All Forum Posts by: Tyler Kastelberg

We're looking for an awesome people-person with a knack for commercial real estate to join our talent team!

Bullpen is the workforce behind the commercial real estate industry. We're building a network where industry experts can find quality work opportunities on a project, part-time, or full-time basis -- on their own terms.

We've built this business on a foundation of doing right by employers and our talent -- an approach that our new team member will need to embrace. Customer experience is far more important than profit.

This is a MASSIVE opportunity to grow an extensive network of real estate investors, developers, brokers, and capital markets professionals

A few details ...
- Your compensation will be made of a base and bonus, with a target total comp of $120,000 per annum
- You'll work from home and manage your own time
- You'll report to our Founder/CEO and work with other Talent Team members
- This is a FULL TIME job for a US-based person -- let's do this!

Calling software engineers who love real estate and are local to the bay area. 

I'd like to bounce around a few software ideas with you, regarding underwriting / data analytics for commercial real estate deals. 

Reply to the thread or drop me a DM if you'd like to connect!

@Marcus Auerbach

Very interesting read! Thanks for sharing.

@Sam Fogelson

Give us a little more context. Where is this property? Are employers moving in or moving out? 

Sometimes a drop in rents can be seasonal. Sometimes a drop in rents is a symptom of a much worse economic trend in an area. Your decision whether or not to sell is going to be a function of macro-economic factors.

@Liam M.

Definitely get leases on all units. 

Check the current leases for automatic renewal clauses or a clause that states the lease rolls month to month after expiration. 

Get a good property manager. I use KRS in Hampton Roads.

@Davis Barnes

This question greatly depends on the size of property you are pursuing. 

In a large multifamily, you'll need a partner who can sponsor your debt.

For a small conventional property, you'll need to tag team with a friend or family member who can guarantee the debt.

Partners are your way to go ...

Unless you can talk the seller into financing the deal.

@John Kwon

A higher borrowing rate will do two things:

1) Increase your debt service

2) Decrease your property value

The greater period of time it takes for you to implement a BRRR project, the greater interest rate risk you're taking on the project.

When I talk to people about BRRR, they are typically doing it over a period of a few months.

@Krisleigh Hoermann

I wont go too far into the numbers, but I will note that unless you are bringing a tenant to the property at purchase, you'll need to assume one to two years of vacancy on the commercial space. You might consider running this model as a flip to see if it makes sense economically. 

It's best to not assume a future lease in your purchase value ... hard to do on small properties but very important to avoid getting trapped.

@Andrzej Slugocki

My first properties were condos, and they saved me a ton of heartache when I didn't know what I was doing.

Why?

Condo HOAs cover lots of capital expenses that I wouldn't have thought about as a first-time investor in a SFR or small multifamily.

Condos have some downfalls:

1) Terminal Value - The terminal value (or future sale price) on a condo will be closely related to the surrounding condos. You can't implement an elaborate renovation and expect a large "above comparable" sale price

2) HOA Rules - Homeowner associations have rules that might restrict how you use and lease the property. Some HOAs restrict rentals to a certain number of condos in the community. Others have rules about the type of renovations or changes you can make to the unit.

Another legendary response from @Brian Burke

Would an open source repository of such opportunities violate laws about solicitation of private placements?