All Forum Posts by: James Rey

Kenneth, let me know if I can help. We have quite a few mobile home parks.

Hi Michael.  Text me your email and I’ll add you to the distribution list for the Meetup.  Also if you need help with anything feel free to reach out.

James

James Rey

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@Aurelia Weems I agree with @Wayne Brooks. If you have had no back up offers I’d rather have a bird in the hand but definitely get paid for any more extensions! At least you’ll be getting paid. Not sure you can keep the earnest deposit money till your current extension ends.

@Eddie Sorrell. You say you are going to list it soon. If so, get with the commercial real estate broker and ask for some help. Or if you are going to list it yourself ask someone at a local REIA that does commercial. I do multiunit and not retail but residential and multiunit are completely different animals in pricing them and evaluating them so I suspect residential and retail are different as well. I'd hate to get stuck with a tenant in a commercial space that I can't evict quickly because I didn't use a commercial lease.

There are a ton of real estate meetups in the Baltimore Washington area but all seem to be focused on single family for the most part. A year and a half ago we decided to fill the need and started the Meetup, Commercial Proven Profits in Columbia/Elkridge MD. We have a little under 500 members and usually get 40-50 people at our meetings representing about 6000 units to date. If anyone local is looking for one feel free to stop by. You can find us on meetup.com. If anyone out there is starting their own multi family Meetup and needs help please just let me know. Happy to help.

@Dan Peebles. Something to look at going forward are reversion cap rates. For the last several years the market has been so hot that everyone is a hero. I see a lot of underwriting with reversion cap rates of 1/2 to 1 point over current for when they go to sell in 5 years. Reversion is always an educated guess but I suspect difference in cap rates in 5 years will be more than a point and a lot of syndicator’s estimates of back end returns are going to have been severely overvalued.

@Dean Taylor I agree with all that has been said. Plus, there is a lot less pressure to do a deal because you have to( no other income) vs it being a good deal.

@Steven Greenspan Steve, I’ve been a syndicator for a little while. If I was on your end I’d get some referrals and talk to those sponsors. There are some great ones out there but I’ve also heard some horror stories. Plus educate yourself on basic Multifamily by taking a course. There are several online that are pretty good. You’ll probably have to spend 1-5k to do the course but if it keeps you from getting in a deal that can hurt you it is money well spent. PM me if you want some suggestions.

@Zachary Taylor I agree with Theo. I’d try to build a basic one so you understand where the numbers come from. Then if you want you can either upgrade yours as you go or buy one online that is more technical. Michael Blank has one online for I think $100? It is bit of an eye chart and some of it is a little convoluted but when you get to that level you’ll be able to customize it to your needs. Hope that helps.

@Caleb Glenn. I agree. We have several parks and if POH we do lease options with down payments to try to convert all our maintenance just to common areas. You get the best of both worlds that way.