deal and he will take care of me. I do trust him very much, however since this is my first, what would be considered fair? 5-15-20-30%. I would also be taking some fees such as acquisition fee and potentially some of development fee (if we decide to add one). 

• I found the deal
• I tied up the contract
• I performed some pre-closing due diligence (about $15,000)
• I will project manage, bid out the deal, work with architects, GC’s, engineers, etc.
• Numerous meetings with contractors and architects to date

• Investor will put up ALL equity required to buy the land
• We will raise additional equity for renovation 50-50. 
• Sign on to the debt
• Provide development expertise 

So what do you think would be the correct approach? If need be I can help raise equity on the purchase as well, if that simplifies everything. 

I currently have two commercial property’s under contract that I’m looking to develop. I have the property's at about  50% of market value(10 comps to support this). I had development partner who was going to close in cash, but backed out over due to other projects taking priority. 

I’m worried I won’t find another development partner prior to needing to closing.

I know the value of the land, how can I just close on it as is? I’ve figured a bridge loan could give me about 1-1.5 years to find a new partner without losing the site.

Who can help me this? I’m looking to have AS little of down payment as possible. The loan will instantly give you at least 50% equity in property. 

looking for some guidance!!! Thanks

I have a deal under contract for SIGNIFICANTLY under market value. How can I finance this with little to no money out of pocket?

Here’s the basics:

I have a piece of land under contract. 

I have an investor (LP) who has all the equity and access to debt.

I have an experienced condo developer (GP) who loves the site and wants to build on it, once we close on the land and vest it as equity in the deal

Where do I fall in? I found the site, tied it up, completed a phase 1, brought the parties together (and could help raise money, help with entitlement, sweat equity, etc).

 I do need the money from the investor, and the construction experience from the developer.

We have arranged a 10% preferred return to LP then split profit 30% GP 70% LP. The LP offered me 20% of whatever the LP gets.

is this a fair structure? I’ve never done a deal like this, and I’ve talked to two lawyers who both are over complicating it. The investor is a good family friend, so he is looking out for my interest. Problem is I would never in a million years know a good deal from a bad deal.

@Charlie MacPherson

That is correct, I did not add a contingency that the unit needs to be delivered vacant as I was under the impression it would be month to month.

I can get my full deposit back because of this, and I went through the contract and it absolutely was a breach.

“Seller will not enter into any new leases or extensions without written consent by buyer”

So to get reimbursed for appraisals inspections etc, I would have to go to small claims court?