All Forum Posts by: Jay London

@Scott Meyers I was in your 3 day course about 8 months ago and I lost the notebook that you provided where I took all my notes. I know you gave us the name of a company or 2 that builds these things and sells them turn key. I just bought my first SS and a small part of it is in a flood plane. I thought I would use the containers in that area. The new county regs require the FFE (Finished Floor Elevation) to be 2' above FP. Way to much dirtwork and then having to pay an engineer to do a new study and all that. I'm thinking I would just drop some containers and go to work. Would you be so kind to let me know of a few companies the turnkey containers. Thank you

@Henry Clark Thank you. I was think the same on a few things but you added ALOT that I didn't think of. I really appreciate your time. If you ever make it to my part of the woods hit me up. Beers are on me. Have a good evening.

@henry clark  Thank you for all the input. This unit is 3 miles from my house so managing it would be no problem. The real estate up front has 5 office spaces in it. Storage office is unit 1, 2 is empty, 3 is a hair salon, for is a security service and 5 is an ambulance service. If I purchased it, I would move my 2 existing companies in to Unit 1 (Jay London Homes & Tri-City Roofing) We could run the storage out of my office. 

There is no more land for developing any more storage units but there is more on the road for add more retail offices. Newcastle is the fastest growing city in OKC metro right now. There are over 1800 residential lots coming online. Yes is it still a little rural but is a huge draw to people because of the school system. There's know where south to go down the I44 corridor. Newcastle will be the next big city on the southside of the metro. I know of 1 new storage facility being built right now. The one south was existing and added more recently. I wished there was more land available on this property. I would love to add boat/RV storage. Its basically impossible to find vacant boat/RV storage anywhere close to Newcastle. I have to drive 15 minutes to store my boat and was lucky to get the space last year. The only one in Newcastle has a 6 month waiting list. 

So what would you be comfortable offering on this property Henry, if you was to make an offer? 

I check out the Chickasha property you mentioned. 

@Callum K. I sent you a PM. I don't know if it went through while I was in the plane.

I've bought and sold some apartment buildings along with several other commercial buildings that I was able to do a value add to, so I used the same principle to underwrite this mini-storage but what they are asking and what the financials are saying are so far apart nothing is making sense. I've spoke with the listing broker and asked him how he came up with the list price and his cap rate and of course he says the market sets the price. It has been under contract that fell through. I'm going to say the buyer backed out after digging into the financials. I've went through Costar for comps and the cap rate for the sold comps are no where near the 5.25% cap they are asking. It appears that the average on past 12 month sales is floating around 8-9% cap. Can someone with more knowledge on mini-storages take a look at the financial sheet and tell me what I'm missing. I don't see where BP will let me attach PDF of the

Financials so if you don't mind I'll have to email or attach it some other way for you to see it. 

To me this thing barley even cash flows (with financing of course) after the 2 year scenario of the pro-forma based on a purchase price on actuals at a 8.5% cap. They are asking $2.8mm and I don't think its work more than $1.5mm as it stands. What am I missing. 

Thanks in advance. 

Jay

@Travis Houck

The main thing I think you need to look for when researching Syndication is how many doors does the "guy sleeping his crap" own?

Is he really experienced in syndication or just selling his coaching. There has been alot get on the band wagon with Syndication coaching. Vet your coach.

@Russell Brazil

Yes if your money went "hard" after your inspection period then you will lose it.

What really sucks is these appraisers now days just take all the time they want and don't give a rat's *** about it. There's nothing we can do about it and they know it. Dodd-Frank gave the appraisers all the power and we have to put up with it. The appraiser cost you the deal. You possibly file a complaint with the appraisal board and see if it gets you anywhere

@Laila Ea I'm in OKC and can probably help you with a hook up for a investor friendly realtor if you haven't already found one. Let me know. I'd be glad to help.

@Greg Kapourellos

I've said it for years. The only thing that is keeping Realtors alive is the MLS. We control the MLS, once we lose that, the need for a realtor will be non-existent. Is that a bad thing? Yes. The majority of the consumers have no knowledge of real estate regardless of thier experience. Time will tell.

@Greg Kapourellos