All Forum Posts by: Dylan Tanner

10 years until options kick in.

10% in 5 years

cap rate is 6.75%

free and clear, but he doesn't want to finance.

penalty, i'm thinking $100k. 10 years left equals about 700k.

@Joel Owens ,

To answer some of your questions:

- it's guaranteed by BK corporate
- LL contacted me directly wanting to sell and I told him I'd buy
- it's currently in the primary term
- this is an absolute NNN lease

I'm partnering with a good friend to purchase the property cash. When running my analysis, the only downside I see is I will only profit if BK pays a penalty. If I flip it without BK paying a penalty, I'd just break even and that's whats making my draw back a bit.

For the reason of relying on BK to pay a penalty to profit, I may just broker it to another buyer and make the commission on it. So I've got few options available.

Hey guys,

I ran by a deal where BK moved out but still has a 10 year absolute NNN lease in place. They're paying about 20% less then market rates. I'm wondering if I were to purchase it, would BK pay a fee upfront to break the lease? Is there a standard percentage fee they'd usually pay? Has anyone ever came across this situation?

I'm thinking of purchasing the property, finding another equal credit tenant as BK or better to lease the building at a slightly higher rate (about 15% under market right now), then having BK pay the fee and ultimately selling the property.

It's a great area with solid demos and many other national on the same block, no clue why they couldn't survive.

Thanks

That would be on point. I have a friend that use to work very closely with one of the top producers from southern ca (he's on the Wall Street list) and his marketing cost is exactly at 10% as well.

Thank you for your comments. They've really helped create a clear path of where I see myself in the future. So, what happens when you want to take a vacation? With 5 non-licensed staff members, a co Lister on board and 6 buyers agents, it seems like they can handle themselves while you're gone?

@Monica Breckenridge what portion of your revenue would you say contributes to marketing?

@Karen Margravethats a great question to ask @Monica Breckenridge. 240 sides is a lot of business so some marketing tips would be great!

@Monica Breckenridge Thats awesome.. again, so similar to the set up we have here at our office =) Great, I'm happy to hear that model works for you. 240 sides so far this year is PHENOMONAL.

@Monica BreckenridgeThank you for your detailed reply. I think your TEAM approach is a solid one. The commercial real estate office I am apart of is almost identical to your set up. We're a small boutique firm, but do the most deals in the market - a lot of a little, relatively in the commercial market.

Beyond their splits, do you do any profit sharing with them by chance? Doing a team model like you have set up (or like how my current company has set up) is a great idea. I personally don't like the competition I see agents create against each other so to have a whole office working as a team to get deals closed, I think its a win win for everyone.

@LASHANDRIA SANDERSON - REO listings are awesome =)

@Lashandria Sanderson

@Joel Owens For commercial, I do a lot of medical office sales/leasing and retail sales. I see your view of why you may not like babysitting agents. 50 agents sounds like a lot! I guess to me, it's a way to work towards owning an actual business and not being only self employed. In other words, I can take a 1 week vacation and the machine can still operate without me being present. To answer your question, maybe it's because I don't know better yet, but I think I would be ok with managing and helping agents take deals from A - Z. Again, not having already walked your path, I can only imagine and make guesstimates right now.

@LASHANDRIA SANDERSON How does your 1 agent do? Profitable? Worthy of your time to overlook? Don't worry, I won't tell them =)