All Forum Posts by: Greg V.

Ok so this might sound crazy and it does have a lot of risk. People right now are looking for syndicators to pool money and buy properties in the Metaverse. The top two right now would be Decentraland and Sandbox. It’s similar to physical land in that there’s good locations, different sized plots, etc. You can even rent out your land to someone else for events or a longer term lease. Any one interested?

@Dennis Meints I’d be interested to hear what you find out.  I have commercial property in western Wisconsin but would be interested in Pine Island. 

This is for an investment property.  Not sure the options of you tie the loan to the business and get SBA loans, etc

Sorry meant 75-80% loan to value.  

Usually 20-25% loan to value.  20-25 year amortization.  We usually do 5 year fixed rate but can go up to 7 years fixed.  Also normal is a pre-payment penalty.  If it’s a 5 year fixed, we have 5% penalty in first year, 4% in second year on down to 1% the last year.  We’re closing on two loans right now at 3.5% interest with a 0.5% origination fee

When we looked at doing something similar about 4 years ago, it was looking like $250k which included the elevator and the building out the shaft.  I have no idea what the cost would be now with labor and materials as high as they are.

You can absolutely do value add.  That’s been our strategy and it’s worked great.  You definitely need to understand how long a building can sit vacant.  We assume 2 years before we get a new tenant and a good amount of landlord paid build outs.  Generally, how much cash flow you can make depends on how much cash you’re bringing to potential deals to get into larger purchases.  It’s definitely possible to get into 6 figures even without syndicating.  

I converted a Restaurant/bar/banquet center into a multi-tenant office building.  The layout was ideal for that conversion but it was definitely still a challenge to make the numbers work.  Multi-family will be a complete gut, new plumbing, etc.  Not sure the numbers would work for that but depends on your local area.

We invest in exactly the type of office buildings you described.  I think it’s a great space to invest in.  Just make sure you understand how long spaces typically remain vacant.  In our market, even listing a space at really competitive lease rates, it still takes around 2 years to fill.  Tenants also expect a lot of owner paid updates. 500-1500 sq ft spaces are easiest to lease in our market.

I would go on LoopNet and find properties of the size and location that you’re looking for.  I would look at both properties for sale and for lease. Then see who has the listings.  I would first contact the person who has the most listings and if that person doesn’t work out then work back to who has the least.