All Forum Posts by: Mark Spidell

You might consider the value in two ways.  The "As Is" value based on its current income and the "as stabilized" value based on what it would look like if it was fully leased.  You could then perform a discounted cash flow analysis to determine today's value.  Need to determine how long it might take to lease up and what the rental rates would look like.  You might also explore the income potential if it was repurposed.

The other comments are correct in that long term commercial loan will be based on the building's current income.  

When I have been in similar situations I have had luck by going step by step through the numbers by starting with the ARV. It is important to emphasis the following:

1. The cost of hiring a broker
2. Monthly holding costs including property taxes, insurance, and utilities
3. Opportunity costs of not receiving rental income if applicable
4. Repair costs including material, labor, and project management fees
5. The qualitative costs of having to deal with all of the above

Nice work!  Excited for you.  I have found that Allstate has the best balance between deductible and pricing, especially if you are already an Allstate customer.  State Farm can offer going pricing, but you might not like the risk of a high deductible.

After learning some hard lessons, my top suggestions when getting roofing quotes:

1. Ask them to quote the cost on a per square basis.  
2. Also ask them to separate the bid between the tear off and the install.  
3. Be sure the shingles are of the same quality.  
4. Watch the cost of "repairing" the decking of the roof.  Lot of roofing companies see that as a way to increase the bill once you have committed.
5. Ask to see their proof of insurance
6. Ask if the labor doing the actual work is their own employees or a third party.  If it is a third party.  Be careful of latter.  

Very excited for you.  You might consider analyzing each of the various properties.  Some might be easier to finance than others via a commercial loan.  For those that are not as easy, you can get more creative.

@Mike Makkar thanks for the comment.  I sent you a PM and would really appreciate your input.  Getting a wide range of responses from different options and hoping to make a decision soon.

I am a Colorado based investor with several SFR in the Dallas metro area. I have been having a tough time finding a commercial lender that will help me with a portfolio loan due to me not living in Texas. Seems like an odd hang up, but I have heard it now multiple times. Currently exploring options with Happy State Bank and Access but the terms are not great. Any suggestions are appreciated! Thanks in advance!

NICE!  Love the positive story!

Welcome Jon!  I am in Glenwood Springs, but also invest in Grand Junction a bit.

Good luck Nick!  Make it happen.  Sales work is a great way to grow your soft skills / human relations skills.