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All Forum Posts by: Sonny Dhillon

Sonny Dhillon has started 5 posts and replied 37 times.

Post: Real estate friendly CPA recommendation in Northern California

Sonny DhillonPosted
  • Investor
  • Manteca, CA
  • Posts 37
  • Votes 10

Hi fellow BP community. I'm real estate investor and have commercial properties , also acquired opportunity zone property and have been in search of a good CPA that understands real estate investing and are proactive.  .Any recommendation will be greatly appreciated. Thank You  

Post: Flex Space Development

Sonny DhillonPosted
  • Investor
  • Manteca, CA
  • Posts 37
  • Votes 10
Quote from @Jamie Boyd:

What is it costing per sq ft there in Texas currently to to a full build out minus the land? I was just quoted ballpark on a 10k building 1.2 to 1.3 mill just a shell mostly with only 2 bathrooms.


 did that included concrete and driveway , is that out the door everything except land ? 

Post: Industrial real estate

Sonny DhillonPosted
  • Investor
  • Manteca, CA
  • Posts 37
  • Votes 10
Quote from @Shital Thakkar:

Hi @Ramtin Roghani, Lite Industrial is in heavy demand and great investment considering lower construction cost. As @Paul Moore mentioned Lite industrial / flex building is great investment. we are building one in DFW metro and it is quick process to build too.


 hi Shital,  what's the rough cost per sqft to build flex space except the land ? 

Post: Alternative to STESSA?

Sonny DhillonPosted
  • Investor
  • Manteca, CA
  • Posts 37
  • Votes 10
Quote from @Steven Fleming:

I think I am going to move to REI Hub. It does have a cost, but not as much as Quickbooks and it still has a Real Estate focus. I also like that you can setup your own account structure which Stessa was lacking. The only issue I am having right now on REI Hub is with importing a property management statement. However, the ability to setup my accounts and correctly account for things is outweighing.


 HI Steven, how do you like rei hub,  i'm looking for alternative to stessa. I want to either go with reihub or qb.  i manage 3 properties duplexes. 

Post: Preparing to capitalize on the next market collapse

Sonny DhillonPosted
  • Investor
  • Manteca, CA
  • Posts 37
  • Votes 10
Quote from @Jay Thomas:

It's really incredible to think that, despite all the market knowledge and experience in real estate investing, no one was able to predict a major crash coming. It's almost as if those who acquired $100 million assets were blindsided by the downturn while we outside of the industry could clearly see it from afar. And yet, even with months or years to find a solution, these people are still struggling to get back on their feet. It is for this reason that it is so important for real estate investors to stay informed about what's going on in the market and look out for potential risks ahead of time. This way, they can be better prepared for any unexpected turns that may come their way in the future.


IMO alot of big deals is not there own money so that's why it's there best interest to buy at that time and bring proformas which are out of ordinary to convinence more people to invest with them , win or loose the higher up 's still make there fees and percentages ..., small investors it's our own skin in the game and thats why we can try to maneuver it and watch it more realistically .  Large deasl they could care less because it's all investor money or fund money buying 100 million + deals .  

Post: Preparing to capitalize on the next market collapse

Sonny DhillonPosted
  • Investor
  • Manteca, CA
  • Posts 37
  • Votes 10
Quote from @James Hamling:
Quote from @Jay Hinrichs:
Quote from @Scott E.:

Just want to say I appreciate everybody's responses above. I knew there would be some valuable perspective on this topic.

Seems like everybody is in agreement that commercial real estate is in trouble (unless there is some intervention like James described, which seems like a sound solution to me!) 

Maybe it's too soon to consider ways to 'take advantage' of this pained market that we are slowly entering.

All I know is that in 2008 I was just a few years out of high school. I was in the real estate business (mortgage loan officer for Countrywide) but I was still too young and naive to take advantage of the opportunities that the 2008 recession presented.

I'm hoping that this time around I can be more prepared...

@Carlos Ptriawan@Nick Rutkowski@Account Closed@James Hamling@Bill B.@Jay Hinrichs@Mike Dymski@Chris John

I see this one more like the one in the mid 80s  with the S an L debacle and the govmit setting  up the Resolution Trust..  


100%.    I don't see an "opportunity" playing out in this as many are having knee-jerk reaction to of an '08' style event. I don't know why that's where minds automatically go at any turmoil. 

If one could throw together a fund, maybe get a few billion together, now you got something, striking out to provide some form of bridge finance too commercial operators. Most commercial properties facing this "credit crunch" are good operating properties, I think people miss this fact. It's not all just vacant office spaces. 

And for that vacant office space, say a 150k sqft high-rise, those could potentially be converted into say residential units. Or more of a mixed use type structure. I am betting many are waiting on incentives to do such, some tax-credit for conversion funding of what-not. 

FYI for those not in the know; at big $ / development level when we say "tax-credits" it's not a write-off for the developer, it's a funding channel system long used by the government to provide supplemental funding for developers. They issues "tax-credits" that are then sold for $, thus limiting the investment requirement by the developer.    


 I seem to agree. Everyone is eyeing on the office space in sf or Manhattan , but that has been problem for last 3-4 years and it's a known issue and i don't see it crimpling to to other areas of real estate, it's no brainer that mega office buildings in these big downtowns will stay empty unless converted because the idea of commuting 2 hours to go to office and work all day for corporate greed is going away. I don't think office space has much of a problem in smaller cities where office space is needed.  The whole culture of big city downtowns is changing , people want to actually move to suburbs and out where they can have somewhat of slow pace life, house raise family. I don't' think anyone is returning back to those mega office building in sf downtown because alot of people are moving out 1-2 hours and it's not feasible to commute anymore.  Also cities like SF has a homeless problem which is destroying it's tourism as well so multiple issues . Only thing is to convert those buildings which someone will do and not build anymore big risese offices , but i do believe office buildings are needed in outskirts/ suburbs where people are actually moving and living. 

