All Forum Posts by: Jimmy Klein

@Joel Owens

Thanks Joel. I know transfer taxes are now generally paid by the buyer. We sent a LOI and they revised so that we pay for all transfer taxes and title costs. I just wanted to know if this was reasonable or if this was completely wrong. Obviously we will try and negotiate, but will have to settle somewhere.

We are negotiating with seller's counsel on closing costs. They are saying the purchaser pays the premium for the issuance of the title policy, including cost of title search and recordation of title documents. I know its not a huge expense, but I thought the seller typically paid for this?

@Account Closed

Great names. Thanks.

So we are consolidating some of our hotel assets into a new corporation. We really need help picking a good name, we can't think of anything good. We are looking for something cool and not too long. Basically something like "XYZ" Hotels. We need hotels at the end of the name. Some examples which I like are:

Crescent Hotels

Baywood Hotels

It's a hotel, so no leases or tenants. Just want to know if there are any banks or private lenders that could do it.

The seller doesn't care. He made it clear with me and knows about his position. He benefits because he doesn't want to manage and his seller financed cash will yield a moderate interest rate for him.

I have a question. I been negotiating with the owner of a commercial property. It cash flows very well and the owner wants to sell due to his age. I was going to use my own equity, but then he wanted a higher price. So he threw out the idea that he could seller finance the whole equity portion. I was wondering are there any banks out there that would accept this piece as equity or downpayment. The property is $3.7 million. He is willing to seller finance 750k. Are there any conventional/private lenders that would provide the remainder. I am fine with full and personal guaranty. Also I have a very good net worth and specialize in these properties. The property has NOI of $400k, and located near DC in a nice area.

Washington vacancy is still pretty high, its a common misconception that offices there are full. In general, I view office as a flat growth asset class because of the way our businesses operate. Due to technology we can do more with less space and employees. Employees are also able to work remotely now. 

Yes, reuse is good, but take it from someone who has done a office to residential conversion, it certainly isn't a cake walk. The probably is with the piping and creating bathrooms per unit. Most offices only have one mens and one ladies common restroom on each floor. So the piping and planning costs a ton of money. The average cost to reuse relative to building is around 85%. That 15% margin may not seem like much, but it creates a great return on investment for a developer and plus as Joel mentions they get the product out quicker.

How do other investment firms do this. Is it through this structure. I am not talking about large funds, but like regional and local owners with multiple properties. I am talking like $20 million plus in assets. Also aren't LLCs dissolved after some point. If the main member dies, then the LLC seizes to exist as well.

For those of wanting to know, the entire market got hit due the demand generators (large factories) leaving. Too be honest, my friend who has had a pretty good track record in the C and D space found this deal and while I wasn't interested in investing, I did it to throw him a bone and he seemed to have a good grasp on it. Also, I won't be taking a hit personally, since the legal structure was setup that anyone with over 25% or more would provide guarantees. He and another partner are on the hook. I just wanted to see if they would have to watch their backs going forward. Also note documents show that the recourse did not flow through. So they are not concerned about the existing note holder, but only the original holder (bank).