All Forum Posts by: Tanh Truong

Hey Jane, have you tried reaching out to a local REIA?

There are hundreds of ways of looking at an investment and grading it. I think it really depends on your goals, if you're content with where you are and what the cashflows are doing, then keep on trucking along. If you're looking to grow, imho I think the ROE is on the lower end and you can utilize that equity in a better manner (i.e. selling and putting the capital elsewhere for higher returns or LOC).

I would take a look at their lease and see what the terms are. If there are still time on the lease, that should be honored. I would also look at the termination clauses, because in most leases you can only evict a tenant if they're in default, etc. 

I'd also echo what @Nathan Gesner asked. If you're able to work out a deal with them to purchase the machines, terminate the lease and become an operator, then so be it. But, if the numbers make sense, I would keep them as a tenant. Could you sell them newer machines? Could you hold out on the lease so that when their time is up, you could then occupy and operate? 

Have you considered syndications? 

Nathan, I'm a part of a non-residential CRE mastermind. We focus on all CRE that's not multifamily. If I remember correctly, some of my colleagues have invested in office spaces. Not sure if the mastermind is for you, but could probably connect you with the guys who have done offices.

I'm a part of a mastermind/coaching program that focuses on non-residential commercial properties. Our coach/mentor has over a decade of experience. 

@Ali Nurmohamed One-time. Also worthy to note that different brokers have different payment structures. Sometimes you'll pay the one time payment upfront and sometimes they'll have the payment spread out over several months. 

@Ali Nurmohamed, yes @Michael Dumler is correct. Keep in mind, the cost associated with hiring a broker as well. Most often it's 6% of the base rent (ie. if the lease is for 3 years at $10k/year, their commission is 6% of $30k = $1800)

Owning a commercial property is definitely different from owning a residential property. Firstly, you have different types of tenants. These are tenants that are business owners, and as you mentioned professionals. In residential real estate, you are dealing with residential tenants and dealing with residential headaches. Leases are different - longer term and they outline the different responsibilities of the landlord and the tenant. Easier management, possibly, but it also depends on your systems in place. Sometimes, the improvements of the space isn't all the landlord's responsibility either. 

Hannah, pleasure connecting! I think you already have a lot of knowledge from the development side, which will be super beneficial in the commercial world. I'm curious to hear what you believe the most challenging aspect is when it comes to getting zoning approved or approval in general for a specific project (i.e. self storage, multifamily, HCV, etc.)? 

I've actually met quite a few investors from the Bay Area looking to invest out of state. I will say David Greene's book on Long Distance Real Estate Investing is a great starter. Networking and building a team in your area of interest is a must. 

As for syndications, Joe Fairless has an awesome book on syndications. I've done a few myself and happy to elaborate on the experiences. And lastly, for ADU developments, I cannot speak much on as we don't have those - to my knowledge - in Ohio. I've heard of ADU's primarily in CA.