All Forum Posts by: Michael Blank

@Christopher Cafferty welcome to BiggerPockets!

You may also try [url]www.loopnet.com[/url] ... for a small monthly fee you can get sales comps, including the per unit cost.

Hope that helps ... Michael

Brian - why is the building vacant, and why do you think you can get it to 92% occupancy?

Michael

Hi https://www.biggerpockets.com/users/Ryanbuys804Rva3, welcome to BP. "Taking action" is key!

Welcome Dan!

One other thing to consider is to verify the seller’s ACTUAL rents collected. If in addition to the vacancies, another 30% of tenants aren’t paying their rents, then you’ll have a serious cash flow problem. So, verify the actual rents. Do this by either inspecting the seller's bank statements or tax returns. If they refuse, then it's a strong red flag. I had this bite me one time but luckily caught it and re-negotiated the deal.

Michael

Thanks for sharing! And nice job just getting started with investing. So many people say “one day” and leave it at that. Keep us posted!

Michael

I forgot to respond to the other part of your question: WRT making offers, I have found it is very rare that a commercial real estate agent is out there making offers for you. They typically represent the seller. As a result, you’re usually the one either contacting the seller’s agent or the seller directly.

While there are many different ways you can get deals (direct mail, networking, probate, auctions, etc), I have found that most deals come from good commercial real estate agents. I would focus on building trust with 2-5 agents who will feed you good, often off-market deals.

Michael

If the existing hot water is sufficient for all 3 units then I might consider pro-rating it across all three units. No need to install new heaters if they’re enough for the building.

Michael

There’s vacancy rate, and there’s actual rents collected. I bought a 12-unit apartment a few years ago with a 10% vacancy rate. After looking into the seller’s bank deposits, I discovered that half of the tenants were chronically behind, some of them many months. So the seller was only collecting half the rents in some months! Make sure to also verify the actual rents collected with either bank deposits or tax returns. Otherwise, get out of your contract or re-negotiate the deal based on actual income.

Michael