All Forum Posts by: Jade S.

Yup...we require a deposit equivalent to one month of the rent the tenant will pay during the *last* year of a lease term (unless it’s a one year term only).  The risk has been pretty low for sure, but you never know.

It’s also on my “to read” list.  I noticed that Chad Griffiths had discussed this as one of his recommended reads as well on a recent YouTube post, along with some other books related to industrial buildings.

@Cole Bigbee Great little diagram on industrial building “bones”! I also like to skim over the commercial forum looking for other like minded industrial/warehouse/flex building investors.  

This acquisition is intended to leverage financing from the regional bank that financed the other commercial properties my LLC holds, so the appraisal (and timing of the report) will be important. But my concern is we will be running *very* close to the proposed close date before this falls into line based on some of the feedback I've been hearing lately. But we will certainly entertain requesting an extension on the close from the seller if necessary.

Hey Folks,

     Just wondering what recent commercial deal buyers are seeing out there with title exam and appraisal timeframes.  I’ve got a contract on an off-market deal on a flex industrial building with a 60 day time to close (45 day due diligence).  However, I am a bit worried about title exam & appraisal timelines, and the potential for it to impact the close after talking with my banker and real estate attorney.  My expectation is that we will need to potentially push the close back as it sounds like third party reports have been a real issue lately, but the seller has been fairly flexible on things thus far.  Thanks.

Hey Ron,

I haven't looked at Dallas previously, but I would be curious about your opinion on how much spec building is happening in that DFW metro area. The areas I have primarily stuck to have been east central Georgia, as well as the Upstate of South Carolina, as both are growing areas, closer to home, and it has allowed me to be "boots on the ground". We have had very little spec building of new flex industrial assets, and there are a lot of local and regional businesses who seek these out (both as tenants and owner occupants). I agree with you on how expensive properties have gotten in recent years, and I'm now seeing outside investors enter both of my main markets searching for all kinds of industrial assets. I'm slowly moving out of my SFH rentals and am aiming to get into more industrial commercial opportunities as they avail themselves (either directly owned or partner).

My preference is industrial, and flex industrial demised into two or more spaces specifically, as the inventory of decent Class A and B properties is in lower supply.  But holy smokes it has gotten challenging to find new properties in my areas of interest in which to invest due to high competition nowadays (both investors and owner occupants are pursuing these properties).

The cash flow is absolutely fantastic, as are the net lease terms.  But have sufficient capital reserves in the event of vacancies or tenant improvements!

My LLC holds a two story, Class B suburban office asset that is 7500 sq feet in a growing area (upstate of SC), and it actually held firm during the worst of the lockdowns last year due to COVID-19. The building is fully occupied with five separate tenants, ranging from a solo employed tenant to a larger 6-employee business.

I would evaluate the demand in that area to see how long vacancies take to fill.  If those local vacancies have persisted due to a high number of office spaces for lease, I would certainly be cautious as you may have to carry that note for a while (and assuming you can get a purchase price that makes sense).  Also, if the area is undergoing growth, that could certainly be a factor to consider as massive growth at military bases can also portend third party contractors/companies that will support that base’s mission.  But are there other economic drivers locally?