All Forum Posts by: Priyanshu Adathakkar

Ask for copy of leases, rent roll and 3 years of tax returns.

In the leases look for a) when was it signed b) how long is the lease and how much of that lease term is left c) What if any is the renewal term. Watch out for month to month leases.

Rent roll will give you the historic vacancy rate.

Tax returns will tell you if the property is making money or losing money.

Also ask if there is any deferred maintenance.

Honestly, your Realtor should be doing all this, unless he/she is an inexperienced agent with no commercial experience!

Getting big box retailers excited in a location is a very complex, if you do not have any experience or relationships with corporate you will not get anywhere. Your best option is to hook-up with a commercial agent who has the experience and contacts. Big developers who work with these retailers either brokers themselves or work exclusively with a brokerage in a particular area.

If you know what you are doing, here is what I like to do, get properties that have a higher vacancy at 8 CAP, fill it up bring it to 10 CAP and then sell it at 7.5 CAP. But as I said you should know what you are doing or you could end up losing a lot of money.

If you have 15K team up with a couple of other people with similar money to invest. If you only 15K and decide to go it alone and invest it all in a project without any previous experience, you might end up losing 25K or more, just saying.

@Jordan Butz your question requires an entire course in commercial real estate investing to answer. Short answer any office, retail, industrial and any such properties are good, if not better commercial investments. Each have their own criteria you would use to evaluate their individual desirability as an investment. 

The U.S. Small Business Administration offers 10% down low-cost real estate loans as long as the business occupies at least 51% of the space. If you can show that your business generates enough revenue to pay the mortgage (even without the rent from the 49% space), you are good. The value of the property will be gauged on the quality of the tenant and the quality of the lease (how long has the tenant been renting, how many years are left on the lease, what are the renewal options etc).

Alternately you can buy the property under a separate LLC and your company leases from that LLC effectively making it a non-owner occupied investment property. Now you can evaluate it on CAP rate, NOI etc. Talk to your tax attorney about the advantages and disadvantages of going either route.

Location, location, location plus current zoning, availabilty of comparable land in a 5 mile radius, availability of utilities (on site or nearby), is it a pad site or raw land or demolition and prep is needed etc will determine the asking price which could be entirely arbitrary. I have a piece of redevelopment land in contract @$600,000/acer compared to $200,000/acre comps (previous sales) in the area.     

@Pasquale NA Form an LLC with just you or with your family members as members and buy properties in the LLC's name. Look for something that has owner financing. This will help you accomplish your goals.

LLCs are CYA vehicles, always have property specific LLC and dissolve it as soon as it is sold. Any claims against the LLC if there is a problem or claim will not cast a shadow over your next property.

Hi James, I would love to meet up with you and discuss real estate in our town over a cup of coffee. Can we meet sometime next week? Thanks Pri