All Forum Posts by: Tyler Shoaf

Quote from @Account Closed:

Who owns the parking lot? Is it written in the deed or somewhere that it is shared by the other owners? Is there some sort of owners agreement that outlines the maintenance and upkeep of the common areas? I could imagine it would be set up as some sort of  annual association fee that is put into escrow to pay for repairs and maintenance, landscaping, snow removal... Even the sewer line may be shared. I have no experience it this kind of project so there's a good chance you can ignore all this.

 all great questions thanks! ill be meeting with them to talk about all the comments and ideas this conversation has brought to mind! 

Quote from @Ronald Rohde:

Sounds like an OK deal, those office condos are very hard to sell. I see them listed all the time.

I'm leery of 7% gross management fee, market would be closer to 3-6% on a NNN...

Its 3 separate brick structures that share a central parking lot to give you an idea of the lay out off one of the main streets in that town. Ok thanks for the heads up on the fee, but how do you calculate or decide on the right fee fare for all? any thing I should learn or look into? 

Quote from @Account Closed:

Important things to look at: 

How many years are remaining on the lease, it's really expensive when a commercial tenant leaves. It can take a couple years to find a new tenant and when you do, there will be TI (tenant improvement) costs.

Does the rest of the complex seem to be on an upward trajectory? or are other tenants in the complex likely to be leaving?

How old is the doctor. Doctors can shut down the practice when they retire. Or they can sell the practice which does not mean the new operator will stay in the same place.

 They just signed a 3year the whole area is good new businesses in the last few years in all the buildings and updated structures. not sure on the age of the doctor thatis a great idea and research that should be done!   thanks for your thoughts 

What do I need to know questions to ask things to calculate and look for? All even more foreign than single family home investing. Had an offer as BP says make sure everyone knows what you do had a commercial deal come to me today.... and It sounds good but IDK a think about commercial 

The Deal
Its a doctors office one of 3 building in the complex

What about commercial ? Might have a deal coming up in the next 60 days that's in the 550 to 600k its triple net property so all maintenance gets billed back to tenants as well as taxes and insurance and its a doctors office it will have a return of 6.5 to 7%
38k in landscaping went in parking lot will be seal coated and stripped within the next 3 weeks and also will have a brand new lease New lease will be a 3 year term with 3 additional lease year options and will be a 10% rent bump at each option And we can manage it all for you for 7% of gross and that fee gets billed to tenant so it doesn't cost you a dime Solid all brick building and tenant just did a 100k remodel 2 years ago

Have a connection with a local commercial lender in that area that could set me up with a loan?

Thank you for all the thoughts and Ideas presented you guys rock!

@Bryan Escudero @Frank Avallone II @Richard Advani

I will continue to educate myself and share more educational insights with my wife. Good research or learning YouTube or podcasts I need to start with.

Also what's the best way to learn more about underwriting as Bryan stated? 

I feel like the market is starting to work for me better the time iv been waiting for with more opportunities and deals coming to the market lately 

Quote from @Richard Advani:

Great job on your first purchase, sounds like a home run! I think its important to find a middle ground that is comfortable for both you and your wife. Leverage is a great way to accelerate your real estate investments however its important to leverage responsibly. Is your plan to duplicate what you already did with your primary home or to use the funds to buy an existing home that can be used as long term rental? I would start slow, with out of state investments you don't always need a huge amount to purchase a solid rental. Maybe use some equity to buy one, rent it out, get a few months of rent in the bank, share the success with your wife and then see if there is a comfort level to continue.

Feel free to DM me if you want to discuss in more detail.

 The goal is to buy established homes or rentals that may need some work. I have a large pool of construction / contractor connections a mix of family and friends in Indiana and Kentucky. I want to leverage those connections to help keep things sorted as I work in Southern Utah now. More hands off building, with the possibility of building new duplex to fourplex apartments in the future. Would 30 to 50k in cash from my saving help get the ball rolling maybe dump more fund into saving do the first home or two with that and leverage the house for bigger progress after 6mnths or a year? 

Hello Fellow Investors and Professionals

Financial consultants, wives, husbands… etc.

Have a question for you! I build our family home with my own two hands took me 3 years to do… but saved me tons of money and got a lot more for my money. Have 252k in a mortgage cost of building the homes (mine and mother-in-law suite) and land the homes are on. home appraises for 596k and the 7 acers of land worth 300k. I don’t have any debt but this house loan. No cc auto loans nothing just living expenses and insurance a month. Making into the 6 figures a year with my “day jobs” wanting to branch out and get my real-estate portfolio growing for my future and retirement. My wife is under the impression “Dave Ramsey way” getting the house paid off in the next few years but my interest is so low it seems a waist to not use a home equity line of credit to buy multiple properties and get them into their own conventional loans and put the money back to our home after the loans are established. I don’t know what direction or the best strategy for progression and growth in the real estate and rental business. Would love some advice or direction with facts or numbers to share with the wife to talk over a plan or strategy for our family. Don’t want to mess up and put our family home in jeopardy but I feel it’s a value to help get farther faster. It will also me out of state investing after ready many bigger pocket books “this is the way”.

Nice Work TIM!

Working on getting my gun loaded to start pulling the trigger more often! 

"What is the airspeed of an unladen swallow?"

@Chad McMahan African or European?