All Forum Posts by: Michelle R.

Thanks @Joel Owens. I get what you are saying about karate and fitness not really being a scale-able business model and being at barely breakeven levels for the owner. Definitely it would be important to vet the net worth of the owner/operator. I have seen a local strip (not mine), where a karate tenant was paying as much as we could get from medical tenants. This particular outfit was one of three locations owned by same operator. That would be the ideal target. 

This shopping center is pretty much covered with all types of food uses, and even most types of medical are covered. Some more specialized medical uses such as physical therapy, gynecology, audiology are not yet present and would make great additions.

My thought was to send out targeted mailings to already existing medical offices. I have had a poor experience with commercial brokers in two different areas of NJ, both on the sales and leasing side. They typically just list the property to Costar and see what inquiries they get. By sending out mailings, we would get a result better and faster than what our local brokers are able to achieve.  We would also post on our own to Costar, with a brokers protected statement, and still pay that full commission. But we have been burned before giving exclusivity and having brokers park our listing with broker making zero effort.

We also have seen the issue with numerous brokers local to us, that they do not want to co-broker a deal. Obviously they are supposed to, but they never bring people through with another broker. We are paying 6% commission and were told, basically, if we want to get other brokers interested, we have to pay more than this to keep both sides interested. This seems crazy to me. I am on verge of firing one broker who has parked three of my spaces in South Jersey with hardly any showings.

Being as we want to get our property in front of people who already own businesses, we are looking to buy a list of local operators in our area. Just not sure how to go about doing so.

We are in contract on a shopping center that has numerous vacancies. We would like to mail a flyer to business owners in our county. This would target business types that would be a good fit for the center. (Martial arts, fitness, certain types of medical, etc.)

I would appreciate any input from anyone who has done this and how it worked out.

@Dave Foster, this is a shopping center comprised of two adjacent tax lots. Yesterday was my naming deadline so I wrote down just one of the tax lots as one of my three properties identified. (As I didn't want to nullify the 1031 exchange by naming two lots on one line on the identification form, in case that is not allowed). Do you happen to know : am I allowed to put both lots on the same purchase/sale agreement? Is there anything I need to be doing in a certain way to not nullify my exchange going forward? Our intention is to acquire both lots provided all goes well during due diligence. I only named one of the lots, though, on the identification form.

The strip mall I would like to name is on two different tax lots. Should I write down just one of the lots on the naming form? 

Can I use one purchase contract that contains both tax lots on it? Or would this somehow invalidate the 1031 exchange?

Thanks in advance for any insight!

Thanks @Dave Foster, appreciate your thoughtful response. Luckily we have three solid leads that came through late in the day today, two with LOIs and one with offer accepted verbally. So we will use the 3 property rule. I would have loved to be able to use the 200% rule so as to include a fourth property where the seller is slow to respond but property has upside. But, as you mentioned, the fair market values would have been definitely 'lowball' prices. 

Like @Matt K. said- he had it down to 3 properties, but unless you have them under contract, you don't know what can happen. Fingers crossed that one out of my three will work out.  My last 1031 had contracts already signed on two properties prior to the naming deadline so we were much further along last time.

There are several off market deals that have been presented to me by brokers. We are not very far into negotiations.
On my replacement property identification form, I would like to name 4 or 5 properties by using the 200% rule. As these are not advertised on the market, I would like to list these with a somewhat low fair market value so that I can fall within the 200% guidelines. I am wondering how is fair market value determined so that I can justify the value that I will be putting on the form. Thank you.

Hi,

Looking for a referral. Please PM me.

Is there a way to make the @ mentions work? It didn't from android phone. 

@Jaysen Medhurst

Thank you. We have two other commercial properties which we owner occupy and the business will be guarantor on the loan. So for that deal, we have a prior relationship with the bank. We would prefer to not refinance after 10 years, as we would have to pay for phase 1 again, bank loan fee, etc. If there are banks that do 25 year even if adjusting, let me know if you've ever heard of that.

We have two different deals going. The first, is a commercial mortgage where we will owner occupy. The options for terms the bank has offered are:

• 7-year with a 25-year amortization

• 10-year with a 25-year amortization and blended with a Straight 20/20

• 25-year with a 25-year amortization and blended with a Straight 20/20

I don't understand what the last two mean. Could someone please explain it to me?

The other deal is a commercial mortgage on a flex/retail strip. A different bank said they don't really like to do 10 year fixed (they are more 'comfortable' doing 5 year fixed), and that they don't do loans longer than 10 years. They would do adjusting every 5 years, with 25 year amortization, balloon in year 10. OR they can 'maybe do' if the banker's superior loan officer approves it, a 10 year fixed, with 25 year amortization (also balloon). Should I be looking elsewhere on this one? Would prefer to not have balloon in year 10 as I foresee holding this property very long term.