All Forum Posts by: Alex Olson

@Erica Letchworth I think it would be worth exploring. Require a large down payment and monthly rent to cover all of your expenses and unexpecteds. Have a good real estate attorney look at it to make sure you have control of the building. Getting 5% down or even 10% down of guaranteed money could be a good risk if the deal falls through. Is the building occupied at all right now?

 Most important thing is finding a reasonable real estate attorney to draft this for you that has experience in doing such. I would recommend a commercial real estate investment brokerage firm for a referral. Build a relationship with them (not just a residential real estate brokerage) and see who they can recommend. 

@Tenisha Walker I am not saying with 100% certainty that the restaurant has little value but the only value that the restaurant may have is either the building it owns (if it owns it) or the equipment in the building. The book of business is not worth much to be honest, unless it is a national brand and or a staple in the community. Even so, if it is a staple, the location will be more important than the business itself. Is it a stand along building or a business in a building?

@Michael Hayes Yes you can use a heloc on a commercial property. Yes, the lender greatly matters. I am not sure what area you are looking in but sounds like you have a good shot at finding a lender pretty easily. May even be able to put as little as 20% down. I would recommend your local bank, even if they can't fund the project, they would know where to turn to. 

@andrew Hyder I have had success with properties that have been on the market for quite some time and are vacant. Also keeping the agreement as simple as possible as a lease purchase option and not cloudy the title. If they are in good locations they are harder to get. If distressed then anything is possible. I have done 3 in the last twelve months on really nice properties in amazing locations. If you want more help on strategy to acquire please pm.

@jerrell Evans I would recommend @brandon Turner 's books on how to manage rental properties and then I would recommend Sam Zell's Am I Being Too Subtle. My suggestion would be to buy at minimum a duplex. Possibly FHA owner occupied if you can. You will not regret it.

@Jim Goebel I think it is dependent on the location and the FSBO owner. If it is in a location that is not all that special, why waste the time. But if the location can't be beat and is a rare opportunity I think it is worth investigating. I also think it is worth speaking directly with the owner that is selling - asking them why they are selling, what commission they might pay if you bring them a buyer and how long they are going to "go it themselves." You might find a gem and an opportunity to make both sides of the commission if it all works out.

@Thomas Kwan You may want to also triple check to make sure the monies within the 401k can be accessed. If it is controlled by an employer, it may not be allowed unless there is an emergency which must be proven. For example, I can not access anything regarding my employer 401k due to employer policy (not the fund manager). 

@Jeff Kehl and @Michael Behrens I am not the expert in syndication or tripple net sales but am confident someone on here can provide really guide advice. Not sure if @Logan Freeman as seen this post but he may be able to jump in or PM him on his strategy and how he approaches syndication on NNN sales. In Kansas City, there is quite a bit of value in office/retail/flex/warehouse space. So packaging these properties into a single deal for a large investment can make a lot of financial sense. So, it is not just NNN on one building but a series of tenants and buildings that may make create the value of the syndicator.

@Paul Paquin similar to what @Sarah Brown says, I would never waive my right to inspect and back out after inspection. If you get an inspeciton, you can see if it is in fact mold and does in fact have a bad roof. Get an estimate. Build those costs into your model and if it still makes sense to do it, you can pull the trigger. If not, you tell the seller that you will not complete the transaction due to the issue and you negotiate the cost down if they are willing. The key is you want to maintain that you want to get a deal done but at the end of the day you need to determine if it financially makes sense.