All Forum Posts by: Matthew King

@John L.  In my experience, Entity transfers will deter most municipalities from a reassessment in RE taxes.  However, I am seeing more municipalities / school boards annually review larger properties (>$1mm) titles for any changes and will reassess based on what they dig up.  It all depends on the city / school board and its aggressiveness in Northeast Ohio.  

I have yet to work with a lender that has successfully made a loan on a member stock sale transaction less than $10mm.  However, I am working on a transaction now that the lender is willing to move forward using this purchasing method.  I will be happy to post the results and if successful, the lender providing the loan. 

@Jim Watson  Inventory is tight and competition is fierce in A-B class areas for 30+ units. I have some things up my sleeve that hopefully will kick off 3rd quarter but maybe a little larger than what you are looking for (100+ units).  I am looking for the same product you are daily and haven't been able to come up with much in A-B areas, just C-D. Happy hunting and Good Luck!

@James Wise I have seen them have success for some clients who have SFR's. Can't say that with 100% certainty as SFR's aren't in my wheelhouse but I have had folks who said they get it done. My two cents. Hope this helps.

@Garrett May  I think it is worth adding that I have had several clients who have all had favorable experiences with Neal and North Coast.  Large to small deals.  I was not involved in terms that were offered but expertise and ability to close on time and meet deadlines was all I could ask for.  Good Luck!

@Chris Collins I am familiar with the Willoughby property you are speaking of. You are indeed correct that this is overpriced based on the market. Two big items to consider when looking at these multi tenant properties is What is the roof condition? (obvious) but a big one that is often overlooked is: Who is responsible for the mechanical repairs and replacement per the NNN lease agreements. Good Luck!

@Jagdish Bajaj  I think it is also worth noting that not all of the faculty, staff, students, administrators, etc. of the Schools and Hospitals in University Circle live or want to live within a 5 mile radius of their respective employer.  Cleveland is a very commuter friendly city with drive times from one side to another averaging around 30+/- minutes.  I would estimate that 30% live nearby, 70% commute from a inner or outer ring suburb.  Of course this is open to a lot of interpretation but I think my point is valid.  

I also echo everyone's thoughts about street by street analysis.  

Additionally,  to further elaborate on your question about attracting better, higher paying tenants with suite upgrades, I would make the comment that yes these finishes help attract and retain higher rents.  However, for instance, providing these higher grade finishes in a building in a rough area will still be less likely to attract the desired tenant base.  Bottom line, if a higher paying tenant does not feel safe in a particular area or street, the less likely they will rent at your property.  Generally my clients who want to control the rents in a certain area make a significant investment in acquiring several properties within a street or block, clean them up and then control the "look and feel" of the street resulting in higher rents with a long term hold strategy.  

@Sarah Lorenz  No unicorns and rainbow analysis needed for my listing. The occupancy is so low because more than 1/2 the product needs full or partial renovation.  What is rent ready (43 units) is over 90% occupancy.  50% rule doesn't apply here, most expenses (including heat and water in some) is passed thru to tenant.  I am happy to email you the OM with a YouTube Video of the whole portfolio so you can better understand current condition, occupancy and financials both actual and my pro forma.  Feel free to pm me your email.  I can't however give you any of my unicorns, I keep those for myself. 

@David Terbeek  In my opinion, I would stay clear of CoinMech.  They prefer long term agreements (7 years+) and file a lien on title which can be very difficult to remove.  Most providers are all providing the management for a 50/50 on revenue.  I have had great success with Howard Shear at Lakeside Laundry.  Happy to provide his contact information, please feel free to PM me.   Good Luck!

@Alex Gorges  With no disrespect meant, I suspect I am very aware of your hidden treasure.  The problem here is that the City will not allow a sale without an occupancy permit / point of sale inspection completed.  At its current state, an occupancy permit will not be granted and the City will require the new owner sign off on its new plans and renovation.   You will not be able to then "strip" it and sell it as you will ultimately be responsible for its renovation.  This property is on a lot of folks radar and the City will ensure that is sells to the "right" party.  You can certainly track down the owners using the County website and are easily found and try to do a under the radar deal with them but I suspect they will be hesitant to do anything as the Courts and City has directed them to do nothing at this time.  In full disclosure, if it is the property I am thinking of (near airport), then I would not be surprised if it becomes a car lot by one of the biggest car dealers in the area who is interested in the site.  If it is not the property I am thinking of, I suspect you will still have difficulty executing your plan without any City asking questions.   While I do not mean to rain on your idea, I do not want to see you get in over your head to a situation that can do some financial damage to you.  I am happy to discuss, feel free to PM me.  Good Luck!

@Brady Hastings  An Investor can go for the training, but in order to call themselves a CCIM, will have to qualify for the designee requirements CCIM puts forth.  More simply, in order to call yourself a CCIM one must pass the final examination and have an approved portfolio showing certain volume levels or quantity levels.  

I think the education is valuable to all, but arguably the biggest value to agents and brokers is the ability to call themselves a CCIM.  To investors, the knowledge learned is more of the benefit than the ability to have the letters after your name anyways.  

Long story short, I think it is worth it.  It will broaden your investment horizons pertaining to financing, asset classes, risk assessments, just to name a few. Give the Intro class a shot and go from there. 

I am happy to chat anytime about my opinion of the designation.   Good Luck!