All Forum Posts by: Michael K Gallagher

 Seth, 

Not sure what market you are in, but I can garantee I can provide you some insights on this.  We've done over 500 urgent care deals and own and maintain what we believe to be the largest and most comprehensive database of urgent cares.  

In short there are many levers that go into a deal like this including but not limited to TIA, buildout, Operator risk, etc...would be more than happy to jump on a call and see if we can provide some insights for your purchase.

In general we do not like to place urgent cares in med office spaces, although hospital systems are notorious for throwing an UC in empty or extra med office space they have.  the majority of the successful urgent cares in the county are in close proximity to grocery anchored retail centers.

 There really isn't a "general caprate" for an entire area.  you'd have to break it down to some like for like comparisons to come up with a more "general caprate for a specific asset class" or something like that.  

call me old fashion but if you are sifting through deals, the number 1 thing I look at is market dynamics. I'm not even considering a deal if its not in the specific market that meets my requirements for demographics and psychographic profiling. 

- Then the next filter is physical property attributes with regard to its placement in the market, entrances, and exits, visibility etc.   

- Then I start looking at prices and returns etc.

This is why I like to go in that order, the least of which is that it helps sift through a lot of crap quickly.

 The physical asset you are going after is going to dictate much of what "fair pricing"is going to me.  Same logic applies here as it does to your previous experience, there's just simply an added layer of the income produced by the property.  But ultimately all tenants leave, all debt comes due, and you're going to need to backfill it, so who is that, what pool of tenants could you consider? is significant retrofit needed?

- Generally if you are getting triple net deals from big name brokers the deals are going to be overpriced. The CBRE's of the world are notorious for overpricing their Broker opinions of value in my experience. 

- If you are looking for help/input like I said we specialize in market and site selection, so if you haven't don't that yet, we've got some data backed approaches that might be interesting to you.   its mostly focused on retail, but the inputs are infinitely adjustable for whatever asset you are going after.   

 I'd certainly echo what most have said here, #1 sounds out of the norm for what I'm used to dealing with in retail. 

Also will 1 up the sentiment to underwrite the dirt itself, and the building itself.  Where are these in the shopping center?  are they even in a shopping center?  is there an alternate use to put in there following the restaurant.  wink wink, if its in a grocery anchored center retail medicine would be a great alternate use.

and I assume you are looking at a free standing single tenant building, especially if its a QSR....just very surprised there isn't some kind of a ground lease at play here, given the situation.  

@Jonathan Greene this is very true.  I still consider myself fairly new to this world, and I can say with 100% certainly the biggest battles are the internal ones, and this industry has given the pleasure of being forced to address several of my short comings, and continue to address them all the time.

I find I get the most emotional when I get reactionary, so my constant focus is around honing and suppressing reaction as a whole both internal and external.

Thanks for taking the time to write this up.

I do not do this personally, but grew up around "horse people" in vermont/NH, and I feel like this is a great idea! Perhaps a stupid question but is there a way to like parlay this into a type of themed Short term rental or vacation rental type thing?  Like come stay on our property, bring your horse if ya want? or do people not really travel with horses?  

regardless what a great Ideal I'd be facinated to hear how it turns out.  

I'm a product of BP through and through, was on these forums figuring out how to house hack after we already were in contract on a duplex, all the way through making it the foundation of my current business.  I've listened to just about every podcast in the BP library, hell I was listening to "left field investing" before they got bought out back when they were on the "gentle art of crushing it".  My point being I've consumed a vast quantity, and variety of content in the rei space.  Since becoming an investor agent have expanded that into the agent content areas.  

I recently found myself struggling to even find a podcast to listen to, none sounded like anything that would serve me in my current state of mind, (out side of BP On the market, let's be honest that's the only reason i have any idea what's going on at a macro level with the economy at all, so anytime a new episode is out there its a listing immediately).  

that caused me to turn to music, I haven't listened to music while working out or on a walk or working in the yard for years, its always been podcast time, in the interest of maximum efficiency.  

I've found myself more focused, and have come to the realization that while, the vast world of REI and improvement podcasts is a great way to find out what is possible, it does not work well for me to help drill down and take action, especially when this is an industry that literally everything could work.

I'm excited to take this new "era" to BP con and use that as another launching point going into the Q4 and Q1, and ensuring I'm saying NO more than I'm saying yes.  

whoa!!! those are legit amazing rates! thank you for sharing.

My first question is what are the terms left of the leases.  Are there any units your going to need to turn right away?  are you confident in the use case for the building or are you planning to repurpose to something else?

I like the multi unit office model, like multi family it brings down the vacancy risk, but also, in a small town I'd be looking at growth trends, incoming investments etc to confirm that use case for the long term.  There are some long term tenants but others look like they just turned.

 These are some great thoughts on the situation.  I like the idea of the 10 year deal extension and 6.5 years of abetment.  Really cool way to do it so all parties have some skin in the game.  

I wouldn't anticipate there would be any major issues, otherwise how could you rent to students?  As far as the practicality, you want to look for homes with somewhat separate spaces, and theres an app now called padsplit that I've not used but have heard good things about to help with the management nuance of it.  

its a solid strategy for sure especially as housing gets more expensive.  You'll want to have an idea of how you handle utilities, and I've heard of the owner covering a weekly house cleaning to keep the peace sort of thing.