All Forum Posts by: Michelle Mercer

Sounds like a hell of a deal @Michelle Mercer I've done some warehouse deals and if you are getting into development I'd put some thought into your ideal tenant and what they are doing or storing.  For instance we work with a flooring supplier and in their warehouses they absolutely must have sprinklers for their inventory, but depending on the jurisdiction and the material being stored there may be specific sprinklers required.  There are also regulations around square footages and sprinklers.  Also clear height is something to consider when thinking about your ideal tenant, and if they need dock doors or drive in.  Just some thoughts from being on the "shopping end" of warehouses. 

Any update? Have the tenants been paying on time?

Did you ever create a list of capex? Building survey?

Start creating a list and budget for when a tenant vacates. You need to know market rent and what condition to bring your building space up to in order to have the shortest down time as possible.

Preparing now will avoid stress later.

I know this probably isn't the case but the negative loan balance may be confusing for some who may see a matrix for the first time. HELOCs are available for investors but as far as I know, there is no DSCR underwrite. All traditional DTI / governmental standard qualification rules apply.

Hi Michelle,

We do offer HELOC's on investment properties. Taking a look at the guidelines and it looks like we would be able to take you to a LTV of 70%.

Figure out your buy box. Then keep that narrow and keep buying. Its fun and simple.

I own 5 properties and self manage it all (I have staff, but still very easy) Single tenant NNN, just random needs, but never a headache.

What does your legal team look like?

Alaska is not easy to get to, but it really varies from one location to the next. Anchorage is very different from communities like Juneau, that are not accessible by road. Anchorage located near JBER, a large Air Force/Army base and is the center for the state's economy so the population isn't transient. Ironically, Anchorage real estate values and the rental market have great appreciation (in most areas) due to a limit of buildable land. The state has a vast amount of undeveloped land, but the Anchorage area is bound between mountains, ocean, and government/military land. We don't have 13% CAP rates, but 8-9% in some areas.