All Forum Posts by: Jonathan Wigan

Hands down kvCore is the best CRM I have ever used.  My brokerage, CRT, Realtors uses it and when I was brought on to start the commercial and investment department back in June, I was very wary and frankly, slightly overwhelmed by the system.  I was used to my outlook follow ups and notes etc...  Now I can't imagine being without it I strongly recommend the system.   

Cap rates, cash on cash return, 1% rule, value add, area comps... there are so many ways that investors decide what a "good investment" is. Do all of you put proformas together using some version in an excel spread sheet? I get the RR (rent roll) and the EXP (expenses from the previous year) then plug that info into a formatted excel spread sheet that has been with me for years and is one of the best tools I have. It gives me the cap rate, cash on cash number even the annual depreciation number which is so important for taxes. I can adjust the price and the spread sheet will change all the variables. The expenses I include are generally just taxes and insurance, landscaping/snow removal, janitorial and maintenance. I write all offers contingent upon the seller providing all financials (leases, cap improvements and usually 3 years of tax returns) within a certain amount of days of after acceptance. And as most multifamily sellers are all about "curb" offer only, I make the deal contingent upon a walkthrough of all units within a certain time time after acceptance. What's your method?

Mark, 

It may seem counterintuitive with so many working from home but I am seeing office property on the rise.  There are many businesses that just can't function with employees at home and as some companies are downsizing and other growing in part due to the pandemic as well as just regular business practices, office properties in the 7K to 12K s/f range have been moving quite well.  Especially as many owners are more willing now to put a lease back in place for investors so that there is some cash flow until the owners space can be leased. I have several investors going after that size office building as long as its at least 50% leased.  

My former business partner, Rob Ellis, and I got to a point where about 85% of our investors were from out of state. The cap rates, returns and prices compared to states like California, Nevada, Washington etc... made it a no brainer for a lot of people. They faced the same issues you are discussing. Our method was to send properties to the client and educate them on the different areas in the city; some being lower risk and lower return and others the opposite.  This was back in 2016/17 when areas of Columbus like Olde Towne East and the area around Children's Hospital, for example, were just starting to heat up. We would spend time getting to understand the clients needs and criteria and at the same time  educating them about the city as well as creating proformas for them to review on properties that interested them.  All was done with video conference, power point presentations, emails and phone calls.  Once a client had decided on 2 or 3 properties that they were interested in after review of the numbers etc..., we would walk through the property and take detailed video and pictures.  We would meet the inspector and based on the inspection, photographic documentation and proforma, we would proceed with an offer.  Some clients would fly out for the inspection or when we had honed down the search to 2 or 3 properties but we did many deals where the client would just close from their home state. We were able to recommend property managers and many clients just collected "mailbox money".   Hope this helps.  

Working with a good lender that is familiar with investment properties is critical as is connecting with a real estate professional that is able to analyze property, present real numbers and project possible income.  Most agents should be able to give you a pretty good breakdown on a property just based on a rent roll and expenses from the previous year.  Even just a rent roll is good enough initially as its not hard to estimate the costs of most expenses and things like taxes are public knowledge. Also, your agent should be very familiar with market rents and be able to estimate how much it would cost to increase the rent on a unit as leases turn over and certain improvements can be made.  Being familiar with different areas of the city and what areas are improving more rapidly than others should be part of an agents knowledge base as well. Also, and maybe most importantly, your agent should be a skilled negotiator so as to get you the best deal possible once the numbers have been confirmed, the property has been inspected and all financials associated with the sale of the property have been analyzed.  A good agent should help to educate you on the purchase process as it progresses and make sure you are fully aware of and completely understand of all parts of the deal. It should be a team effort. 

The short answer is yes.  A licensed agent can represent an investor on both residential and commercial transactions. The challenge is usually when it comes to creating a proforma or any kind of projection that can define a cap rate and cash on cash returns for example. Then projecting that info out 5 to 7 years and being informed on what rents and potential areas are more profitable than others just to name a few examples of the knowledge base it takes to help guide an investor. 

As a state capitol with one of the largest colleges in the country, and as a base for many large companies such as JPMorgan Chase, L Brands, Honda, Nationwide and State Farm Insurance just to name a few, Columbus has a tremendous need for multifamily housing fed by a growing population, a low cost of living along with a high ranking as one of the safest cities for families with young children. As the second largest city in the Midwest next only to Chicago, Columbus is and has been consistently delivering some of the best capitalization rates and cash on cash returns for investors during the past several years.

