All Forum Posts by: James Allega

Hey Everyone, I am working through some ideas on structuring a purchase of a commercial office property with Fee simple interest NNN Lease, A rated tenant. Anticipating 30%-40% down payment. Cap rate is 7% with 10 years left on 1st lease. Tenant just invested over $1M in renovation which shows commitment. Rent escalations are in place every 5 years and with two 5 year renewal options. Purchase Price $1,750,000. These are just rough numbers for conversation sake.

I am willing to put about 10% down with my own money so I have skin in the game, but looking for ideas on structuring the other 20%-30% with a high net worth individual who also has purchased similar properties over the years for their day to day business. This investor would be 100% passive. I found the deal and will work it, negotiate...etc. 

My experience is limited to residential SFH rentals and 1st & 2nd mortgage notes. This is an opportunity I am working on in an effort to get another notch on the belt toward my goals of being in the commercial space.

Curious what people think is a fair split? 

looking at properties in Old Brooklyn. Does anyone have any opinions on this area from a long term rental perspective. 

Also, trying to understand how much to budget for water and sewer on a monthly basis for a duplex. 

Trying to determine if cash flow is doable in this area with realistic numbers and regular maintenance costs. 

Any help would be greatly appreciated!

I personally agree that deflation is the issue at hand. I follow the dollar very closely mainly for trading and investing in the markets and I think dollars will be gain value for a little while here. question will be for how long will deflation last. Deflation is scarier than inflation in many cases.

@Alex Janesz 

Thanks! West Side and South is where I will most likely be looking for my first property as well. Just doing some research now to figure out which areas are best. I'm currently looking at Parma, Old Brooklyn, Brooklyn, and Lakewood. My biggest issues with Rocky River and Lakewood I believe will be high taxes eating up cashflow.

Thanks for the warm welcome everybody. Brandon I will definitely check those out!

Thanks James! I'm looking forward to contributing in anyway that I can. Looks like a wealth of knowledge on this forum and some great deals based on some of your recent Marketplace posts that I saw. 

Hey Everyone,

I'm Jim Allega and I just wanted to introduce myself to everyone on this forum. I have lurked here a few times in the past, but only to read a thread or two on a specific subject. Now that I am getting ready to really jump into REI I thought it would be a good idea to finally join. I'll probably be upgrading to Pro shortly as well, because it seems like that may be of even better use to me.

Currently I do not have any experience owning any investment real estate. I own the house I live in, but my wife still makes me pay the rent :) So I am now looking to acquire some houses or preferably smaller apartment buildings where tenants are paying me. I just got married on August 2nd this year, so now that the whole wedding thing is done I decided it would be an ideal time for me to begin focusing on building out my network and getting into some properties, because those girls love to spend money. (Just kidding, shes actually really good with it thank God!) 

I currently am a commercial insurance agent for Dawson Companies in Rocky River, Ohio. I specialize in construction, because construction is a large part of my background and knowledge, but I also have several clients who own and manage commercial apartment buildings and strip malls. So I have some knowledge in this area outside of just my standard REI investment books that i have read.

Rich Dad Poor Dad (Yeah I'm sure you have heard of it once or twice) is the book that changed my way of thinking back when I first read it at the age of 15. Now at 28 years old I am finally ready to put it in action, which I should have done a long time ago. 

I look forward to meeting all of you and hopefully developing some long term friendships from here!