All Forum Posts by: Trevor Fulkerson

Quote from @John McKee:

The problem is that you are stuck in a small town which means there is not enough density to support multiple flex space tenants, so you may be stuck trying to find one large tenant.   Make sure you study the demographics and demand closely. Call every broker in town for their opinion.  There might be a reason that this property has been vacant for years.  Not all industrial is hot!  There are some real duds out there.

Thanks for your thoughts John...I agree that's definitely the challenge. I'm still early in the process, but I suppose that's the whole thing, to see if there's enough meat on the bone to justify all the obstacles. We'll see!

Quote from @Dennis Muno:

I think with this project you should decide what the need of the community close by will be. If your property can satisfy a need i.e(accomodation, shopping center, office building etc), then you will be able to find a use for this property that will be worthwhile and could be profitable.

Also, you should think hard about the hydrogen plant. What will worker there and the talent that will be coming there need? If your property could align with some of their needs that will be a great place to start.

 Thanks Dennis. Yes I'm starting to talk to the local government and Business Development Corp to see what's most needed. And I agree about the hydrogen plant...it's been tough getting in touch with anyone so far, but I'm going to keep plugging away, maybe there's an opportunity there since the building is pretty unique in the area. 

Quote from @Matthew Drouin:

@Trevor Fulkerson

A few things:

1.) You are right to seek a partner that brings experience to the table! Especially if you buying something that is vacant etc. I think that would be non negotiable.

2.) What’s the environmental look like? I’m assuming because you are going to want this thing bankable eventually.

3.) Have an extended due diligence period. Like 1 year on a property such as this. If you have to negotiate paying operating expenses it might be worth it.

4.) Hire a national broker to lease the facility. And one that had an industrial division.

5.) And because this is in a low velocity market, 2.5 hours from a metropolitan area, I wouldn’t close on it without some kind of specific direction in terms of who’s going to pay you to lease the space. Or at the very least, could you get some income coming in on the space to at least cover your carrying costs. Sometimes we think that we are buying a property so cheap that nothing could possibly go wrong. But I’ve seen this happen before with investors and they burn through a lot of cash, more than they think!

 Thanks for your response @Matthew Drouin, I appreciate the insight. Absolutely, my plan is to not close on it if I can't nail down exactly what to do with it (or ideally already have a lease or commitment on it). I do have pretty good relationships with the local city and government, so that's a plus. But I definitely think finding a more experienced partner will be huge, potentially even make or break for this deal.

To be honest I have mixed feelings on the larger brokers...I'd love for someone good to take it on but most of the people I've talked to in DFW or OKC aren't particularly interested in dealing with the small town (admittedly it's early and I've only talked to a handful so far). Any thoughts or recommendations there?

Quote from @Ronald Rohde:

Is it listed online? Are you paying cash? Long DD period and terminate if you don't lock down a tenant.

 Thanks for the reply Ronald. No it's not listed online, yes I'm paying cash. I do have a long DD timeline with option to extend as well. And that's exactly what I was thinking, worst case I can't find a tenant and just terminate. Thanks for your insight. 

Hi all, 

I've recently gotten an 80,000 sf industrial property under contract in a small town in North Texas. It's decently located, about 2.5 hours to DFW, OKC, and Lubbock. It's also about 10 or 15 minutes away from the forthcoming $4 billion hydrogen plant that was announced a few months ago. 

It's been vacant for a number of years, and definitely needs substantial cleanup and rehab, but the bones are great. I own some other property in town, and I'm on good terms with the mayor, city manager, economic development committee, etc, so I think I'll have their support if I can nail down a solid plan. 

My question is, does anyone have experience finding a tenant for such a large building in a smaller town? I'm pretty good at finding lists to reach out to (of manufacturers or similar companies), but I'd like to focus my efforts a bit more if possible. I'd also potentially be interested in partnering up with an experienced industrial investor if it makes sense, since I haven't done something quite this large before. 

There are certainly going to be challenges, but I think there's a lot of opportunity as well if I can get everything lined up. 

Would love to hear any thoughts, suggestions, ideas, partner referrals, etc. Thanks!

That's a great idea! I will look into this week. I've already started calling local banks, might have one or two good leads that way. 

I've searched around on BP a bit already, as well as Private Lender Link...do you have any recommendations for how to find lenders interested in RV parks? (on PLL there only seemed to be 2 when I filtered it by property type - maybe there's another tip on how to find them?)

Thanks!

Originally posted by @Jo-Ann Lapin:

How exciting !!  With the right management location and good utilities they can be cash cows . Happy to network and assist .

Thank you! It seems that this is certainly a unique asset class in the eyes of many lenders...do you happen to know any that are interested in lending on RV parks?

My partner and I currently have an RV Park under contract at $590k. It has really great cashflow (even at a lower occupancy) and a lot of upside.

This is my first RV Park deal, and so I’m looking for advice or referrals as far as financing.

I’ve looked into SBA but I think it will take too long (and I’m not sure that the seller has all the documents needed anyway).

I’m open to private or hard money, or bridge financing, as we can support a higher interest rate for a while while we continue to stabilize the park and then refinance.

Any thoughts?

I Look forward to seeing everyone tomorrow night! Any questions or comments about anything, don't hesitate to reach out. 

See you there. 

Trevor

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