As the winner of the U.S. Department of Transportation's (USDOT) first-ever Smart City Challenge, Columbus was awarded $50 million in grant funding and leveraged that into $500 million of funding. Columbus is set to fully implement most smart city projects by mid-2021 which will increase economic growth, improve quality of life, provide better access to jobs and help encourage and usher in a new level of sustainability.

There are great opportunities in every price range for multifamily investors in Columbus and even with the COVID-19 pandemic, construction on multifamily projects continues to move forward at a rapid pace. In the coming months as the virus is brought more under control with vaccinations and innovations in treatment, the inventors who were able to get into the market now and in the prior year should be set to see some tremendous growth.

Are you looking for Industrial space for your business or for investment? Our commercial real estate team is based out of Central Ohio and can help you locate industrial opportunities within Central Ohio / The Greater Columbus Ohio Real Estate market.

There are several particular types of industrial real estate financing deals we'd love to help you get funded include:

• Warehouse buildings
• Distribution centers
• Heavy industrial buildings
• Light manufacturing buildings
• Data center & telecom buildings
• Flex industrial space
• R&D buildings
• Many more!

If you’re considering an Industrial Property Acquisition, you should consider the Columbus, Ohio market.

If you have any questions or would like to learn more about Columbus Industrial properties, feel free to contact our real estate team on bigger pockets or check out our website at REllisGroup.com

Thanks for reading!

Jonathan Wigan

REllis Group At Key Realty

614-929-2032

[email protected]

www.rellisgroup.com

Are you looking for consistent income with long-term leases?

Are you completing a 1031 exchange and looking to place your money in a NNN lease?

Are you looking for the economic strength of a metropolitan top-20 city with proven job and population growth such as Columbus, OH?

According to Calkain here are five advantages of a triple net lease:

• Reliable Source of Income – Net lease assets tend to have long term leases with predictable cash flow
• No Management Hassles – Avoid management obligations and shift the burden to the tenant
• Tax Deferment – 1031 Exchanges allow you to defer 100% of your capital gains tax
• Stable Investment Holds Value – Long term tenants decrease your risk while your property can appreciate and regular rent bumps help protect you against inflation
• Flexibility – Assets can meet individual goals, that of your partners or large institutions*

Types of NNN properties available in our market:

• Strip centers
• Shopping centers
• Autozone
• Dollar General
• Fast food / Restaurant (Burger King, Chick-Fil-A, Red Robin, Dairy Queen, Taco Bell, McDonalds, KFC Kentucky Fried Chicken, Pizza Hut, Bob Evans, Applebee’s)
• Banks
• Grocery stores
• CVS/ Walgreens
• Starbucks Coffee
• 7-11 Convenience stores
• Retail neighborhood shopping centers
• Advanced Auto Parts
• Family Dollar
• Tractor Supply Company

Our real estate team, The Ellis Group at Key Realty, serves as your point of contact for NNN lease properties for purchase in Columbus / Central Ohio and the surrounding areas.

If you have questions about triple net leasing, owning, managing, selling, or investing in commercial space in Columbus / Central Ohio please reach out, we want to talk with you.

Jonathan Wigan

REllis Group At Key Realty

614-929-2032

[email protected]

www.rellisgroup.com

The numbers are in: Columbus' travel and tourism industry continues to grow in 2017

“This year, occupancy rose by 1.1 percent, the average daily rate increased by 2.6 percent and the revenue per available room rose by 3.7 percent.”

Downtown Columbus Hilton's success points to need for more hotel rooms, convention facilities authority says

"We have surpassed every goal we had put on the table for us," said general manager of the hotel, which employees 250 people.”

"This hotel did not cannibalize other hotels in town"

Headlines like these continue to highlight the amount of opportunities to buy, sell or invest in hospitality real estate in Columbus / Central Ohio. The REllis Group at Key Realty is here to help with your commercial real estate needs related to your hospitality needs - buy, sell, invest, or occupy.

Our real estate team, The REllis Group at Key Realty, is based out of Columbus, Ohio and we are dedicated to providing you with detailed insight and tips that can help you find the right time, place and strategy for a buying a hotel or motel.

If you have questions about buying, selling, or investing in hospitality real estate in Columbus / Central Ohio please reach out, we want to talk with you!

Jonathan Wigan

REllis Group At Key Realty

614-929-2032

[email protected]

www.rellisgroup.com

Sources:

https://www.bizjournals.com/columbus/news/2017/10/26/downtown-hiltons-success-points-to-need-for-more.html

https://www.bizjournals.com/columbus/news/2017/07/19/the-numbers-are-incolumbus-travel-and-tourism.html