All Forum Posts by: Patric Doyle

Outside of running your own rental and having some cash available. What would you say is the very first step in getting started in commercial real estate (i.e. multifamily or triple net)? It seems like it's a whole other world. Where do you start to build contacts?

Start by networking with the development team professionals in your local market.

Developer: in charge of the entire process
Partners: Strategic Partners understand the market & are a general partner in the deal
Financing & Funding: debt & equity partners
Legal: all contracts, leases, closings
Broker: site & tenant acquisition
Community (AHJ): zoning, building permits, inspections, business license - help ensure the project complies with zoning regulations & will be a benefit to the community
Design & Construction
Design Team
- Architect
- Structural Engineer
- Mechanical/Plumbing/Electrical (MEP) Engineer
- Civil Engineer
- Landscape Architect
Management
- Project Management through construction completion
- Property Management throughout the lifetime of owning the asset

Thank you Kristi!

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Thanks Danny, that really helps. So, is the license for CRE the same as a general RE license?

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Quote from @Brian Cauldwell:

Hi @Patric Doyle coming from a private institutional perspective, you will notice that lending for these multifamily properties (5+ units) changes, compared to buying rental properties that are 1-4 units. So, if you are looking to step into the 5+ unit space, then be prepared to learn a new set of lending guidelines.

Some of the changes for those are less leverage (more cash down), higher interest rates, more strict DSCR requirements, and the use of in-place rents instead of market rents.

This may be different with some lenders, but most follow those guidelines. I have had a lot of long conversations with my clients about they can expect when stepping into the commercial real estate space.

As far as steps to getting into multifamily properties and being proactive in feeling comfortable in stepping into that space, I would start with 1-4 unit rentals. Running those properties, dealing with vacancies, etc. A 4-unit property would be the closest thing you could buy/operate that would show you what a 5+ unit property would feel like, while still getting essentially the same leverage and rates for a SFH.

Thank You Brian.

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Hey Kevin, I just did a similar thing and used a Legal group out of Utah (which was out of State for me at the time), but they had me set up a new entity for TN. From my understanding (with some exceptions) you want to set the entity up in the place you're doing business.

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Knoxville, Tennessee

Has anyone heard of anyone doing successful business with this new company?

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Hey All!

I've been a member of BP for a while, however I have not posted much until today. I wanted to say; I am so thankful for the podcasts and information available here. It truly has been life changing. I have moved my entire life to the Southeast chasing 'synergy' thanks to David Greene, and have started an electrical company (Service Life) in an effort to improve my ability to help others through electrical service. David and others have continuously called folks to take action, so here I am! Thanks!

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Knoxville, Tennessee

All Forum Posts by: Patric Doyle

Patric Doyle has started 2 posts and replied 7 times.

Post: insight into baby steps?

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Post: Just Wanted to Say Hello and Thanks!