All Forum Posts by: Jim Stout

Anyone have a form LOI for mortgage lending they can share? I'm looking to lend on a deal, and they don't have an LOI outlining the terms of the deal that can be signed before money is wired to the closing agents escrow account. I prefer to sign an LOI with the Mortgage and Note attached as an exhibit before I wire any funds. This is my first trip lending on a deal, but I've run plenty of corporate A&D transactions at work and this was normal course of business.

Any recommendations for free open source CRM software to support real estate sales and investing?

@Don Konipol thanks for the insight, I’m just learning about Syndication, because it seems like a possibility for this venture. I certainly don’t have a track record of experience in this particular area since I’ve spent the last 11 years in the corporate world negotiating oil and gas deals.

@Bill Snyder good point. I imagine any buyer would at least want a ROFR on the land if you decide to sell. Including a purchase option would give a buyer some comfort that the land can’t be sold out from under them and allow a lower cost of entry into the storage biz cash flow. Holding the land long term holds its benefits for the storage developers because these facilities can be located in growing areas where the land has potential for high appreciation.

@Michael Wagner thanks I will check it out. I’ll definitely need some guidance on this journey!

@Michael Wagner definitely a consideration, don’t want to scare off buyers, especially if it’s simpler and easier to just cash out and move to the next project.

@Thomas Jackson the idea is to take the upside delta between the sale price and the preferred return for the investors, then also maintain a stream of passive income for the Principals. Rinse and repeat until the Principals have a suitable stream of retirement income. I’m not married to the idea, just not familiar with the standard way of working these deals.

I’m considering starting a Self Storage business to find locations, build and flip Storage Facilities. In my mind the 2 or 3 Principals of the company would source the projects, raise money on a project basis, manage development and operations through lease up, then flip the cash flowing facilities to another investor. The original investors would get payout based in on a preferred return when the facility sells and the Principals would keep the land and receive rent from the new owners under a long term lease. My question is, does this seem like a feasible business model that leaves enough value to go around and have willing investors and buyers on both ends?