All Forum Posts by: John McKee

@Adam Beaver

Adam

Get the Heloc!  Even if you don’t use it it won’t cost you anything. I have a TD Bank Heloc. 10 year all interest, then converts to a traditional loan after that. My rate is currently 2.75. sometimes I pay it off, sometimes I don’t.  You can dip in and out of this money without any restrictions or penalties. Take advantage of the equity you have and lock it in now while your house is at an all time high.  This one is a no brainer even front a financial planning standpoint to have reserve funds at the ready no matter what life throws at you. 

Hard money lenders are more expensive and you won’t have as much flexibility. 

Which town are you in?

ask for seller financing if you put 20k down and pay them a monthly until an agreed payback period. Also call a local bank and see if they will do partial financing. Otherwise I think you need a partner. 

I look at traffic counts, walk score and surrounding construction projects. Sometimes I will put a call into the local chamber of commerce to get a pulse on the business community

Even a seasoned investor can have analysis paralysis. I think the hardest analysis is in construction/value add just because the costs are like a yo-yo right now with supply and labor shortages. I do believe real estate is more than just numbers. I looked at a NNN lease property yesterday that looked good on paper but the tenant was a new mom and pop coffee shop in an area that was already saturated with other like businesses. As I walked up and down the 1/2 mile row of retail about 15% of stores were unoccupied/closed. This gave me reason to pause. As I sat and watched the flow of foot traffic there were two things I learned. The side of the street where I would buy has more foot traffic than the other. Also the block where it's located on had a Communal vibe that's hard to explain. Popped into the salon next store and found out that the owner just bought his space so I know that he is committed to the community. I plan on making an offer just based on this block. In summary getting a little more perspective will help you make quicker decisions whether it's here at BP, with a broker, or actually getting away from your desk and kicking those tires!

I'm looking at a deal that is 1.8 million for a two level strip.  No competition in the area that I can see, but has 20% vacancy.  It's a high end neighborhood.  It has tenants like state farm, driving school, dentist, real estate office, martial arts studio. I would say 90% of the tenants are office.  Road seems busy, but still gathering traffic count data.  Anyone have experience with these type of small office tenants?

What are you guys seeing these days for listing a property in Commercial?.  3% 6%?  What percentage of deals are actually brought to the table by a buyer's broker and is the commission being split like residential?

I know this is an old post but I will respond anyway as I am looking for similar deals. The most important part of research would be to look at the competition. If there other similar spaces nearby that are having several vacancies then that’s a warning that something is wrong with the local economy.  There are many towns in the United States that are stagnate or declining. Biggest resource to find out what’s going on is to visit your local chamber of commerce. 

I'm a NNN investor located in Fairfax Virginia. I have 11 properties that I own and manage. My question to you is what systems have you put in place that has helped with your growth. I would love a deep dive into the specifics of these systems and how they have benefited your business.

Continue to automate rent payments via ACH.  In fact it will be a requirement as part of all future leases that tenants have to pay this way.  I don't have time to chase/deposit checks

Continue to network with other NNN Lease investors to learn and possibly partner on deals. Possibly syndicate with the right partner. May consider other type of investments to help scale.

Build out my network of brokers to assist with searching for properties

Build out my network of local banks to help with financing

Figure out best accounting software to automate PNL for multiple LLCs.  

Make more offers!

3.8% on a NNN property that was about 900K price that I just purchased. It depends on the seller, but I Always go in low at around 2%.