All Forum Posts by: Michael Glaspie

@Usha Ramaswamy I agree with @Nicholas Aiola. I am not a CPA, but I have had many in-depth conversations with him about the best strategy to hold real estate in. He has always told me to not hold them in an S-Corp. 

If you have any other research against that, I would like to see it as well to bring back up with my CPA. 

Hey @Clayton Moss, that is a loaded question! There is a lot to consider with a commercial property. Here are a few items I will point out for you to research:

1. zoning
2. current leases
3. condition (inspections (Property Condition Assessment))
4. taxes
5. insurance
6. seller financing as an option
7. the lending option you plan on using

Now, once you have that information you can begin to understand lenders requirements to purchase:

• net worth
• dscr
• ltv
• etc

From there you can get pre-qualified and make an offer. During your DD period, I would do more research on how the process should be played out. 

Ultimately, I am a firm believer in jump and figure out how to fly while falling. It appears you have a similar mindset. I think you can run the numbers to determine a good offer price. Then allow yourself enough DD time to start inspections and retrade if needed. If it doesn't work out, then it is just a hard lesson learned. 

Best of luck. 

I have actually looked into investing, and possibly moving, to TN here in the very near future as well.  I am going to Nashville this Fall and intend to stop at multiple cities along the way. After reading this thread, Chatanooga sounds a lot like Colorado Springs, CO. I fell in love with that place because of the outdoor activities. 

We would love to sit down with you when you get back from your deployment. Keep studying and be safe over there. 

Property managers are worth their weight in gold when you find a good one!

I am studying strategic economics in my MBA program currently. I am by no means an extremely savvy economist. However, I have seen that economics is a much broader concept that we believe it to be. The macroeconomics state is impacted by international markets across all industries. To look at the real estate market as a whole would still be just a minor fraction of the global economic picture. 

My point is I think that it is incredibly hard to predict what the housing market will do and how long it will last. I agree with @Michael Ealy, that if you are in the buy and hold game you will outlive many market cycles. If you are buying one and two projects a year I don't think an overhaul of underwriting is necessary. If you are turning out large projects with hard money, then margins might become more relevant. 

I don't know if I answered your question or not, but I hope I provided some insight. 

I would suggest you look into a Qualified Retirement Plan (QRP) as well. Look at the pros and cons of each. I am in the middle of transferring over my army retirement plan to another vehicle. So a lot of information is being discovered. 

Hey @Amanda W. I have a LOC with my bank against my business. In fact, I have several business that all have a LOC. With no financials they will approve $10k. With track record of success (existence) they will approve up the $50k without digging into financials. After that, they can approve much higher but underwriting is involved.

My point being there are banks out there that will do it. I highly recommend going to a local or regional bank/credit union becuase they will be less strict compared to a large national. We actually get most of our clients to this lender to get the LOC to continue to purchase BRRR or Flips.

I would suggest asking differnt banks. And from my understanding, the use of the LOC is irrelevant. The limit given on the LOC is based on the actual business performance.

I have been looking for multi-family in college station for a while. Congratulations!! I'd love to hear your story

@Account Closed I'm glad you asked. With the residential rentals I own, there are so many costs associated with maintaining the property and tenant turn over. Things like roof, plumbing, HVAC, electrical will undoubtedly need to be replaced or upgraded at some point. 

With self storage, it is literally concrete. If there are climate controlled units then you might have some HVAC maintenance costs, but that's about it. Rents are fairly low, low enough that most people may end up forgetting they have items in storage. If they do abandon the storage, you can auction off the contents. Not a very lucrative ending, but none the less you may be able to recover some of the lossed revenue that way. 

You can also increase NOI by selling packaging materials or sub leasing UHAUL trucks. I am still learning alot but it is very interesting to me.