All Forum Posts by: Leigh Lommen

I would never invest with him.  He is a brilliant salesman, but think of all the multibillion dollar investors that have better terms.  

Greetings, I am a restaurant franchisee and real estate owner with tons of business and real estate experience EXCEPT in real estate development.  I have a chance to develop a small outparcel and build a strip center with myself as a client,  Utilities are stubbed to the site.  

Inputs I have:  Parcel cost, rough $/sq ft to build; 

Desired outputs: ROI/IRR

Questions on other inputs:

1.  Architectural costs

2.  Additional Site costs

3. Equity needed for parcel and construction in % and how the financing works. (I/O for land with x% equity, etc.)

Thanks.

I know people who have been extremely successful in office investing in class B in secondary or tertiary cities.   One owns 6 million square feet (syndicated with 20 percent in own equity stack) and the other 2 million, sole owner operator.  They are very shrewd about tenants and TI. Returns in high teens to twenties.

I would not invest any money in Cardone Capital.   His fees are exhorbitant in comparison to industry standards.  I have 2 friends that syndicate investments in vehicles, one in office and one in multifamily.  They both charge 8-9 percent preferred, 1 percent in acquisition, 4 percent in property management as a percent of revenues, and 80/20.  They are institutional grade but operate with small balance funds and family offices.

I think this is an area ripe for play.  If you want to work on this together.  Reach out to me.  I have been talking with a ML as a Service firm around here.  There is really no one doing this and would add great value to a fund.