All Forum Posts by: Thomas Gray

How old is the pluming in the house? Its not uncommon for galivanted pipes to get corroded/rusted and taint water. One sign that the pluming is corroded is low water pressure? When severely corroded the pressure will drop from room to room as it travels further. 

My other thought is that their may be a cistern or holding tank that needs replaced/cleaned. 

Hello Sophia, I'm curious if you purchased the house? Renting to hospital employees is a very strong strategy. I have a few friends that invest near hospitals and I've only heard good things. Something to think about is purchasing a multi-family unit and living in one space and renting the others. Lenders can use income from the investment to help you qualify for the purchase. If you decide to owner occupied the interest rate will be lower than non-owner occupied property. I recommend finding a rockstar lender that will get you approved to purchase. 

Greeting Paul, the bid you got for the ADU conversion is decent depending on quality of work and design. My recommendation is to get 3 bids and compare them. Key is to make sure your getting similar quality and end product. Clark county has made revisions to the ADU regulations in the last year along with State Governor leading way for ADU regulation reform to make it easier to build a ADU. One way to reduce cost of the bid is to pay out of pocket for permits, connection fees this will reduces mark up from contractor typically saves about 10% on those cost of those items and saves you a few thousand.

I'm currently working on having a 1000 Sqft ADU built. My construction agreement includes everything, plans, permits, material, labor and its $155 a sqft without sale tax. This is new construction, with basic appliances, cheaper finishing touches.

Is the water discolored using the sink or the shower? Looking at the tank of the toilet it needs to be cleaned out. 

If the house is on a well and you want to have your system tested i recommend local well drillers, they usually install filters, softeners and other systems if needed. 

Investment Info:

Industrial commercial investment investment.

Purchase price: $2,500,000
Cash invested: $750,000

Purchased to use for manufacturing and holding inventory. Currently updating building before moving into the space. By purchasing it reduced lease fees for investor on other properties currently occupied. This warehouse has tall ceiling that will allow for tall racking system that will allow investor to reduce cost and overhead.

What made you interested in investing in this type of deal?

Turned a Long term tenant paying more monthly on a lease than it cost monthly to purchase a warehouse in better condition. The overall result in lower overhead costs.

How did you find this deal and how did you negotiate it?

Property was found on the MLS. It was listed and had a few interested parties.

How did you finance this deal?

Used Chase commercial lender and used a conventional 20% down payment.

How did you add value to the deal?

I represented the buyer, in a multiple offer situation. Negotiated a 4% price reduction due to condition of property. During feasibility ordered a phase 1 Enironmental report and walked client through the process.

What was the outcome?

Turned a tenant into an investor by purchasing warehouse and to stop renting. The leases in place at other properties allows for tenant to sublet the properties. Now my client has asked me to lease out (sublets for the next 10 years) on 2 large warehouses. Client is going to make a healthy spread that will significantly discount the purchase of this new investment.

Lessons learned? Challenges?

Partner with experts. key is finding a skilled lender that can close deals with firm deadlines regardless of scope or complexity. Fire marshal requirements very depending on use. This warehouse was racked high for beverage distributor and my client is storing electronics in the same space but is required to improve current fire suppression system before occupying the space. Schedule the Marshall to walk through a space during feasibility to prevent expensive updates.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Worked with a great lender Joe Plucinak Sr.
Relationship Manager
Business Banking
Bank of America