All Forum Posts by: Jimmy Klein

Asking price is $1 million. NOI is $75,000. I don't mind paying a 7.5% cap given the leases are long term and its next to a Walmart. As far as downpayment, I am thinking 25% down. I wouldn't even mind do a smaller downpayment and having the lender sweep excess cash to quickly pay down debt. The issue is that I would really prefer to get non-recourse. It's just that the deal is too small for that.

Actually, they are not mom and pop, they are just not large brands. One is a federal credit union. The other two are wing stop and great clips, they are franchises. Its located in a midsize town in South Carolina. I am really looking for a 9% cap rate. I know its tough on a new build, but may take a lower one on this since the lease for two of the units extend out until 2024.

I need some help figuring out the appropriate cap rate on a three unit retail strip center. It is right next to a Walmart in a small town. It was built in 2013. None of the tenants are major retailers. They are asking 7.5%. I have feeling thats still low, thoughts from those with experience on this.

I applied for a few hard money loans since commercial banks are tougher to deal with. Essentially am looking at a hotel purchase. The hotel is worth $6. We are seeking a loan of $4.2 million (70%) and putting down $1.8 million. The issue is the equity is coming from investors and not me. I don't have the personal financials to get approved through a commercial bank. Anyways my assumption was that hard money loans were non-recourse and didn't require much personal information. I been applying to some reputable firms and they seem to ask for a ton of documents, equivalent to that of commercial banks.

So I have a ton of friends/family that are seeking commercial mortgages. Many of them have significant experience and strong personal financials. They are asking me to seek lenders for them. Anyone know how I can charge referral fees to lenders by giving them business? I don't need to be certified, right? What's a typical fee, percentagewise? Anyone know any reputable lenders that offer referral fees for giving them business?

Its typical to require renters insurance. Most landlords and large MF properties will not less you lease without insurance.

As others mentioned, while these people list properties on the market, they are in no rush and could care less. Don't get emotional about it, let them do as they wish and make an offer your comfortable with. If they say No, go somewhere else.

I can tell you write now St. Louis cap rates will be very high. It will definately be higher than the average given the market there. NYC is less than 5%, since most MF is always a 100% occupied. However, in regards to determining it, appraisers are the best, but they will charge you for it. If you have contacts at a local bank, they can probably give you a good idea since they probably have financed something there.

Its in Gaithersburg

We are aggressively looking for Off-Market Hotels in the Mid-Atlantic. It has to be limited service and our goal is to acquire in Maryland. We are also looking at Northern Virginia and suburbs of Maryland. If the cap rate and gross revenue multipliers are sufficient for the market, we will consider it.