All Forum Posts by: Jonathan Clark

I recently rented my 15,000 sq ft warehouse to a multi-state, A credit tenant. It is only a 1 year lease with renewal options because the tenant does contract work for Duke Energy and does not want a long term lease in case their contracts don't get renewed. I have more than 50% equity in the building due to sweat equity and the fact that it is currently financed on a short term from the seller of the building. It cash flows decently even with an 8 year term but I'd like to get about $125k out (75% LTV) and go to a 15 year term. This would still provide a lower payment than I have currently. I have excellent credit and no debt except real estate. Current rent is $3,850, theoretical value is $370k and I owe $150k with 6.5 years left.

1. What type of prospectus or portfolio documentation should I prepare prior to contacting lenders?

2. Where can I find a lender willing to work with me even though the tenant has a "short" term lease?

3. Do I have to have another property / deal identified prior to cashing out and tell the lender where the money will be going? I have several opportunities and would like to just have the money available to move quickly.

Thanks in advance.

Jonathan

I would recommend building the shell and not finishing out the office space until you have a tenant with a signed lease.  Each tenant will need a different % of office to warehouse space and potentially a different level (class A vs Class B) of office.  I'm in a smaller town in SC and it took me 11 months to fill a 15,000 sq ft warehouse just off the interstate. I had lots of interest but everyone needed something slightly different.  I was willing to up fit or change as necessary but nobody wanted to pull the trigger.  Finally got a great tenant but it was a long wait.

At another property, I have "flex space" with much smaller units 1,000 - 2,000 sq ft with basically a roll up door, a walk door and a bathroom.  I have no problem keeping them rented and am looking at adding more units of this type on the same property. 

Hello,

Newbie here - my first post.  

I recently rented my 15,000 sq ft warehouse to a multi-state, A credit tenant. It is only a 1 year lease with renewal options because the tenant does contract work for Duke Energy and does not want a long term lease in case their contracts don't get renewed. I have more than 50% equity in the building due to sweat equity and the fact that it is currently financed on a short term from the seller of the building. It cash flows decently even with an 8 year term but I'd like to get about $125k out (75% LTV) and go to a 15 year term. This would still provide a lower payment than I have currently. I have excellent credit and no debt except real estate. Current rent is $3,850, theoretical value is $370k and I owe $150k with 6.5 years left.

1. What type of prospectus or portfolio documentation should I prepare prior to contacting lenders?

2.  Where can I find a lender willing to work with me even though the tenant has a "short" term lease?

3. Do I have to have another property / deal identified prior to cashing out and tell the lender where the money will be going?  I have several opportunities and would like to just have the money available to move quickly.

Thanks in advance.

Jonathan