All Forum Posts by: Mike Khalil

Hi everyone,

I own a lot, approximately 1.27 acre in a prime location zoned mixed commercial. All utilities and power on site. I was wondering and needing some tips on what i could possibly develop on it but I’m not sure if it’s enough space to maybe do a few retail shops or a small strip center with enough parking. How do i go about this or any recommendations on what to do next.

Any help is much appreciated.

@Payne Wald

Hi, I use Riyad from cowboy tax in Richardson he’s been really helpful for me and my business operations, however he’s not a attorney.

@Joel Owens good point there, completely agree with the last part. Takes years to build capital but one bad deal can leave you empty handed. Will definitely be more cautious as i am not in rush and will want to be completely comportable with the investment before pulling the trigger on such deals. 

@Greg Dickerson very helpful tips will definitely be on the look out, much appreciated.

@Chase Olson thanks for the advice, will note that.

@Steve Stuart

Steve,

Now that makes a lot more sense, great advice thanks!

I been interested in learning and getting into the idea of purchasing a triple net strip center or shopping center but having a hard time making my numbers work when looking at a deal.

Example: $2M shopping center offered for sale at 7.25% cap rate, equates to a NOI of $145,000 a year or $12,083 a month.

Debt services =$8,200/m (25% down, 4% rate)

Insurance =$ 500-700/m

Taxes =$2000/m

=$10,700/m

that leaves you with a net cash flow of $1,383/m without factoring vacancies or any other major expenses.

Not very appealing on paper, am i missing something ?

@Jack Yen

Hi jack, please PM if you would like me to answer some more details questions, i currently own and operate multiple C-Stores with gas in Dallas, TX.

@Cameron Lam

Great stuff, Congrats!!!!

@Jared Rine Hey Jared thanks for the response. I went ahead and PM you to discuss this further and more in details.