All Forum Posts by: Julia Jones

Hi everyone, I could use BP's advice. My PM charges me crazy fees for everything. For example, the furnace crapped out, and he arranged to have it replaced (which is fine) but also charged me $200 for bringing 2 heaters to my tenants for 3 days. Earlier on, he charged me $220 to have a simple lock replaced. That's on top of the 10% fees. I get it that this is their business but to me this is death by a thousand cuts. Can someone give me a reality check on what I should be expecting in terms of actual PM spend and whether such high prices are within the range of normal? This is in Indianapolis.

Many thanks in advance!

@Lizzie Carver and @Micki M. Thank you both for your thoughtful advice! What I'm hearing is that there could be potentially great potential but that the risk and the initial costs can be super high. The key would be to limit my risk exposure. 

So, then, I see 3 ways to structure my involvement:

1) as a full managing partner -- not ideal, as @Don Konipol says, the risk exposure could be very high

2) as a non-managing partner -- but then I wonder if it doesn't make more sense to simply participate as a private lender

3) As a private lender -- provided that the math works out, of course. 

What are the benefits of being a non-managing partner, instead of simply participating as a lender? Sorry if this is a stupid question but the commercial space is totally new to me -- obviously! :) 

Thank you, all, for all your advice and guidance! 

Julia

@Don Konipol

This is fantastically helpful! Thank you!

@RonaldRohde and @Don Konipol Thank you both for your response. I should have clarified that the idea is to rent the building for a 10-year lease, convert it to offices and then sublease it. I, along with a couple of other investors, would be an investor in the initial set-up, and would then be sharing in the profit. How would such a deal normally be structured? Thinking about the risk, vacancy and liability are two most realistic risks. How can I limit those? Any thing else I need to worry about? Thank you again!

Hello BP community! I'd love your wisdom on the following opportunity: 

An acquaintance approached me to participate in a commercial lease. The idea is they'll get a 10 yr lease on a commercial space, that they'll then renovate into offices and sublease. All of my experience is in the residential market and I'd love your thoughts on how to evaluate this opportunity. 

Aside from the details (e.g. length of lease, expected revenue, expenses etc.), what other questions should I ask? What are the main risks? What is a realistic vacancy rate for such a space? What is the rate of return below which something like this doesn't make sense? I anticipate that there may be multiple investors -- anything to know there on the legal or profit-share? 

Many thanks in advance for your advice!

@Justin Rickson and @Will Gaston -- thank you, both! The thread you shared is super helpful!

Hello, BP! Seeking your collective wisdom: I’m increasingly interested in investing in student housing, and I realize it has its unique challenges and opportunities. Those of you who are familiar with this kind of investing, can you talk to:

* the challenges of managing such properties. Are there property management companies that specialize in student housing?

* are standard vacancy rates 3 months? 

* any unique liability issues? Special insurance requirements? 

* any insights into appreciation of properties located in college towns?

* anything else Thats unique that need to take into consideration?

Thanks much for your thoughts! 

@Account Closed This is a really neat tool. I too am looking at Cleveland and this is a nice visualization of Cleveland neighborhoods. Thanks for sharing!

Thank you @Mitch Messer for the warm welcome, and for your response! I can already see that BP members are eager to help, and I'm looking forward to connecting with others! Your advice is right on! Much appreciated!

Hello, I'm a long time investor in my home area and new to bigger pockets. The forums here are fantastic with so many competent entrepreneurs participating! 

I am starting to look for investment opportunities nationally, and I am wondering, what resources do you use to analyze markets and specific regions? Some realtors produce market reports but I am wondering what other resources you consult on key metrics like median/average prices, rent to own ratios, growth rate, etc.

Many thanks!