Post: Multifamily vs. Commercial

Sonny DhillonPosted
  • Investor
  • Manteca, CA
  • Posts 37
  • Votes 10
Quote from @Ronald Rohde:

Industrial is where my money goes. Plenty of mom and pop sellers, all my stuff is 5 year fixed debt. 


 What is your preference , small industrial condo type or bigger warehouses ? 

Post: Multifamily vs. Commercial

Sonny DhillonPosted
  • Investor
  • Manteca, CA
  • Posts 37
  • Votes 10
Quote from @Ash Patel:

@Gino Barbaro - I have been in commercial for 10+ years and started with a $230k mixed use building and built up over the last decade. I started small in each asset class and learned from making a lot of mistakes. I am not advocating over leveraging or even risking other peoples money. I have always been an advocate of start within your comfort zone. The one thing I advocate to all that I mentor is to stress test deals. How much additional vacancy and rent decreases can the deal handle? It seems that some in the MF world believed the arrow always goes up and to the right. There is no doubt that a syndication bubble has been brewing for years. The fact that I hear, "we never exptected the fed to raise rates" is shocking. I think the MF space is overcrowded and it has become too easy to become a MF syndicator and put other peoples money at risk. People were bragging about OPM as if it was a badge of honor vs. the highest level of responsibility. We are seeing the fallout with paused prefs and capital calls and I think MF has a lot more carnage on the horizon. Don't get me wrong, CRE will certainly take a hit but when we buy value add at 18% coc, we have the wiggle room to absorb economic headwinds. Respectfully - Ash


 Totally agree with you Ash , MF syndicator bubble is going to be busting ,they been good sales people to convince alot of passive investors for false dreams. I'm amazed them buying properties at 3-4 cap rates with baseless proforma's which are coming to halt now.  

Post: How to find local self storage for off market deals

Sonny DhillonPosted
  • Investor
  • Manteca, CA
  • Posts 37
  • Votes 10
Quote from @Tom Conant:
Quote from @Ronald Rohde:

Whats wrong with google? Strong is not the same as non-existent?


 Nothing wrong at all.  Right now I think that looks like my best option.


 Are you planning to do wholesaling or buy for yourself ? imo wholesaling is not a good idea in big commercial properties, usually commercial sellers don't want to go through this Hassell. 

Post: Strategy Advice: How to get to $50k/Month In Cashflow

Sonny DhillonPosted
  • Investor
  • Manteca, CA
  • Posts 37
  • Votes 10
Quote from @Aaron Kaminer:

Hello all, 

I am a partner of a real estate investor group working out of Oklahoma City. We have a 5 (or less) year goal of hitting $50k/Month in passive income, via property cash flow. I am trying to map out a reasonable/practical strategy for achieving this goal. Here are my thoughts. 

1) In order to scale quickly in the beginning, without leaving a bunch of money in our properties, we are using the BRRRR method. We have been purchasing homes at the $50k mark, investing around $40k in rehab, and cash-out-refinancing at an ARV of roughly $145k, taking out 75% to pay off debts. With this, we break even on the refinance and end up with no money left in the property. In these scenarios, we still have 25% equity in the property and it cashflows. This is great, however, cash flow is roughly $200 for these properties (when we calculate actual cashflow, including cap-ex, vacancy, repairs, etc.) Considering our goal, we would need to do this 250 times. This vehicle/style of aquisition is working nicely for our short term goal but its fails to deliver on our long term goal, most likely due to the 5 year (self imposed) time constraint. That would be a lot of properties to process in that relatively short amount of time. Doing so would require more infrastructure and thus, more expenses, etc.


2) In light of this, it seems obvious to me that commercial properties are the most practical way to hit such a high level of monthly cashflow. Not that you couldn't simply BRRRR/purchase 250 SFH.. but that is a lot of property and comes with its own risks and difficulties. So, the long term goal must be apartments (assuming we want to stay in the residential/rental lane.) I can imagine owning 5 50 unit properties.. or something like that. Assuming these properties also cashflow at a rate of $200/door/month we would hit out goal. But, how would we purchase these expensive properties?

3) I am thinking the best way to purchase those may be by leveraging the equity in our BRRRR SFHs. Example: We continue to BRRRR properties for a year or 2. Perhaps we accumulate around 25-30 of these (at our current pace, this is very reasonable.) We save all of the cashflow along the way. We pair that cashflow with a bunch of refinancing OR dispositions in order to pull the equity out of our SFHs and move it over to a down payment on an apartment. Basically, we leverage the equity in our SFHs to invest in commercial properties - making our BRRRR strategy on SFHs an equity game.. and our commercial apartment strategy the actual cashflow mechanism.

Of course, we could just skip #1 (the SFHs) and start with purchasing apartments in the first place. Maybe even a BRRRR apartment.. and this is not off the table. But those deals are much more rare and financing is more difficult for us. So, I do not want to bank on that. We will take it if we find it (and can manage to pull the deal together) but I dont want to rely/hope that we will find such a deal.

These are all just thoughts on how to get to $50k/month in cashflow, for a group of particularly determined individuals, in 3-5 years time. I am posting here for feedback. Tell me what you think. Do you see another path? Has anyone here achieved such results? I am looking forward to picking this apart. 


 I would recommend Mobile Home park if cash flow is your only intention as they are very good vehicle for cash flow.