All Forum Posts by: Kristen Daniel

It's more than just myself involved so I'd hate to break away from the group.  Plus we are working with a short deadline with it being a 1031 exchange. I'm working with a business banker right now because I'm hoping to get a line of credit on the building. They said they would look at my offering memorandums and make sure it's a property they think they can lend on. I'll look into the benefits of Loopnet's premium searcher, thanks for the tip.

@Joel Owens 

You bring up many of the things I've been considering. Our Realtor is with Marcus & Millichamp, he's highly qualified. I just want to make sure I'm the one in the drivers seat and not trusting someone else with my money too much. I won't be in the purchasing position for at least 3 more months. I did see a couple of older buildings where the dollar store has been there for 40 years but was in a short option period. I was thinking that might be a good option. I do worry about getting stuck with a building in the middle of nowhere and not being able to sell out of it. I did see a CVS in my price range, I'll keep those in mind. Thanks!

@Account Closed

Jeanette, do you mind sharing how you made contact with your local rehabbers? If I only financed the rehab part how much interest do you think I could expect.

@Greg Scharlemann

@Account Closed

1031 exchange...cash. I'm interested in Family Dollars and Dollars Generals that have been held a while and have already exercised their first option and are in higher populated areas. I'm thinking these are less risk because it shows the tenant wants to stay. I'm nervous about getting a longer lease/newer building in a small populated area because I don't know how the store will do. I don't want to buy something on the hopes that I will sell it later. Cap rates are about 6.5% on newer buildings with a long primary lease and around 7% for a lease that is in an option period (5-7 years). At this point I haven't gotten into all of these details with my Realtor because we're working on the selling side. What do you guys think?

I forgot to ask my Realtor about this. I'd be interested in other people's experiences anyway. I'm curious if anyone has any experience buying a triple net lease building with a franchise tenant in it. I'm looking at cap rates of about 6-6.5% but I'm wondering how negotiable the list price is. Especially on buildings that still have about 10 years left on the lease.

@Dennis Tierney This is what I was thinking. I need to talk to them. https://www.wellsfargo.com/biz/business-credit/rea...

Do you fund all of your own deals? I've been throwing around the idea of trying to fund my own flip in my expensive market or take out cash in a property I'm selling and put less into my new property so I have cash to fund someone else's flip in a less expensive market and make less of a return. I'm thinking of rolling all of my money into this 1031 exchange I'm doing but then that would leave me with no real money for 2-3 years. Decisions, decisions.

You've been very helpful Albert, thank you.

Okay thank you, I'll keep that in mind. I just want to clarify my post. Essentially I would be looking for a commercial line of credit at 40-50% LTV so I could then fund 100% of a flip deal.

@Steve S. Care to educate me on what the requirements are for hard money loans considering I have no experience flipping houses? I'm just curious.