All Forum Posts by: Wes Phelps

Thanks James!

Current owner is looking to sell the entire property. Roughly 2700sqft. We have another space we are looking at, but its not in as good of a location. However, it would be a lease. 

My idea again is to potentially cash flow the laundromat side, which would mitigate some of the risk involved. 

...there is also already an offer on the property, so time is of the essence. 

I have an investor that Im working with try and find a building for a "Coffee & Cereal Bar". Locations great. Im just unfamiliar with what may go into turning this into a quality business. Originally it was a DQ location and has since been walled off and turned into a laundromat, and the other half has been several other businesses. 

My thought is to reno the, lets call it Left Side, and keep the laundromat (Right Side) for cash flow purposes. In the mean time it gives us time to test the business and see if more space is needed. Given this is my first potential deal, im really not 100% clear what things potentially cost, or what red flags I need to look for. Seems like the drive through and parking lot need some TLC. At this point I think it may be time to get a GC involved?

After speaking with the owner, it sounds like he is offloading some of his properties from his portfolio and preparing for retirement. That leads me to believe the laundromat does relatively well, he just doesnt want the upkeep and maintenance anymore?  

My last concern is tied to inventory and what may be needed. Cant imagine there is an easy way to go about this other than literally google searching and making a list?

Tips appreciated. 
 

1. Id love to chat with someone who handles purchases and acquisitions for a 3rd party since I'm brand new to this...

2. I'm meeting with my agent this weekend to look at a property for one of my investors. I know what we want to put in said location, but have NO clue what I need to bring, what I need to ask, or what I need to be looking for. Help appreciated as I professionally stumble through my first deal ;) 

3. Referring to #1, I have no clue what kind of deal I should be working out with my investor as far as pay goes... I know that statement has various questions that go with it, so again, if someone is willing to chat, id appreciate it. 

thanks, 
Wes P

I am going to see a commercial property for one of my business associates. We have an idea what we want to use the location for...my question is, what are some things I need to look for, ask, and bring with me?

...can't say I've even done this before so looking for some friendly guidance.

Thanks

I went ahead and used some of the sites listed above. I came up with a gross yield of 15.6%. Some of the number from the sites im seeing are a little foreign to me...

@Jimmy Woodard could you assist in some clarity? Let me know and ill reach out. 

thanks, 

 You the man, thanks Jimmy!

Thanks Jasmine, i appreciate the info. I have a general location in mind, and I figured there might not be a proven method as far as anticipated cashflow. Ill be looking at zillow as well as the other site mentioned :) 

Iv tried to do some research around this topic but almost seems like there is TOO much info. 

I have a cash buyer whom im partnering with, but having some trouble figuring out where to start. Obviously we have zillow to search for properties. This issue is, where specifically do I look? Is there a formula that I can use to calculate whether or not its a good investment based on cash flow and expenses? Needless to say I'm pretty fresh in this space... so help appreciated. 

-Wes P

 Thanks Tim, I appreciate the info. I had a zoom call with Mo the other night and tried to clarify exactly where we wanted to start. It seems like we have a good problem in that we have several places that we can start. For the vacant building, im going to let Mo and his Dad figure out whether or not they want to get a tenant in or a possible triple net. The rentals on campus/next to hospital we are going to sit on for the time being until Mo and his Dad can come up with a logical path for the transfer of those assets. I also have a local business owner who wants to partner up on a new "Coffee and Cereal Bar", so I will take that venture on my own since no monetary funds are necessarily needed. As for Mo and I, it seems like he wants to be more acquisition oriented, so ill be looking for local mid/long term rental options as well as short term vacation rental options. I know there isnt necessarily a question attached to this post, but at least we have clarified what the areas of concentration are. 

-Wes P