All Forum Posts by: Steve Osowicz

@Pat L. I had hoped that a Planet Fitness would move into the space, but they ended up going about a half mile up the street, funny you should mention dollar general, they demolished their old location here and moved it about 5 miles away (closer to the building I am talking about). 

@Omar Khan I am thinking anything held long term. Outside items (like furniture) are subject to expanding and contracting as well as anything subject to moisture or mildew/mold. 

There is probably a good usable acre to put in outdoor storage as well, the climate controlled storage I am estimating 10x12 unit will be around $150 per month. Rough numbers are monthly income of $12,300 and expense of $5,350 (with me doing any of the office work at 10% vacancy). This is without the exterior storage units being built/filled. At this level of investment I would likely keep the property. 

@Omar Khan If it were climate controlled storage, I would install a kiosk system and as long as it would require a minimum level of involvement I would be fine with that indefinitely. 

I have been wrestling with that, the current operators in the area are focused on the outside storage which is at a lower price point, I am considering the fact that some people would like to store items that may be sensitive to changes in temperature. 

I have been approached about a "sports complex" that would be more of a training space/batting cages/karate studio and trying to partner with the schools. The issue is that the ceiling height in most of the sq ft is only 13 ft (the garage area ceiling is probably 30 ft but only 1400 sq ft). So basketball and gymnastics are out due to height. Also other entertainment venues like skating rink, but these are places I have no experience with so I am very hesitant about those. 

@Omar Khan I have done a preliminary cost estimate of the inside storage with a commercial construction contractor his estimate was around $100,000 to build those units inside. The good thing is that it can be run on a mostly automated system which I like. That would be acceptable, but I wouldn't want to put any more than that in the building. 

Based on my valuation and appraisals, I bought the property as a value play so if it sold/leased that would be fine, but if it doesn't move in the next few months I plan on doing some buildout for a business or lease.

@Steve McGovern Well, the information would not be as accurate as the area is currently experiencing growth so looking at the raw data it is misleading. The city is Shelbyville and closest Metro is Louisville/Jefferson County which seems to be pushing out into Shelby County.

The sample size is small, given the population 30,000 for the 40065 and projected pop of 33,500 in 5 years.n Less than 4 miles to the Interstate (I-64 in between Louisville and Lexington) and less than 3 miles from "downtown area" which again given the pop, is not exactly a bustling center of progress, though it is being revitalized. 

Several storage units are currently available and one was just constructed (and filled) and the owners have purchased more land to build more units. 

Currently the unemployment is lower than 5%, this is due to many plants and factories in need of workers and the housing is at about an 800 unit deficit (with 2 new complexes). 

In terms of zoning the building has been a suit factory, bowling alley and most recently a bingo hall, the zoning is "C" which is high use, but obviously not as high as Interchange. I sit on a couple of boards and feel confident I could get most acceptable uses through. 

Hello,

I own with a partner a commercial building here in Kentucky that we have done some work on, had an LOI and prelim contract but nothing has come through. It is about 20,000 sq ft with a parking lot and about 1.8 acres, all open inside with 4 bathrooms, 4 entrances, it's an old bowling alley (none of that remains, lanes, etc.) Does have fire suppression system for restaurant space.

I have had some ideas on what to do with it, just looking for input on those or any fresh ideas, or we may just keep it for sale/lease. 

1. Climate controlled storage - though the metal to construct the individual units is pricey, thought about starting there and then constructing outdoor units once it was bringing in money. 

2. Event center for wedding receptions, class reunions, etc. I feel like this is a going to involve more than what I am wanting to do, but I am thinking I could get someone to run it and pay them per event.

3. Flea market, lease units (about 100 would fit at $100 per unit) would need employees which I like the least of all and doesn't really cash flow.

I know this won't apply to most of the members here, but just as an FYI, Xceligent has closed up shop and is filing Chapter 7 liquidation. This follows their legal battle with CoStar. 

@Renee R. I am not sure about NH, but in Kentucky it is not required that a landlord accept Section 8 applicants. As far as I know nothing federally, only local or state regulations would make you evaluate an applicant, but not necessarily accept, they have to go through the screening process like everyone else (credit, criminal etc.). Section 8 typically requires that the rent amount be within their guidelines or the tenant pays part of the balance, the property passes the Section 8 inspection and Section 8 approves of the landlord's lease. *not an attorney opinion, just mine*

@Tomo Iikubo Undoubtedly people will be conflicted when it comes to a situation like this. Probably should not have continued to accept personal checks and only accept a cashier's check or money order (or of course cash which personally I don't like without the ability to track). Your correspondence should be as you said factual, though some landlords are very friendly with tenant, my opinion was always that this is a business transaction. 

The tenant is not my friend, we are two parties in a contract. The landlord provides a safe secure place to stay and the tenant pays for said place. 

If they cannot pay, they have to vacate the property, again it is nothing personal it is a simple business transaction. 

As a final note, judges are typically slow to evict during the holiday season I have found...

Hello @Duane Smith I was previously licensed Series 7 & 66, Life & Health so you have a great background in terms of knowing what is required. Though I thought selling a tangible product (real estate) was much easier that something intangible (stocks, mutual funds, etc.). Commercial, you should expect to spend a good amount of time prospecting and networking. 

Contact commercial brokerages around, larger and smaller boutique firms, interview with them and get a sense of where you want to go. 

Each firm is different in what their fees, splits are. 

Call and set up appointments with different firms.

Count on spending some money and potentially not making any money in year 1 (again potentially), commercial properties while typically much higher, also tend to be for sale much longer and the time from LOI (letter of intent) and closing can be substantial.

Good Luck!

Hello @David Espana service animals can present an issue when it comes to insurance and liability (not to mention if you don't accept pets), HUD can make an exception in a few cases. If having a "dangerous breed" is against a local law or ordinance, or if doing so would cause undue hardship to the landlord (i.e. getting your insurance canceled), or if there are a lot of children around, or someone who is allergic, those are just my opinion of what may constitute an exception. Here is the link (service animals below) to a pdf of the rules (though it is from 2013 so you may want to hunt up to see if there is a more recent one). Make sure you communicate with HUD though and of course get anything from the in writing. Service Animals