All Forum Posts by: Thomas Greer

Agree with the above. It's all negotiated and market dependent.  Some other considerations/negotiating points that come up are (1) who pays for the work and how and (2) who does the work and how.  For (1) is the LL paying for work directly, literally amortizing it over the course of the lease, lump sum upon completion and approval/etc.  For (2) who is approving/contracting? Period to complete?  

Both parties have an interest in the real estate (leasehold and fee simple) so they both have a vested interest in the work being done.

Whatever two market participants are willing to pay for an arm's length transaction while not under duress (or however the appraisers define it!). But agreed, typically you would cap NOI and not topline rev.

Back in the day, I would look at the syllabus of various undergrad/grad programs and see what texts they use.

One text that I used during my grad work was "Real Estate Finance and Investments" by Brueggeman & Fisher.  It's a great definitive source and not too academic.

Just as "good" tenants are worth their weight...bad ones aren't worth their rent.  Chalk up the loss and retenant.

This thread has been helpful.  If there is one area that I was deficient in (and there is more than one), is construction/M&E for both residential and commercial.  It's amazing my primary home is still standing despite my ignorance.

Nope...not all.  It does connote a certain style but, man...tattoos are so normalized now.  If anything it probably gives you a memorable vibe (like "oh yeah, the girl w/ the purple hair" or "that dude w/ the long beard").

As long as we are not talking about "6ix9ine" tatted across your face...you good.

Best way to learn is to do.  But also learn by...learning.  Become a student of real estate and don't shy away from the more complicated or uninteresting aspects (construction, finance, land use/zoning).  Have fun!

Sounds like a homerun.  Congrats.  Thanks for the well written summary. I'm looking fwd to hear about the other three.

Agreed with everything above.  I will add that diversification is almost always recommended and is a tenant of modern portfolio theory. But...you do what you can with what you have and there are many ways to diversify.  There is nothing wrong w/ having some tactical asset allocation in your portfolio (e.g. undiversified, "bets") and you can diversify by other asset classes.  So, if you have a small cash reserve (emergency fund) and a 401k, and maybe are investing in some equities (mutual funds, stocks, ETF)...then maybe you only have "X" amount for real estate and what to focus on a single play/strategy/deal that you believe in.

I really like the approach @Joseph Firmin lays out and I think a lot of individuals get overwhelmed - "wait that sounds like a lot of work/time...I have to do that for every deal?".  So, if you are limited in time or money, you may want to lay out a logical timeline for due diligence/research and really dig into a potential investment and make your "play".  Assuming your are reasonably invested elsewhere.

All the best!

Caveat: I am not a financial planner, CFP, or anything like that.

Just to give another viewpoint - if you are looking at 1-2 properties then you only really care about how those properties perform and not about the larger economics.  Weigh the benefit of investing locally with the difficulties of investing out of state (which I am not against at all).  If you see a property that works for you locally, and you believe in.. go for it.  Don't pass because a market report says that statewide appreciation is lackluster.  I guess, what I like to say is that the variability in asset performance is extreme on the individual/micro scale.  You can find solid assets in a poor performing city or bad assets in a good one. 

Just a bit of "devil's advocate" and food for thought.  If I lived in LA or NY...I would probably be investing in OH too!