All Forum Posts by: Juan Aguirre

 Hey guys thank you for all of the feedback, I think Matt has has helped me find a good balance between RE and increasing my income. I am in a phase of my life where I desire a higher income JOB to make investing more accessible due to my finances. I understand that RE is a slow start, im assuming im asking for too much too soon, but I am a believer of manifesting what you want. I have goal of accomplishing the stack method thanks to Brandon Turners book, so hopefully I can get a 4 flex in the next year. This will take time for prospecting a potential property and seller, and also creative financing. 

Hey BP fam, I am fairly new to Real Estate Investing, I own 1 investment property which was a duplex househack. I am in the process of leasing out my side of the property since im about to hit 1 year of living there. My current dilema is the feeling of not knowing what to do next or how to get to my next investment property. Besides saving up another 30k-40k im not sure how to attain the next property. Ive looked into creative alternatives and I haven’t found a good deal yet. My mindset shifted into focusing on my income this year, since the last few years I was all in on Real Estate and educating myself on the subject. Has anyone been in this position or have any recommendations if I should focus on my career and increase income while doing that, or potentially getting a scalable side hustle. My end goal is to have enough large multifamily investments to be a full time investor, so I am trying to work backwards but its been difficult without guidance or mentorship. I am attending events to network in the hopes of finding a resolution, but I hope you guys can give out some wisdom if you have been here before. Thank y’all!

 Hey John, that is great input! I hadn't thought about reaching out to the leasing agent across the street. The only reason I wouldn't persue converting it into retail right away is because of my budget. Im sure I can get higher rents and faster tenants if I go that route but I need to do more due diligence on how much this would cost me. I want to get into the property for as little as possible and stabilized it first and then start looking at better options down the road. Let me know what you think!

 Hey Scott, thanks for the tips. I currently have a 50k budget for everything you mentioned and it seems like I might need 10k-20k more to feel comfortable. As far as the refinance portion of the deal I ran the numbers with current rates and they still work properly, hopefully the rates decrease and my potential profits take a positive hit. As far as the TIs I would consider giving the tenant an allowance of 10k-20k and or a discounted rent or both in order to lock in a strong lease and feel safe about the refinancing portion in 5 years. How would you handle the negotiation, would you outsource it or try to handle it yourself as a first time office space investor?

 Hey Scott, I completely agree on the potential of creating something new! There is new retail development with retaurants coming in 2024 so I would look into it further down the road. Currently I have a 50k budget for Down payment, closing costs, and reserves, so I wouldn't be able to make big alterations just yet. It was previously a pet salon, and the office is built out perfect for a medical tenant, but can be easily converted into an insurance firm or dental office as well. It is in a very visible area and there's a huge amount of traffic on this intersection. Should I outsource the leasing since its my first time working with them or try to negotiate it myself?

I am currently in contract on this office building. It was arranged on a 5 year interest only, seller financed, with a balloon payment at the end of the 5 years. This is my first office building, and I see tremendous upside on the property due to its location. The property is vacant and is fit for 1 tenant and can be converted to 2 (it is a 3,000 sqft building and has over 30 parking spaces). It is in a corner lot on a very busy Main Street. There is new retail development directly across the street from the subject property that has been approved by the city and construction starts October 2023. This is my first venture into office space and would love for the community to look over my numbers and to see if passes the smell test and what pitfalls I should look out for. 

Purchase Price- 360,000

Down Payment- 30,000

Interest- 5.7%

Interest fee- $90,837 and $1,567/m

Balloon Payment in 5 years- $330,000

Total paid for property- $450,837

Total  Fees (Interest, Taxes, Insurance)- $28,608 and $2,384/m

Income at $15/sqft (very conservative in my market)- $45,000 and $3,750/m

Profits- $16,392 and $1,366/m

NOI- $29,500

The property is currently vacant and it is a 1 tenant office building. I understand the risk that comes with that, and I feel that the numbers and the upside of the deal make up for it. Office space tends to get leased out on average 3-6 months in my market. Also the interior of the property needs a lot of updating, What has been your experience with Tenant Improvement? I expect my tenant to do the updating themselves in return I would give them a couple months of free or discounted rent. My exit strategy would be to refinance and pay off the ballon payment, or sell the property depending on what the returns look like. 

Thank you for your input BP I am excited on what is to come and I will keep you guys updated through this journey!

 Hey Bruce, if I go through a bank I am looking at down payment of upwards of 80k, so seller financed is my preference because of the low up front cost of attaining the property. It was previously leased out to a single tenant. This has a two tenant layout and was previously leased out for $2,500/m for both sides. The parking lot has plenty of space (20+), the roof needs replacing which we are discussing who will take that hit, interior needs work, and HVAC is good. In this market everything similar is leased out for $15/sqft+. My intentions are to get two tenants and lease it out for a conservative $14/sqft which will create enough equity to refinance out and pay off the balloon payment in 5 years. 

It is in a great corner location with a ton of traffic around it. This upcoming recession does put a negative factor into us being able to lease it. This is also good leverage for us, and that is the reason why the owner is willing to seller finance. 

 Hey Greg, in the Grand Prairie Texas market most retails properties have been leased out in a 6 week period on an average basis. The property does have some differed maintenance and will need some work. I am getting my contracted out there to give a good idea on what is needed. Im looking to start on renovations and have the property leased out all within 3 months. I am also bringing in a capital partner to cover those holding costs, and the construction budget. 

I have a potential seller financed opportunity. I am currently a househacker of a duplex and currently this is my first and only property. I was able to reach out to an owner and build report about his commercial Office Property.

I drove by this commercial property every day and it kept catching my eye. It was the resemblance of a tall grass, old paint job, value add opportunity of a residential SFH. I am very well educated on small multi family, and residential properties, so this fits the traditional condition requirement for a SFH or residential property that represents an absent owner that would entertain the idea of selling their property.

This property is described as an office building on MLS, but was rented out to a retail tenant, it is currently off market and I have direct contact with the owner. This would be my first venture in both commercial, and office space, so im a bit uncertain and anxious. He was previously renting out the 3,000 sqft property for $10/sqft. The owners are willing to sell to me on seller finance with interest only payments for 5 years. This is the deal let me now what you guys think of it, and if it's worth the investment. Let me know if i have missed anything or have skipped over anything. Thanks in advance!!!

Location- Grand Prairie

Purchase Price- $330k

Down Payment - $20k

Interest-  6%

Term - 5 years

Interest only payment- $1,560/m or $18,720. 

Potential Rents- $3,750/m or $45,000

Insurance and taxes- $833\m or $10,000

Total Payment of property-$421k

Im planning on holding the property , until the 5th year. I would then refinance and pay off the ballon payment. 

I am also looking into bringing a 50% equity and cash flow partner. Would this be attractive enough of a deal for investors. Thank you for all feedback. This is my first seller financed deal. 

Hey BP, im looking to meet people who are just as motivated and determined to achieve financial freedom through real estate investing as me. I’m sure I am not the only one that struggles to keep a high level of motivation when you don't have a circle of investors around you.  I want to create a group for people to team up and take down some commercial real estate. I know that with other like minded people there is no limit to what we can achieve. We can all use an accountability partner with the same values as one another. I currently live in Dallas, TX but we can schedule an Skype meeting or phone call. Feel free to reach out to me!!!