All Forum Posts by: James Cerenzie

@Robert Bowser any indication as to the lender's hesitancy? Are they simply non-responsive or did they respond with some specific concerns or 'issues' with funding the deal? There could be many reasons...perhaps they are questioning your lack of experience in RE, something from your personal financial situation, OR maybe they're just a bad/lazy lender. I would certainly get a 2nd opinion if you haven't done so already, ESPECIALLY if the current lending contact is just not being responsive. I'd be happy to give my two cents about the deal if you want to tell me more about it (purchase price, currently occupied or no, # of sq ft, need any Capex, etc.).

I have limited experience but bought a few light industrial buildings in the past. As you know each market is different. Mileage may vary. I've typically done 1 - 2% EMD, with a 4 week due diligence and a 6 to 8 week close depending on financing. Tenant estoppels are invaluable tools for sure. Other than that one tip I have is to make sure you have door keys/codes/garage door openers prior to close.

Bjorik,

There is a facility on the market currently that is for sale but there doesn't appear to be much motivation to sell it given it's current pricing.  So ideally I would find one for sale to buy, but may consider building in the longer-term if I can't find something.  We are open on metropolitan area, so that's helpful.

BP,

How many people out there are currently investing (or considering investing) in 'MINI WAREHOUSES' (500 - 1,000 sq ft over-sized storage units) which have A) power outlets, B) fire suppression equipment, and C) you can use to hang a business license at / conduct business operations?

Personally I see a ton of demand for small spaces for business to utilize for operations, and see this property type as being especially resistant to Real Estate cycles.  I'm considering buying a deal (see below), and would be appreciative for anyone who has been there or done that. 

I'm also thinking about potentially developing a similar complex in the future OR sub-dividing a vacant industrial building (20,000 - 50,000 sq ft) into small spaces.

See below for a DEAL SUMMARY, which is provided only so you can understand more of what I'm asking for feedback on.

- Located in Salt Lake City, UT
- 20,000 sq ft light industrial building, which was purpose-built (in the 70s) for 40 individual units
- Units are all in the 500 - 700 sq ft range
- Cinder block construction and each unit has a rollup and 'man' door
- Building is 100% leased at $1.00 - $1.20 / FOOT, so not too bad for a cinder block building in Utah
- Tenants are able to hang their business license at these locations, and a lot of current tenants are Automotive-related, Tradesmen (woodworking, welders), or similar.  

Just curious as to whether you proceeded with the idea?  I'm thinking of something similar so would be interested to hear the outcome.

Good morning BP,

I am based in Charlotte and have 1031 funds which need to be spent (must CLOSE on a deal before 12/31/2019.  The sales of our properties have already closed, so our funds are sitting and waiting for a deal.

Anyone have a CRE Broker they can recommend in the Charlotte area?

Below is a summary of what my partner and I are looking for in a deal:
- Located within a ~ 2 hour drive of Charlotte
- Price of $1.25 - 3M..possibly could stretch to $3.5M if needed
- Performing asset (no vacant buildings or land)
- Light to medium value add. Need to be able to add (at least) a little value, either through physical improvements, effective management, or both.
- Interested in multi-tenant office, multi-tenant light industrial, multi-family or self storage. We are purposely flexible on property type because we know the other criteria on this list are hard enough to find.

Please let me know if you know of someone who can assist?

Regards,
James

Thanks for the suggestions everyone.  Yes, I do need to work on my network.  I recently moved to NC, so that's one of the reasons I have work to do in this category.  

Michael - thanks for the suggestion and I will focus on reaching out to the 'specialists'

Seth - agreed

Brian - I'm currently heavily invested in residential in St George, so thought it would be good to diversify.  One of the issues there is there's just limited deal flow.  A lot of stuff being built, but very limited opportunities on anything existing.

Hey everyone, I'm looking to buy a Commercial property (likely self storage or light industrial) and I'm interested in hearing suggestions for how to find solid real estate brokers.  You know....those brokers who actually answer the phone, have connections to off-market deals, etc, etc.

Personally I'm looking for a property in NC, SC, TN, or ID, but my question is broader than my current scenario.  Just looking to hear what has worked for you in the past.

Ideas I have thought of so far:

- Networking (my network is limited in the areas I'm interested in buy currently, but I definitely will be focusing on this one moving forward)
- Calling Brokers on other Listings (even if I'm not interested in THAT property)
- Calling top producing brokerages in the area and hope I get connected with a good Broker

Thanks for your help!
James

@Cameron Philgreen as a real estate investor and turo host I can say that it CAN be very lucrative for you.  I think 6 days a month is very doable.  I'd be happy to talk through some of the details of the business model if you're interested.  Also I can point you in the right direction of some great Turo FB groups.

All,

I'm looking for a little assistance on several questions related to financing.

I am approaching the limit of 10 financed properties (under traditional loan programs), and looking for recommendations on how to finance #11.

Consolidation of the portfolio and paying off a mortgage is my last resort, as these are short-term solutions to a larger roadblock. Also I understand private money is an option, but this comes with a rate hike. Ideally I'm looking for a < 5% IR on a 15yr fixed. If 15yr fixed is not viable, I am open to shorter terms, or an ARM.

I have excellent credit, 35-40% Debt to Income (including mortgages), and am buying and holding properties long-term (no flipping). 

Also, I have an LLC and business credit card so obviously would like to eventually start building the credit of the business.

Options I've Already Explored

- several national banks

- MACU and American Family

- Zions Bank

- local mortgage broker in St. George

Thanks for your assistance.

James