All Forum Posts by: Rich Weese

You are the one that is in charge here. I haven't done any large buildings in Colorado in three decades. I did sell a 154 unit building in Garland Texas last year. I had enough contacts here on bigger pockets as well as in the general market place, that I sent a letter out to each one with what I was willing to pay for commission. I am knowledgeable enough that I did not need a listing person. The story of that transaction is somewhere here on bigger pockets. I had numerous offers on the building and each realtor knew that I was paying no more than 1 1/2% commission. I ended up negotiating it down to roughly 1% total and sold for $8,750,000. My belief is you are being ripped a big one at 6%.

Good luck.

PS. Remember, inventory is at a premium and you are in control. I have two other buildings in Dallas area and I received calls every single week about a buyer that wants to overpay for one of my buildings. Keep that in mind.

It would be how you wrote the contract. If you ask in the contract that the loan be assumable based on credit, and you and have no difficulty doing. If the seller is not willing to allow the loan to be assumable, then you are taking a big chance. He would have the option to call the loan.

My storage facility was 550 interior units with additional units outside for cars and boats. I added another 80 units inside by converting some large spaces to more individual household size spaces. I know that was definitely in need of on-site management. If I was purchasing a different facility with less units, I would do some calculations and determine if the property could handle salaries for on-site management. That would probably very from area to area so I don't think there is a hard, firm rule.

I would also not purchase a small complex like the previous poster did. I am at a stage in my life where I do not want to be doing the management and need a complex large enough to support an on-site manager.

I found the property by accident. I had actually gone to Florida to look at a different building. The units were not a franchise building when I purchased. My buyer did move them into a franchise organization. The changes I made to the property were a complete painting of the exterior and a definite improvement on the website. There really isn't that much that goes wrong with the storage facility. I am at a point in my life where I do not need the cash flow so I doubt I would purchase another storage facility, since they have such little depreciation.

I purchased a storage facility in Bonita Springs Florida. It was a value add property. It was only 55% occupied when purchased and I increased the occupancy to 90% and sold the property. It was a cash cow with almost no offset in depreciation. I did a 1031 and exchanged into  two large apartment complexes in the Dallas, Texas area. It was a great property for cash generation that I am able to accomplish the same thing in the two apartment buildings with much of the income covered by depreciation.

@Ken D.

in a previous post you said you'd clear $200,000 in the refinance. It can be used to replace some of the lost ran that you would have.

@John Thedford

There would not be any recapture of depreciation if you strictly used the home as your personal residence for two of the previous five years.

@Thomas S.

There are so many differences between the Canadian real estate laws  and real estate laws in the United States. They are two completely different ballgames.

@Tyler Kastelberg

If I have the time, I would love to get in a discussion with you over one of your comments. We could have a very enjoyable thread for bigger pockets members to look at.

"One thing that I tell all my investment partners..... A break even investment is not a good investment."

I would be more than happy to give you many examples of where that was the very best item for me at certain times in my career. Different strategies, different times, different vehicles, different financing options, etc. etc. etc. Everyone is not always strictly looking just to build their estate. Anyway, you live in a great area. My main real estate facilities were in Fullerton on Chapman Avenue next to the 57 freeway. I purchased those two buildings 45 years ago when they were brand-new and names in them weese financial Plaza. There was a lot of money going around in those two buildings between the escrow company, title company, and my real estate company.

Everyone have a great day.

rich 

New areas since I was active. If I receive a message, can't seem to reply to it. Suggestions. BP used to be much more user friendly,imo. I don't see many of the old timers posting. Maybe they aren't as techie as the millennials either... Help with this.

Thanks.

Ken,

I think I missed something in your post. You stated this property qualifies for the primary residence tax exclusion. I was under the impression you were still living in the house. Now it looks like you already qualified for the number of years out of the previous five and are actually renting the home. Is that the status? You don't have to invest the entire difference between the loan amount and the sales price. Simply determine what your comfort level is for reserves. How much of the $2600 is actually net to you after paying mortgage, taxes, and insurance?

On this particular property and as long as you have a primary residence you can sell with no tax consequences, I would normally do it that way.

I should have proofread this post. It has been quite a while since I was active on BP. Sorry for the mistakes.