All Forum Posts by: Scott Mac

Hi Shiloh,

What you're saying reminds me of the old (1947) movie "Life with Father".

No matter what the poor guy does, he can't keep his monthly budget under control.

Pug Dogs and Rubber Tree Plants, etc...

Scott...

Hi Harry,

Well I went to dinner (McDonalds) and thought about this some more.
It's in your neighborhood and at first glance you're interested in it. 

It will ultimately come down to a couple of factors, will the owner accept your offer based on the numbers you need. Cash on Cash, etc... and can you get the deal together (down, financing, closing costs, etc..) to buy it.

Don't buy on emotion, buy on the numbers you want to get.

If the Seller agrees to your numbers, it's best to go through it with a commercial multi-family property inspector. Know its flaws from a disinterested 3rd party.

Now if the seller doesn't like your offer, but you like the property because it's in your neighborhood and for whatever reason you want to own it--keep it on your key ring so to speak. 

Meaning, keep an eye on it over the years. The economy fluxuates and so does net income/price, and there may be some time in the future that this key ring property could be yours.

Just some more of my thoughts.

Good Luck!

Hi Omar,

Great property, and good hustle to get the money!

I have a question though.

How long did it take you to walk 138 units?

Scott...

Hi Harry,

At first glance I see a (painted) brick, pitched roof, Class C in what the broker calls one of the most popular, stable, and safe neighborhoods in Atlanta.

My first thoughts are, is this a Class C in a Class B neighborhood, are the rents under what they could be, and what about deferred maintenance (especially inside the units).

Good Luck!

Hi Teresa,

You should talk to an attorney about this vs getting an online consensus.

If the lawsuit lists an LLC as the owner you probably won't be able to appear for it, it will probably have to be an attorney.

You should contact an attorney ASAP and not post details online about this.

Good Luck!

Hi Wesley,

There are furniture repair finish restoration contractors who use hot melted color sticks and stains to blend scratches in fine furniture. 

The finish on the floor is much harder than the finish on fine furniture, but they may be able to quickly and cost efficiently blend the scratches for you.

Also on the cheap you might be able to get a scratch blend crayon from the floor manufacturer for your color, although don't expect the results of a professional blender.

Just a thought.

Good Luck!

Hi Chihero,

Don't forget the SEC requires the PPM to have a "Prior Performance in Raising Funds Table" and an "Operating Results of Prior Programs" table that all investors must be given.

Also the SEC assumes Accredited Investors can handle losses if they occur and Sophisticated Investors can asses the risk for themselves.

These opportunities are not open to the "General Public" for those reasons. The general public is protected.

Also without a more experienced Co-Sponsor on a deal, a 1st timer will have a hard time qualifying for a Fannie Mae Loan which is used a lot on Syndications.

There is always risk in this business, nothing is guaranteed. Even long term operators get bitten sometimes.

Ultimately it's up to the SEC allowed investor (or his financial adviser) to evaluate the risk of the offering based on the SEC required offering documents before wiring his money. 

Actually right now (post bubble) it's more regulated due to the borrowing restrictions.

The SEC protects the public enough, while at the same time letting deal sharks, and their backers, try to make profits.

Anyway, that's how I see it.

Good Luck!

Scott...

Hi Nik,

He may be worried about Tenant Synergy.

By Synergy I mean Tenant Mix:

• Shopping center A has a Big Grocery Store, and a Burger King, and a Pet Smart.
• Shopping center B has a Storage facility, a Burger King and a Pet Smart.

All else being equal, which Burger King will probably have more sales and be more likely to continue with their lease there?

When sales fall off tenants do not always renew, and many places have secondary tenants feeding off the traffic from the Anchor tenants. Such as tax preparers, sandwich shops, etc.... that will really suffer if traffic volume dries up.

If this is his thought on this, it comes down to preserving the "Asset Value" of the shopping center through tenant mix.

Storage units seem to be low volume traffic draws compared to a Home Depot or something like that. Count the cars per day.

Good Luck!

Hi Kanica,

I am going to respond "tightly" to your post (in a positive manner) about potential investors only.

( @ Kanica Gooden "no one reaches out to invest or they lose interest when they hear my minimum investment criteria. I only want to work with accredited investors and I am running in circles trying to figure out exactly how to market to them." )

Questions to ask yourself:

1. Do you have access to people who are accredited? Friends, family, business associates, country club members, yacht club members, Long term Senators, etc... (if so how many and how regularly do you see them). You may not need this, but it will probably make things a lot easier.
2. How many of them are liquid enough to park the investment amount with you for whatever period of time. (some of these people live very close to their means--big stately homes, Porsche's and a stable of ex-wives takes it toll on investable capital) Not every Duck is a Mallard so to speak.
3. Do you normally run in "their circles" or are you "a salesperson" to them? (nothing wrong with either, it just sets your strategy for how to move forward).
4. Why should they trust YOU can "make this happen" and not lose their money?
5. How much money do you need for your investment model? (How many people will you have to line up to make this happen?) Your Goal amount of people.

You're in Washington DC, That type of person is there. But like fishing, fish rarely jump into the boat on their own to see if you have bait. You have to take the boat to the correct pond and use the correct bait for the fish, and even then every fish in the pond will not bite on your hook.

There are other ways to do this, but if I were in DC, I'd try to run in the same social circles as those I wanted to do business with--on a regular basis. There is a lot of money in DC, you just need to find a way to be known by the right people. (This is one way of finding people, there are others).

(“Whether you think you can or whether you think you can't, you're right.” Henry Ford)

Just my 2 cents...

Good Luck!

@Tandi H.

Hi Tandi,

What about calling the PD and reporting the drawers stolen based upon the value of having a contractor replace the cabinets with comparables, including new counter tops, and sink hookups? 

If they are gone let them explain to the PD where they are.

Good Luck!