All Forum Posts by: Sean Hugo

@Ronak Shah yes having income coming in throughout the month on a regular basis would be nice. I have an RV Park that is attached to one of the self storage facilities and that is one reason I like it so much is there is income coming in throughout the month.

It would seem to me also by billing on the anniversary date would increase the speed of cash into the busienss, since you would be billing for a full month rent when a new unit is rented instead of prorating it.

When I was looking at a recent acquisition I went a rented a unit at once of the competitors down the street that was a REIT and they billed based on anniversary date. That is what really made me start to think about it more. I know they have loads of data and there is a business reason they are doing that.

I originally set it up to bill at the first of the month because of convenience and I was self managing my first facility. I now have six facilities and three of them a larger and have full time on-site managers. With over 1000 units now I am starting to think that change could result in a big increase in when cash comes in the door.

Are you billing first of the month and pro-rating the first month or are your using anniversary billing?  I would like to hear your reasons for billing when you do and the pros and cons of each. Thanks.

Does anybody in Oklahoma know the rules regarding RV Pad evictions? I have a tenant that isn’t paying rent and is parking cars on the side of the street which has lead to noticed from the city.

@Justine Scheuher I am a CPA and have had my own practice for 18 years. It might be a little bit high of you are a single member LLC where you just had to file a 1040 and associates schedules. However, if you were filing a 1065 or 1120s plus your individual tax return it is reasonable.

I am biased... but a CPA can save you a lot more than they will cost you. You need to meet with your CPA at the very least in Q4 to see where you are at tax wise. Also, before you complete any transactions you should meet with them. The worst is when a client would come in and say here is what I did what are the tax consequences.

Bottom line the advise you receive throughout the year is where you are going to get the value over paying less for someone to just complete a tax return based on figures you provided.

What are people using to allow you to text customers who are behind and have a link in the text where they can make a payment?  I am currently using webselfstorage but will be making the switch to Storedge before long.  Thanks.

Very profitable and easy to manage boat and RV storage facility for sale in Oklahoma.  This property requires very little of the owners time to run.  This property has historically been over 90% and currently is around 95% full.  The property has 56 enclosed boat storage bays, 20 covered bays for RV parking.  The property also has 50 gravel uncovered parking spots.  There is an office that is rented on the property for $750 per month and a house that is rented for $1000 per month. Yearly gross income is over $120,000 per year with net income of over $93,000.  

The property has upside in the rents are slightly below market value and could easily be raised when purchased.  Additionally the new buyer can convert the gravel parking to covered parking and increase the rents received from each of those spaces by $70 per month adding an additional $3000  or more of income per month.  

Asking price is $1,311,000 which provides a 7% CAP. This property could easily be increased to a 9% CAP or greater by increasing the rents and installing more covered parking.

I own a 7200 sq ft retail center in Oklahoma with no debt.  I had someone that wanted to know if I would sell it to them.  The price they offered was at or slightly above market $822k. The would be putting $90k down.  Their financing wound up falling through so he asked me if I would owner carry it for two years until he could build more equity in the property to obtain permanent financing. 

I would like to do a 1031 exchange and already know the property that I want to purchase. After doing some research in order to owner carry the loan I have to come up with the remaining $732k to bring to closing since I will be the bank.  I don't have that kind of cash sitting in an account but what I do have is a lot of equity in another property that I could refinance to get the money.  The problem is I will be refinancing from 4.25% on a 15 year amortization that was locked for 10 years to around 6% on a 20 amortization locked for five.  The buyer has offered 7% interest rate on the loan. 

Any private money lenders out there interested in this deal?  Also would be open to other creative ways to structure this while still being able to do the 1031 exchange. 

From everything I have read they didn't repeal the capital gain exemption.