All Forum Posts by: Joshua Leite

It should be able to be underwritten as another revenue stream just like a lease in the commercial space. I've located 3 billboards on PCH in Huntington. 2 have vacant land on the lot and 1 has a small apartment building. I would recommend a smaller lender as the loan wouldn't be that large for a commercial lender.

Paris,

In my experience the buyer's agent commission is still paid for by the seller, not out of pocket by the buyer. Now if you weren't using an agent and were able to negotiate a lower sales price because of commission savings that would be another caveat but my experience is commissions paid by seller.

I'm confused - if you're license is inactive then you couldn't act as an agent in my non-legal opinion... also as a buyer you typically wouldn't pay commission. The commissions would be paid by the seller usually.

Originally posted by @Martin Z.:

I would personally use the AIR agreement, it's fair, i wouldn't call it pro landlord. They charge for the lease each time you print.  checkout their site.

 Agreed, you purchase it and you can add on addendums for anything additional such as options to renew or rent adjustments. If you end up with a public company or a larger company they will most likely want a specific lease crafted for the space.

Originally posted by @Martin Z.:

"If I am the landlord taking a risk on a weak tenant then I am sure not going to give TI and all this leasing commission to the broker right away"

Not sure about other markets, but try calling up 10 commercial brokers in LA and see which one would comply with delayed commissions.

 Especially for someone the broker doesn't have a long term relationship with already.

Hi Conor,

It doesn't look like you've gotten too much traction here but these would be my recommendations:

-Regarding if the land can be used to put prefab or mobile homes on the space - Contact a land use attorney. They would specialize in current zoning, items necessary to entitle land if necessary, etc. Entitling land can be a long, costly process and if that is needed I would recommend finding a local developer that is in another aspect of RE (such as mixed use or retail) and pick their brain about the entitlement process. Alternatively Urban Land Institute (ULI) has a lot of great reading resources to learn the development process

-Bringing utilities onto a property. Contact the local utility providers, they would be the contacts to provide costs to bring the electricity or water to the property line (you would need contractors to bring it to the buildings). The utility providers won't do all of the engineering work or prep work for free so expect an advance deposit or fee if you do look into this.

Hope that points you in the right direction.

Josh

Rina,

What Joel and Steven are saying is correct if you are looking to depreciate aspects of the property on a less than 39 year basis. A cost segregation analysis will look at all of the components of the building and break out which items can be depreciated over 5,7, 15 or 39 years depending on their IRS classifications. As Steven said there are firms out there (such as Moss Adams, Cohn Reznick, etc) that have engineering arms that can complete a cost segregation analysis as well as a benefit analysis to see what the estimated tax savings could be using a cost segregation to shorten the depreciation periods.

Josh

Frank,

This is not legal advice and should not be considered as such. I suggest you consult a real estate attorney.

That being said I have worked in commercial property management for the past 4+ years in office and industrial. Along with that I recently attained my broker's license for CA. In my opinion (again not a lawyer, not legal advice) the employee nor the company would need a broker's license to manage property that is owned by the LLC/company.

The CA code would be found here:

http://www.leginfo.ca.gov/cgi-bin/displaycode?sect...

If I were to look at it I might look at sections 10131 and 10133.

No legal advice given, just my opinion - I again suggest you consult an attorney and read the language for yourself.

Adam,

It really would depend on the property/project. I would recommend finding some local players in the space you think this commercial project fits or would fit as a redevelopment - ie. is this currently an apartment complex? Who are the local apartment operators/investors? - Reach out to them. For redevelopment, what is zoned in this area? Who builds for that zoning in your area? - Reach out to them.

It seems less like you are treading in wholesale territory as much as you are treading in real estate broker activity as I read your situation as you acting as a listing agent of sorts for the seller.

Josh

Bill,

What size (units) are you guys looking for at this point? Conner may have a few contacts in the multi-family space given his company.

Josh