All Forum Posts by: Jenna W.

New to Delray area , how often is this meet up?

 Agreed, and if you have no experience in running a resort like this, you want to do the following exercise IMO - you want to be a managing member, landlord. You want to be a silent business owner and bring in a resort management company to run the operations to forecasted revenues. 

You will want to own this asset with a PROPERTY COMPANY (PROPCO) LLC. You will want to lease the property to an operating company for market rent (so if you can get FMV reduction in the sale perfect). This can be 3rd party tenant but it seeems more likely you want to share in the Operating Company (OpCo) cash flow if any.

You meet with a resort management company, review the asset and revenue centers and they will forecast what they could produce in terms of revenue in your market. The Property Company leases it the Operating company as an Absolute Net lease, and you collect a rent check monthly and pay the mortgage. 

The appreciation on value, aka the equity in the asset will be owned exclusively by the real estate company and it's owners. It can be used to intercompany loan the operating company as needed, with interest. And, is yours to do with what you want. but don't try to run the resort.

If you have enough properties, it may make sense to insure yourself, and I don't mean like self insure and sit on a bunch of capital.

I worked for a private equity firm, who only had CRE and 50% of it was automotive retail dealerships that they owned and operated. They opened an insurance agency to serve customers home and auto coverage when they nought cars.

I wrote a business plan to use that agency to also serve the private equity firm's assets, and the tenant's insurance as needed in the leases. It was the last time one of my ideas was operationalized with no bump in pay for me, but a huge bump for the guys above.

I took that plan and went to a bigger dealer group that I also knew had CRE holdings and the owner and I opened an insurance agency just for his assets, operations and customers. I am the licensed partner, and he is half owner of the LLC. So the commissions and profit sharing get paid to the agency, and we split the net revenues. He is saving his revenues to open his own property re-insurance company which is another strategy for investment into additional real estate and cash flow but will be like $100k to establish.

If you want to meet and see if us starting an LLC might work for you, I am open to this partnership with other people. As well. It all depends on the building, the risk ect but the last mixed building I did had one CRE space and 6 apartments above it. The commission was $6k for that one property so the owner basically got $3k and I did too. It's not rebating when they own the Agency LLC with you.

Good luck!

Its me, DealershipHRFails on Reddit - I was the one who sent that comprehensive list - here's my new fiverr

https://www.fiverr.com/optimisticjenna

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $234,000
Cash invested: $7,500
Sale price: $387,000

The title says it all - 2 family

What made you interested in investing in this type of deal?

I come from a long line of land ladies, and I was a commercial property manager, then operations director for 13 years.

How did you find this deal and how did you negotiate it?

I was online the second it listed and I knew the neighborhood was on the largest recreational lake in Massachusetts

How did you finance this deal?

FHA

How did you add value to the deal?

Full asking price and 403k financing

What was the outcome?

flipped it when I left town - house hacked /;

Lessons learned? Challenges?

Do all the work upfront, so you don't cheapskate fix over and over

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Bill Murphey at Fairway Mortgage in Auburn, MA

Good Afternoon,

I am in the North East and I am trying to find a document from the GSA that outlines that a building must be office, warehouse non residential for a social security office - of if it just needs to be a majority office space. My boss is considering a large investment in residential units at this office building - and I am trying to do the DD on if it's even possible with a SSA lease through 2030 on site. Any feedback would be helpful - thanks fellow bigger pockets friends!

Michael Jackson is right.

"Personally, I would play hardball. You say he has been a good tenant. I call bull. A good tenant does not break his lease (sublet). I would be PO'd over a sublet. That is my property. They rent it within the agreement of the contract. They are unwilling to work with you even when given a sweetheart deal?! If legally possible, I would get him evicted ASAP."

AND if they were a good tenant, they would understand the situation you are in as well. The reality is, once this sale is over, you will never talk to this tenant again. Nor should engage since he subletted if he ever needs space from you. And then I would withdraw my $100k offer, since its not relevant with the lease violation as is.

Then if you want to be the nice guy, and you were with the $100k offer, you can put it back on the table.

Hello Everyone,

After 12 years with one company I made the jump in the great resignation. I need to renew 22 commercial leases in the Nantucket area, and do not have access to the costar data base, and after a demo, I am not sure we are going to get it. I have scraped the internet for any data I could find on the market, and there's nothing out there. Some of the leases have not had rent increases in 5+ years, and were likely under market rents.... is there anyone willing to pull a co star report for me and send me any info on the FMV for Nantucket retail market so I can impress my new employers and drive home the importance of co star? I would be super appreciative...

Hello,

I own a two family, and upstairs unit and the downstairs unit on a lot of land that runs front to back. Meaning my front face is Lake Street and my backyard faces ABC Street.

When I bought the house my mortgage included a second lot of land that runs the same length next-door, which I have recently confirmed is buildable. The one condition is in the neighborhood since we live on a lake houses are crammed, so on my street since my house faces Lake Street and then there’s a blank lot and the next house faces Lake Street

My middle open lot must face ABC street if I build on it. Normally a freestanding single-family house, would then have the number $.72 ABC Street while my two family would remain 98 LakeSt.

Also, since my two family has been built the neighborhood has been rezoned to residential single-family houses only.

I have plans to build a small two bedroom single family next-door and to move out of my first floor unit and my two family and rent that for market rate the rents from my two family will cover 85% of my mortgage for the single-family house next-door. But I would like to continue to enjoy owner occupied tax status so to do that I understand I am supposed to somehow attach the buildings and instead of this being an address on ABC Street it should then become 98 Lake St. rear unit.

I thought it might be as simple as running wires from building to building with infrastructure for Wi-Fi or something-but I’m trying to find out what is the minimal way to attach two units to accomplish this?

 however to continue to enjoy 

which software did you go with?