All Forum Posts by: Michael Glaspie

If all units are under one roof it is definitely commercial like @Todd Olson mentioned. I would reach out to mulitple commercial brokers and see what they can do. At that price point, if units are leased like you say, you may be able to secure a loan at 20% down and 30 yr amortization. It is a solid opportunity to secure the property and implement a strategy to either add value and reposition, cash flow, or both. Best of luck!!

Absolutely. You will find that this is a small community once you become active in it. Plenty of people on here help provide insight and tips. 

@David Pere thanks for the shout out. @Tomori Moore welcome to BP. Yes, Shelby and I are veterans, brokers, and investors here in Fayetteville, NC. Please let me know if there is anything we can do. We host monthly meetups that will allow you to meet all of the key players in our market. You can establish relationships and potential partners through that venue as well. I will send you a PM to follow up.

BPO meaning the broker price opinion? So, my next question would be what is the reported NOI and CAP rate? Becuase I can see how a gross income of 193k with a low cap rate can demand much more.

Get the following document:

operating/management agreement

t-12

current leases/contracts

maintenance records/work orders

That should be enough to determine past income, projected income (6 months or so), operating expenses, and general CAPEX needed.

Yes, the debt is what I am leaning towards simply because the property isn't so big that I need a partner to secure a loan. It's just that I am lacking the equity piece. I am not against partnering by any means, but when it makes sense to. 

Ok, thank you all for the feedback. I just needed to get some different points of view. 

Coming up on my next deal. I'm in negotiations and I am looking for the best way to approach it. I am short by about $50,000 to purchase the property. I have found ways to raise the capital. The internal debate is which method would be simplest; borrow the money as a private loan to purchase and use cash flow to pay off. Or allow the individual to partner and take an equitable share of the profits until I can pay them off. 

There are pros and cons to both. The private money loan option will significantly reduce cash flow but would allow me to retain 100% ownership and decision making power. Whereas the partnership portion would allow us to take it down much quicker and with substantially more reserves, but it would more deliberation for each decision to be made on the property. 

All in all, I feel comfortable with both options and have a little more time before the decision needs to be made, so I am curious to what you all may think. Or what experiences you have been through that would push you one way or another. 

@Cameron Rockey have you thought about simply interning with a real estate investor? Or potentially getting your real estate license? I am military as well and have started a business around investing and brokerage. We provide internship opportunities for transitioning veterans, which makes me think there may be something like that available in your market. Ultiamtely, real estate is an entrepreneurial journey no matter how you slice it. Money will come and go. The "stability" is really only found with your consistancy. It is easy to say, or think, that you can have a "care free" financial life with real estate but it is not the case for many entrepreneurs. Keep up the hard work and best of luck on your real estate journey.

@Joshlee Ulysse I have not heard of Cherif, but the strategy seems solid. I do enjoy commercial real estate. This is going to be a solid journey for you, I would just say keep reading more about commercial assets and trends. You will see certain submarkets can support higher rates for retail vs industrial etc. I am assuming most of yours will be retail and potentially office. You could try to secure NNN leases from the clients, but I am not sure if you could do that in a sublease if that wasn't the original agreements with the owner. Yea there are a few questions I have about that, but either way it is very similiar to what Ron Legrand is popular for in the single family space. Potentially, you could study his material at a much lower rate and apply it to the commercial side. Best of luck.

Master lease is an option. I am not familiar with the Florida market, but the "ideal tenant" depends HEAVILY on location, surrounding business, size of the space, condition, and price point. Any type of retail tenant could hypothetically lease that property. I would recommend locking up the property with a contract then seeking a commercial broker who focuses on tenant leasing and has them represent you. This will allow you to see the process run, reduce vacancy, and get you prepared to do the next few on your own. You can definitely do it yourself and you may enjoy that more, I just think it may be more beneficial for you based on the vagueness of your question. 

I am looking for an attorney who is experienced with Multi-family syndication and can conduct business in North Carolina. The attorney will need to be able to not only complete the proper documentation and filing but also need to be able to provide guidance and references to other third party key players involved in the process. 

Who do you know that may fit this bill?