All Forum Posts by: Michael K Gallagher

Hey @Keirsha Evans are you a licensed agent looking to get involved in the forums?  or are you still exploring what it looks like to be an agent?  If you are specifically asking about the requirements to get licensed you'll want to do a google search for you local laws and requirements.

 I've worked on a couple warehouse deals, not sure if you have a single or multi tenant and what the lease terms or time left on the lease is, but to @Henry Clark s point, that kind of cashflow return for that type of initial investment is awesome. I don't think that I'd personally trade that in for STR or multi family, the hassle of people is much more than dealing with the hassle of a warehouse business at least in my mind.

but if the cash gets your overall portfolio to a place you'd prefer more then go for it, but personally the current deal sounds awesome.  

@David Weitzel great deal, and welcome to the forumns, I love the idea of doing a flip on my own street, seems easier to keep things under wraps but perhaps you still had contractor issues it sounds like?

 little late to this party, but brokerage doesn't matter.  They are all the same, the splits are all basically the same it doesn't matter from what I've seen.  If you want to find someplace to land pick it based on environment/people.  Its a tired saying but getting around the best people will make the difference.  

There is a ton of BS in this industry, but that's makes the real producers pretty easy to spot.  Make yourself useful to them and start getting reps.

I wish I had made the choice and decision early on to commit to only 1 form of lead gen and actually doing it.  I tried like 6 things at once and didn't do any of them well, took me a while to figure it out, and saying no early on will be a big help.

@Mark Towey I don't "farm" areas personally, it doesn't really fit the niche I'm personally going after, but what I have heard from some major agents in my market lately is that farming is not near as productive as it used to.  I've heard/had good results with more targeted driving for dollars looking for distress, or to some other comments points here, look for other data points to isolate "needs" to sell rather than "wants".

@Von Wilson theres a lot here to unpack.

Are you saying that there is a parcel of land next to where your business is that is under construction and is impacting your business?

It also sounds like you own the land your business is on and are thinking about developing the land with a similar building to what is being built next to you?

Have you built this kind of building before?  your comment around "approvals will be easy to get" gives me pays if you've not done this type of project before, I understand your logic, and I don't know your local municipality but it always seems to me that no matter how easy we think a project or approval is going to be, something always comes up.

@Hayley Beckman Thanks for sharing!  are you an investor in the detroit market?

While I've never invested personally in Detroit, my usual word of caution to investors in these "lower cost" markets is that while cashflow is great on a % basis, make sure to look at the actual quantity of cashflow.  Many of these homes in the midwest can be old, and have deferred maintenance and the management of these assets (ie. handling Detroit winters) is often where the deal is made or missed. If a $200 a month cashflow is 20% return then that's still only $2,400 a year and that can get eaten up by capex and other issues pretty quick. I don't mean to suggest $200 a month in cashflow is a bad return its actually amazing, but the expectations should be clear and understood in my experience.  

However, to your point the underlying fundamentals of the market clearly are worthy of investigation.

@Darren Samson 

what kind of loan you can use is a question for a local lender.  I have seen loan products that will let you purchase a mixed use property to live in the residential unit, but that is a specific product and you should consult and expert to see the best option for you and your cash on hand.  

The biggest reason I would advocate for mixed use is for the reasons you mentioned, the leases are longer, but also the general "issues" around tenants on the residential side don't come into play as much or at all.  Also if the property is zoned such that commercial can be there, you've got more options for an eventual redevelopment in my mind.  looking longterm who knows what's going to happen in the market.

The largest thing to be cautious about is that with commercial tenants you as the owner often have to put up money in the form of a check or abated or free rent to help the tenant get open for business and build out the space.  You'll also likely have longer than tradition residential vacancies.  

however, if you could find a loan product that worked for you and your situation, its a fantastic idea in my mind, and worth taking a swing for.

@Henry Clark thanks for sharing this detail, really interesting to see the operations and "stabilizing" side of things. 

@Sigmund VanDamme I'm not familiar with them as others here seem to be, but I do a pretty good bit of searching for industrial and flex space all over the country specifically for a flooring and carpet distributor.  We've hunted down everything from 8K SF - I'm currently looking at 85K SF for them so they really run the range depending on market and facility we are working on, but at every single one of those space sizes, its been competitive.  they are a credit tenant and as such we can kinda throw that weight around to take first position in cases sometimes, but for the most part its an exceptionally competitive asset class for the end user, ie me the tenant rep, to find space and get into ahead of the competition.  

We often are trying to lease new space that isn't built yet as a way to secure a foothold in a market.

I say all that to say: if its an asset you are looking at building, as someone that looks for those assets a lot, there seems to be a strong demand for them.