All Forum Posts by: Tyler Warne

To CRM or Not to CRM

Any input about a favorite CRM or one to avoid for a Realtor. Specifically Commercial. Any insight is welcomed! Thank you community! 

Thank you everyone. They are on a month to month, and the house is being sold. Sounds like, according to legal counsel, that they likely will not have protections in our state unless they lose a job due to Covid. Obviously this is still a very touchy subject and we will be careful. Thank you everyone for the thoughts. 

Thanks everyone! 

A friend has a tenant that is not leaving and is on a month to month. He would like to sell the house but can't until she goes. He is concerned if he pushes too hard that they could have some rights given the mandates about evictions. Does anyone have any ideas? I suggested that he find her something to rent, then give her cash for keys. 

-Tyler

Which market? I have a few in Helena, but there are so many markets and we have Bozeman where I see flips that have $400,000 spreads to rural areas where it is easy to find a 1% deal, or Billings which has had some market decline since oil has sucked so much. Let me know what you are looking for and maybe I can help you. 

Cash is a restraint. Restraints can be good. I lose weight and spend less because of restraints. 

Like a credit card, debt can free you from a restraint. Let us not forget though, with no restraint it is easy to be lazy, therefore, subject to more risk. Personally I am large equity positions with some financing. It allows for some leverage and accelerated growth without betting the farm. 

Cash is king in negotiations though. 

That said BRRR or other methods that recycle cash, stabilize the property and then add equity allow you to build faster. I would say that there is nothing wrong with this either - just be well funded.

This is your journey though. 

My goal is to sell 24 million in CRE this year, hire 1 full-time residential appraiser and have more than 25% down for a commercial building for my business. Looking forward to making this a reality through hard work, reviews of my goals and reflection on mistakes. Just submitted bids on listings of more than $7,000,000, and have several listings now, as well as buyers in the pipeline. 2020 is already a great year!

-Tyler

Thank you all for the feedback. In this case it is a very hairy deal, they own the land, the buildings, and the business and there was a gas spill about 40 years ago which is being monitored, but there is ongoing litigation - with completion on the horizon. It has a 22 room hotel attached and then there is also a restaurant that is across the street. It is a hard stop corner for an interstate exchange in one of the higher end markets that is nearby and there are some potential major players that would come in and pay cash for a deal like this. I spoke with another operator that recommended that I should price the business 5 times earnings (20 cap) with the frivolous costs pulled out. I also spoke to an appraiser in the market for similar properties and he uses a Gross Revenue Multiplier because good operators will use their own business structures so they just need to know what kind of volume it does on its own. 

Thank you all for your insight and looks like I will be busy with this one! 

I am working on listing a gas station/hotel and looking for additional information about pricing them. If anyone has any info, please leave your knowledge below! My client is looking to sell their business, it grosses about 7 Mill annually but they expense everything, which is what typical operators do. Thank you for any additional information. 

What do you do? How do people get this thing rolling? I have a business, am buying another RE sales business, need to expand my operations, and need to find good employees, all while saving money for another buy and hold - personally, and finding a commercial building-professionally, balancing family and fun. What do people recommend? Is there anyone interested in starting something like the group that Brandon and David are a part of (Gobundance)? Something for investors and business owners that are a little farther along their journey? 

Another seemingly difficult hurdle is living in a remote-ish location, Montana. But the internet keeps us connected so well...

I did enjoy the group which was facilitated through BP, but I thought that these folks were doing good and are all on their journeys, but it wasn't a specific group of people that were into the same things or overcoming similar obstacles and everyone was mostly pretty fresh. 

I want reliability, accountability, maybe some skin in the game (cost and time), and/or an annual retreat. Looking for an option, or if anyone has one they are a part of that I could join. I also don't want to do something that is out of the wheelhouse, or that is too general about just getting bigger, I want specific RE and CRE.

Leave a message if anyone is interested in starting this or would like to begin the process. 

Could you rent 3 units at market rate and have a roommate in your owner occupied unit. Obviously you would need to be there when in town, but a roommate might check all the boxes. You should consider, however, the cost of the discounted rent for a roommate or a vacant unit prior to analysis en lieu of of investment financing. The investment financing, even with a higher rate, could give you a better return. And a way higher return if you consider the cost of doing something ethically or morally wrong.