All Forum Posts by: Jay Ingram

@Scott Kinsel in general, my clients pay more fees and higher interest rates on SBA products. Do you have a relationship with a regional bank in TX? It may vary in that market, but I would look at conventional financing for the property and tenant improvements, then do SBA for the actual business entity.

Also, your market may dictate whether development vs renovation is more cost effective.

@Andrew Melvil Both LREI and Alltrade have a lot of experience there. They also have online portals, too

@Blake LaRussa LREI

@Andrew Melvil What asset do you want managed? LREI and Alltrade have good accounting. Any PM will need to be managed.

@Timothy Douglas are you an investor or licensed professional? One of the benefits of working with a broker is they have access to databases, like Catalyst, that do show expired and withdrawn listings. They will do the legwork for you, and that’s one of the reasons they get paid if the deal closes.

@Kal Seirafi I have a few other thoughts.

David Greene talks about building a team. Make sure whoever you talk to is able to connect you with attorneys, property management, and bankers. Community and regional banks are more flexible in general with terms, especially preexisting broker relationships.

I also don’t think it’s a mistake to focus with one broker. They will know everyone in a market and network with who is getting deals done. That’s because there’s more than one way to get paid as a broker, and they will get a referral fee from brokers who can close. If you are talking to a lot of people, that’s a turn off.

Some questions I asked before buying my apartments: Is the broker someone with a personalized focus or corporate mindset? Are they professional in their knowledge, not just likable? Do they know the market and have a team of professionals in place?

@Kal Seirafi as a commercial broker, I have a few thoughts.

1. Don’t ask residential agents for a commercial referral if you choose to go for large multi family deals. This is like asking a personal injury lawyer for an international tax attorney. However, if you are looking at smaller properties, that is not bad.

2. Choose a market and find who dominates that area. For example, Bull Realty is strong in Atlanta. Michael Bull has done over $6 billion and has a designated multi family division. The Kirkland Company is good in Tennessee and other Southeast markets as well.

3. An easy way to find out if a broker has good underwriting skills is to see if they have a designation called CCIM. I am currently earning my designation, and it takes at least two years. You also have to submit a portfolio of closed deals and experience in order to even apply to take the exam once your classes finish.

I am in the Louisville, Kentucky, area and happy to answer any questions if you want to PM me.

Happy hunting!

@Daniel Kelley I use Smartmove for screening but also like Cozy a lot for rent collection

@Anthu Tam make sure you have an experienced broker or commercial investor walk with you through the process. Your underwriting and value add is different between residential and commercial. I’m a commercial agent and happy to answer a question. Just send a pm.

Good luck!

@Amy Heitner I watched that interview,too. That’s the picture we are seeing in commercial sales. No client is thinking of a price decrease and investors think it’s going to rain.

I also think that many investors got over leveraged the last three years and can’t actually move on something unless it’s a deep discount.